Banks stay away from crypto for now

xuanling11
Coinmonks
Published in
2 min readJan 9, 2023

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Photo by Etienne Martin on Unsplash

Banks will not touch crypto anymore.

Initially, I thought it was too risky for Banks to get involved in crypto due to regulations.

However, ChatGPT told me other way:

There are a number of banks that have chosen not to work with cryptocurrencies or crypto-related businesses due to the regulatory uncertainty and risks involved. However, this is not the case for all banks, and many banks are still exploring ways to engage with the cryptocurrency and blockchain space. Some banks have even started offering cryptocurrency-related services to their customers, such as the ability to buy and sell cryptocurrency through their online banking platforms. It’s important to note that the cryptocurrency industry is still relatively new and evolving, and it’s likely that the relationship between banks and cryptocurrency will continue to change over time.

It turns out the bank is just not capable of doing business in crypto simply because the crypto market is too volatile for them to control assets.

Also, It will be too easy for banks to dominate the space and make blockchain useless and inefficient.

Since crypto transactions are mostly irreversible, banks are harder to become regulate and cannot follow specific rules that apply to the traditional financial system.

It will take longer for banks to relearn the new technology while keeping the old system working.

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That is likely reducing the bank capability to operate efficient in the old system and decide whether or not to phase out the old one and adopt the new one.

Another reason is that the crypto is too new for banks to use now.

Many cryptos haven’t been tested as a massive adoption, and the transactions can’t handle up scale flow.

I do not see any beneficial of existing banks to adopt crypto at the moment and in the short term future.

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