How it's possible to protect your privacy on banks?
Banks' employees: Sir, could you give me your ID card, please?
You : No, I want to protect my privacy.
Banks' employees: I'm sorry, but we need your ID card since it's one of requirement to create an account.
You: No, my privacy is way more important STFU.
If you use DEX, the banks won't know if you trade Bitcoin because you're doing it P2P, only the sender know you (but they only know they've transact with you, they don't know you real name, face etc.)
Exactly. You got my point buddy. We can't be anonymous in real life. You cannot be on a flight without your passport. But, when you buy a ticket, you must show your ID or passport. There are some services that we cannot take without giving a photo or our identity. Such as opening a bank account, buying a new SIM card, buying a plane ticket, etc etc.
But, if you have other options, go for it. The fact I tried to point out is that your banks do not know that you have cryptocurrency until you tie your bank account on an exchange and buy cryptocurrency with your bank account. But, people buy Bitcoin using their cards these days which is breaking their privacy.