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    Author Topic: Why are banks against cryptocurrency?  (Read 1385 times)
    khalidkhan82118
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    May 22, 2024, 08:34:56 AM
     #21

    Banks tend to view cryptocurrency with caution for a few key reasons:

    Loss of Control: Cryptocurrencies are decentralized, meaning they aren't controlled by any one entity like a central bank. This disrupts the traditional banking system, where banks act as intermediaries in transactions.

    Volatility: Cryptocurrencies are known for wild price swings, making them a risky investment for banks that value stability.

    Regulation: The regulatory landscape surrounding cryptocurrency is still evolving. Banks are wary of getting involved in an area with unclear rules.

    Money Laundering and Crime:  Some fear cryptocurrencies can be used for illegal activities due to their anonymity. Banks have strict anti-money laundering (AML) protocols and may hesitate to deal with anything that could raise red flags.

    In short, cryptocurrencies challenge the traditional banking model and introduce a layer of uncertainty that banks are generally cautious about.
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