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Banning Crypto from Banks is the Most Undemocratic Action

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The recent news of banks banning crypto transactions has been met with a lot of criticism from the crypto community. After all, crypto is supposed to be a decentralized, democratic form of money, and banks banning crypto transactions is the antithesis of that.

The problem is that banks are not only banning crypto transactions, but they are also preventing customers from accessing their own funds. This means that customers are unable to use their own money to purchase crypto, or to transfer funds to exchanges or other wallets. This is a huge problem, as it is preventing people from accessing their own funds and using them as they see fit.

The banks’ reasoning for banning crypto transactions is that they are concerned about the potential for money laundering and other criminal activities. While this is a valid concern, it is also a bit of a red herring. After all, banks are already required to comply with anti-money laundering regulations, and they have the tools to do so.

The real issue is that banks are afraid of the potential for crypto to disrupt their business model. They are worried that if people start using crypto instead of traditional banking services, they will lose out on fees and other revenue streams. This is why they are taking such drastic measures to prevent people from using crypto.

The problem is that this is a very un-democratic thing to do. Banks are essentially preventing people from using their own money as they see fit, and this is a violation of basic human rights. It is also a violation of the principles of a free and open society, as it is preventing people from participating in the global economy.

The good news is that there are still ways to access crypto, even if your bank is banning crypto transactions. You can use peer-to-peer exchanges, or you can use services like LocalBitcoins to buy and sell crypto. You can also use decentralized exchanges, which are not subject to the same restrictions as traditional banks.

Ultimately, banks banning crypto transactions is a very un-democratic thing to do. It is a violation of basic human rights, and it is preventing people from participating in the global economy. It is also a sign that banks are afraid of the potential for crypto to disrupt their business model, and this is something that needs to be addressed.

42 thoughts on “Banning Crypto from Banks is the Most Undemocratic Action”

  1. Well, at least we can all agree that banning something just because it’s not good for society is a slippery slope. I mean, if we did that, we’d have to ban traffic, pollution, and reality TV shows…

    *^(Wait a minute)*

    Reply
  2. Banks ban crypto because they are scared.

    They are scared of the government and they are scared that crypto will reduce their relevance.

    At the same time some banks are limiting crypto involvement, others are building their own blockchain like JP Morgan.

    Reply
  3. The fact that they’re fighting Crypto proves that its on the right path.

    Who cares what a few politicians think? Thats the whole. point of a Decentralized network. (Unless you’re a Solana maxi..)

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  4. I used to had a good relationship with my bank account manager.

    One day he calls me because he saw a lot of transfer for/from crypto CEXs and adviced me to invest in their financial products instead.

    Closed that bank account the same day.

    Reply
  5. It’s one of many, many undemocratic things to happen in the history of humankind. People in power will do horribly unfair things to stay in power. It’s our job to speak out against it.

    > First they came for the socialists, and I did not speak out—because I was not a socialist.

    > Then they came for the trade unionists, and I did not speak out—because I was not a trade unionist.

    > Then they came for the Jews, and I did not speak out—because I was not a Jew.

    > Then they came for me—and there was no one left to speak for me.

    —Martin Niemöller

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  6. I can’t wait for them to ban these scam coins like Bitcoin! Then maybe they can introduce their own coin controlled by the banks!

    Heck maybe even after that they should introduce some kind of scoring system to see how we’re all doing at improving society.

    What if we then incorporate the two? We could prevent people from doing all those bad things like gambling so much or smoking or drinking too much soda.

    Think how great the world will be. /s

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  7. It’s pretty annoying. I’ve got friends having their transfer denied by their banks, luckly they switched banks.

    It’s our money, they shouldn’t have a saying where we chose to spend it.

    Reply
  8. Banks ≠ government. They’re businesses who obviously want to crack down on their competition. The problem is when governmental agencies deem banks as too important to fail and side with them while discouraging participation and actively spreading misinformation about crypto.

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  9. The local state and federal governments trying to stop ride-sharing apps like Uber and Lyft from operating their business in a vain attempt to protect the taxi industry.

    Gold ownership was banned by FDR when the government wanted more taxes and to prevent bank runs.

    Emporer Augustus of Rome banned a type of unbreakable glass called“vitrum flexile”, as he feared it would devalue his silver and gold

    Just a few examples.

    Well they always try to ban the new disruptive technology and eventually always fail, they just delay the inevitable.

    Reply
  10. When someone claims they need to protect you from yourself they’re typically a sociopath who just wanna control you and fuck you, banks and politicians are no different.

    Reply
  11. While I see your point, let me offer a counterpoint and how I see this progressing from here logically. Medical Marijuana dispensaries aren’t allowed to bank with FDIC insured banks. If it’s legal in your state, why can’t you just use a local or regional bank?

    Mainly because it’s FDIC insured and marijuana is still illegal federally. Crypto is kind of in a similar position but for the opposite reason. It’s not allowed in certain jurisdictions but it’s legal federally.

    So yes, banks could allow crypto deposits in many places and many are coming around to it. But changes like this happen slowly. As of now it’s happening mainly in the form of brokerages paying higher interest rates than banks on cash deposits while also allowing crypto on their exchanges. The only thing is that crypto isn’t covered by FDIC or SIPC and they are very upfront about that.

    So you *can* store crypto in many brokerages, but those assets aren’t covered incase of failure. I feel like in the next few years we will see many banks argue for the same treatment regarding FDIC coverage.

    Basically if brokerages can separate accounts by “insured” and “not insured” there’s no legal argument against not allowing banks to do the same with crypto and FDIC.

    We are actually in the time where things like this start to change. A lot of changes to the banking sector were put in place after 08. With whats happening now I’d be surprised if no changes were made again—assuming the crises continues awhile.

    When banks need liquidity they look for new sources of revenue and crypto might start looking a little too tempting in the future. Many banks are taking the loan from the FED in exchange for their bonds, but If the contagion gets any worse they may start looking for new revenue once they’ve exhausted their bonds as collateral.

    Sorry if this was a rambling incoherent mess. Had a long night and early morning!

    Reply
  12. I imagine banks are sick of fielding crypto based fraud complaints and it’s just cheaper and easier to not allow the users to transact with any on/off ramp. Problem solved.

    It’s a private institution, don’t like it? Go to another. It’s easy.

    Reply

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