So what I'm ultimately getting out here, is that crypto currency can't go in line with banks. What are your thoughts towards this?
If the Bank is completely against bitcoin then we cannot convert bitcoin to fiat currency through the Bank's services. I think the Bank is not really opposing it but rather limiting it because they are worried that bitcoin will become a competitor and it is not the Bank that is opposing bitcoin but rather the government with its laws. I don't know how it is in your country but we have banking services to convert bitcoin to fiat and even taxes are regulated in such a way.
Every system that has been built will always be maintained by the government, in this case the bank as an institution providing money will think about how this system does not collapse. Banks are controlled by the government, while Bitcoin does not have anyone's control, so the government is worried about the development of adoption that will occur.
I agree with you, if banks really hate bitcoin and oppose bitcoin, we will no longer have the opportunity to use bank accounts to buy bitcoin. Just because they warn about bitcoin doesn't mean they hate it, they just want to protect their customers and they are following the law because bitcoin is still not legal in many countries.
Banks conduct their business through customers' money but when customers invest their money in Bitcoin with the help of banks, the bank will lose assets and their business will be affected. and because Bitcoin is still largely illegal, banks may be against it. But all in all, if the banks were getting good profit from Bitcoin then they would be right to support Bitcoin instead of against it.
Many people are unnecessarily exaggerating about bitcoin saying that banks and governments are afraid of bitcoin. Think how bad things would be if the government actually cracked down on bitcoin, and the clearest example is the Nigerian government banning centralized, p2p exchanges, just those small bans have caused many traders to Investment faces many difficulties. If they really hate bitcoin and punish it more harshly, I think bitcoin's popularity will soon disappear. Don't underestimate the power of government.
Banks and governments fear Bitcoin because the high volatility of Bitcoin will always destabilize a country's economy if every country uses Bitcoin as FIAT money and if the government keeps Bitcoin as a reserve currency. And if the bank supports bitcoin then the bank will lose their wealth because the customers will be more inclined towards bitcoin which is more profit from bitcoin than the bank. And even if the bank's money is under the bank's authority, Bitcoin is completely under its own control