The opinion of many banks is to stay away from using cryptocurrencies that are tradable via https://bitcoin-champion.com/, either for not taking risks or simply for legal reasons; they consider them too dangerous to operate with them.
After a decade of its creation, they fail to obtain banking entities’ credibility.
Why the blocking of transactions?
This process changes depending on the jurisdictions and financial entities; some law and bank management experts express that the reasons for blocking transactions of this type are accurate and robust.
In many financial entities, the execution and processing of transactions with cryptocurrencies are illegal since they consider them elements without legal basis to operate in a traditional way like any other financial asset.
It is very accurate that cryptocurrencies, in particular, are not legal in various parts of the world. Due to this, it is illegitimate for banks to carry out procedures and transactions with a connection to bitcoin.
In China, banks do not carry out transactions based on or related to bitcoin because it is against the law.
Similarly, in other countries, banking institutions are pressured to work with companies that operate with cryptocurrencies, which is not very advantageous.
Many big banks’ opinions were not before agreeing to carry out essential research to understand how cryptocurrencies are operated and managed.
The process of acquiring and selling cryptocurrencies is not simple or reliable; in this process, the banks relate and interact with all kinds of intermediary mediators without any control; in these processes, there is no certainty of obtaining the coins for which they are purchased covering a respective payment.
New regulations for banks and crypto transactions
In Russia, the government of this country launched a law plan in the year 2021 which does not allow people to pay for goods and services with cryptocurrencies; it only makes it easier for them to acquire them with lucrative scope.
It shows that they will grant a legal way to buy cryptocurrencies in Russian banks, taking into account that these types of transactions must be notified to tax entities at all times.
Even though cryptocurrencies are legal in some geographical entities, many banks do not accept having relationships with clients who usually express anger since the institution has no connection with cryptocurrencies.
These clients usually do not accept the risks and disadvantages that operating with digital currencies represents for the institution; the banks do not accept the cancellation of invoices corresponding to misinformed clients.
The volatility of cryptocurrencies is very average, this is represented, for example, in the purchase of 0.2 bitcoin for a credit card, and then the price plummets; this can cause customers to believe that they were scammed in some way. In addition, it causes a conflict where the client sometimes claims the credit card company for alleged fraud.
Cryptocurrencies, for most banks, are not worth it.
Although many banks have accepted cryptocurrencies with pleasure and willingness, such is the case of the Medici bank, a robust and solid bank created by a member of the Italian banking family, Prince Lorenzo De Medici.
That is why it is expected that there is this acceptance of them and that the entities that for many years have protected their valuables can also defend their cryptocurrencies.
It is true that for banks, it is not yet worth the cost of investing time and money to process transactions related to their best clients’ tokens and implements proper and practical strategies to prevent and avoid crimes and scams related to cryptocurrencies when it is still a market starting.
The entire capitalization of the cryptographic market corresponds to an amount greater than 360 billion dollars; for Bitcoin and the other cryptocurrencies, they must achieve final bank acceptance; these cryptocurrencies must be much more than just themselves.
In the long term, cryptocurrencies will be the favorites in all types of economic exchange, for which the majority of financial entities worldwide will end up accessing their application and use throughout the banking system, thus achieving the trust and credibility of enthusiastic customers in be part of this new world of digital commerce.
The laws are clear and precise, but they do not yet reach cryptocurrencies since their main attraction is decentralization, security, and anonymity, relevant aspects of this cryptographic environment.