Why banks want to turn the screw on crypto customers

Banks exist to service the needs of their customers, right?

Wrong! As crypto-using customers around the world are discovering, their choice of transaction raises a red flag to most banks, who are anything from suspicious through to downright unfriendly towards cryptocurrencies. Why? – Let’s look at a few reasons:

The often-given argument is that crypto can be used for criminal activities because transactions are untraceable – a statement directly contradicted by the entirely traceable nature of the blockchain. Most banks are inherently conservative however and the idea that they could be tainted by criminal activity doesn’t appeal, so there’s one rather unconvincing reason for locking out customers.

As a medium of exchange, crypto is fast, efficient, and low cost. Compare and contrast with the approach of traditional banking, which lumbers along, Dinosaur-like, and wants to charge inflated fees for even normal fiat transactions. Of course banks don’t want to get into crypto, which would erode their comfortable, high-earning business model!

The truth is that crypto can do everything that banks can do and more, going around the traditional financial systems, and leaving banks out of the loop. So banks know that they are becoming unnecessary, and naturally, they’re going to fight against that. The people who are caught up in the crossfire are the customers, both individuals and businesses alike.

There are now numerous documented stories of banks withholding or blocking crypto transactions by their customers, as well as barring purchases, and even refusing to offer formal notice to customers, who are kept in the dark as they wait for transactions to go through.

For example, ‘America’s Most Convenient Bank’ – as TD Bank describes itself – has announced that it will not, “deal with the kind of business” associated with cryptocurrency, and last year customers experienced severe delays and blocks to their accounts while trying to make cryptocurrency purchases. Meanwhile others such as MHBC say that they cannot, “verify the compliance of international wire transfers for cryptocurrency accounts,” putting all present and future transactions on hold. – And these are not isolated examples of the underlying agenda of why virtually every bank in the world views cryptocurrencies from an almost paranoid point of view.

At which point let’s turn from the problem, to the solution: A bank which has been created to actually support and enable its customer to use cryptocurrencies, seamlessly with any other assets. Bank 52 has arrived at a time when the tectonic plates of the market are shifting – forever – in favour of transparency, customer-facing ease of use, and lower fees. Of course B52 will still generate earnings, but not by making it difficult and costly for customers to use crypto. Rather there’ll be an income stream from the many innovative Apps which will populate the bank’s financial ecosystem.

Thomas Labenbacher comments:

“The whole reason-for-being of this new ‘Any Asset’ bank is to enable the seamless integration of cryptocurrencies, fiat currencies, and other forms of assets, transacted in clear terms, in a fully-regulated manner. It’s refreshing to know that after the numerous problems thrown up by the traditional banking institutions, there is a solution.”

For further reading, go to:

https://news.bitcoin.com/funds-frozen-account-closed-uk-banks-target-cryptocurrency-owners/

 

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