Banks don’t like crypto, and there are a few reasons why.
The traditional banking system is directed by a complex framework governing its accounts and users: the cryptocurrency system doesn’t neatly fit into this framework based on an outdated view of finance. Many banks have made active efforts to restrict crypto usage, and one of the key problems that new crypto users face is the time-consuming process of setting up multiple accounts on exchanges and swaps to buy or sell crypto.
There’s fairly limited legislation around digital currencies, meaning banks are stuck in the past when it comes to accepting or facilitating transfers or payments involving cryptocurrency.
Crypto is a disruptive system for traditional banks. Its advantages are endless: transparency, quick payments, and universal access are just some benefits. Banks have failed to sow doubt and control the usage of digital currencies as it becomes more apparent that this is no longer a niche area of finance or a fad that’ll die out quickly.
Banks have to create their regulatory framework around digital currencies: this is ultimately a costly and challenging process they are unwilling to go through. They’ve tried hard to present crypto as unreliable and dangerous and attempted to shut down any usage of it by customers. The European Commission has called for more regulatory infrastructure surrounding crypto, but the European Banking Authority has rejected this recommendation.
Traditional banks have made it actively tricky for their users to explore the use of crypto. In 2018, Bank Of America, Citigroup, JP Morgan, Capital One, and Discover banned users from buying cryptocurrencies with their credit cards. These bans occurred in many countries worldwide.
Fluid, on the other hand, believes that everyone should benefit from DeFi’s advantages without being deemed suspect by their bank and is taking a proactive approach to managing the risks of the space rather than trying to dissuade our users from stepping into the world of DeFi. That’s why we’ve partnered with predictive blockchain analytics firm Merkle Science, which offers best-in-class crypto security and compliance, to assess all the transactions moving on- and off-chain.
Two hundred twenty million people worldwide (and counting) use cryptocurrencies, making it increasingly complex for banks to ignore this. El Salvador recently authorized Bitcoin as legal tender (the only country in the world to do this).
Cryptocurrency has several advantages:
- Lower cost
- More convenient
- Fixed supply
- Greater alignment with our values
Banks make the integration of crypto into the traditional financial system difficult by preventing the easy day-to-day usage of your money and assets held in crypto. Going in and out of crypto, and reaping its rewards, is held back by high fees, complex transactions, and slow processing times. They are two different financial ecosystems, and the traditional banking system is working against making them easy to use together.
With Fluid’s revolutionary technology, we streamline your everyday use of crypto. With its bridge to crypto, we allow our users to move in and out of crypto in seconds seamlessly. Our approach involves utilizing the infrastructure of both traditional finance and decentralized finance.
Chief Marketing Officer Jessica Walker said, “For too long, cryptocurrency users have struggled to find a bank alternative that supports emerging technology and encourages it. The future of finance is digital and includes different blockchain solutions, and traditional banking will either have to follow this trend or better solutions will replace them.”
With our in-house Digital currency, the Digital Dollar (DUSD), you can mint from your bank balance in seconds: it’s then easy to start using your crypto to get higher yields and wider investment opportunities.
Instead of banning users from investing in crypto or making it difficult to benefit from crypto’s higher yields, the Fluid Account will make it easy to invest and spend in one seamless app.