Banks that refuse to work with cryptocurrencies are like bookstores that refuse to work with the internet. These are the words of Binance founder Changpeng Zhao. Banks have refused to work with cryptocurrencies since Bitcoin was founded, but it is starting to change slowly now. Let’s take a look at why these institutions are so adverse to cryptocurrencies.
Cryptocurrencies and banks are fundamentally the opposite models. Banks operate on a presence of a central authority, which is something that is not present in cryptocurrencies and thus banks continue to reject cryptocurrencies for that in addition to other reasons as well. Binance’s CEO thinks that banks may not be able to avoid paying a high price for refusing to modernize in the future. On the other hand, it should be noted that governments around the world are pressuring them concerning potential cooperation with cryptocurrencies and crypto exchanges.
A possible future
But cryptocurrencies are steadily gaining more and more popularity, which banks have, of course, also noticed. Therefore, they are cautiously starting to figure out possible ways of cooperation, which is mainly for the reason of not losing customers. Thus, some institutions are also starting to offer cryptocurrency services, if it is allowed by the legal requirements of their country of residence and or in the country where they provide their services.
Linking cryptocurrencies and banks could help both parties, but the road ahead will be long and possibly very bumpy. Governments have been pushing cryptocurrencies away from the spotlight with their regulations from the start, so a balance will have to be obtained between regulations to keep both sides happy.
What you can do
The world of cryptocurrencies is diverse and it will certainly be interesting to see when this collaboration takes place and in what direction it goes. If you’d like to learn more about cryptocurrencies, you can start your studies with our Platon Trading Academy, which will guide you through the world of cryptocurrencies and show you what opportunities cryptocurrencies can offer you.