Traditional banks do not like the idea of cryptocurrencies very much, this is true. Banks need money; it is the reason why they exist. However, there is a type of money that they are suspicious of: virtual currencies or cryptocurrencies. They are digital means of exchange beyond the control of States and their agencies responsible for the supervision of financial markets.
Why do banks hate the cryptocurrencies?
The PNC bank recently threatened one of its customers for buying Bitcoin. Barclays closed a student’s account after their dealings with Bitcoin. British banks are avoiding companies that handle cryptocurrencies, forcing many to open accounts in Gibraltar, Poland, and Bulgaria. Anson Zeall, director of the Association of the Cryptocurrency and Lockout or Access Industry of Singapore, said his organisation had heard from 10 companies that had problems with their banking relationships in Singapore.
Chia Hock Lai, president of the Singapore Fintech Association, said that some of the members of her organisation also experienced account closures. Several banks around the world are not happy with people who buy Bitcoin. Banks have closed client accounts due to this activity. Since its inception with the creation of bitcoin in 2009, the first and best known of them, there has been controversy all over. For some, they open the door to the hope of building an economy that frees people from the yoke of political and financial powers.
With cryptocurrencies there is not even a possibility to hoard, to accumulate; they are only means of circulation. Thus, they could help to end the greed intrinsic to the capitalist system. The rejection of large financial corporations is because the virtual currency is not controlled by the banks, but has a general control that is entirely public. Everyone can control everything, and everything is in sight.
In the banking sector, there is a significant lack of knowledge about cryptocurrency and technologies. This ignorance is enough to make the bankers nervous. In the tradition of the financial sphere, trust is a gentleman’s agreement, and not something created by encryption and data sharing. Older and older institutions have their interest in maintaining their dominance in the market. In many ways, these traditional banks need the current system to last as long as possible to benefit from the ongoing recovery after the banking crisis that occurred almost a decade ago.
The most substantial damage banks can inflict on existing cryptocurrencies is to accept this concept and develop their own currency of this type as a competition. Cryptocurrency offers an alternative to the banking and financial sector, and business in general. The two types of currency, traditional and digital, can coexist. A situation may arise in which a group of countries, which carry out an active trade with each other, develop their own version of fiat money in the form of a cryptographic currency.