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My understanding is that crypto is expensive to banks because crypto is expensive to any legal entity in general. And crypto kings not being able to hold their
by makeitdouble 2y ago
My understanding is that crypto is expensive to banks because crypto is expensive to any legal entity in general.
And crypto kings not being able to hold their coins in their bank account doesn't sound like "debanking" to me, because it never was banked in the first place (some banks sure did handle it, but not the ones they're crying about).
I also can't get my bank to hold my beany babies either, and nobody calls that being debanked.
- lmz 2y agoIt's not about storing crypto - it's about storing fiat currency for crypto companies.
- makeitdouble 2y agoThanks, I wasn't getting it and it's a bit clearer.
- sroussey 2y agoSame problem for marijuana companies.
- wmf 2y agoThe difference is that marijuana is illegal at the federal level while crypto is (nominally) legal.
- dalemhurley 2y agoIt is not about legality. It is about the costs exceed the ability to make a profit, it all has to do with liquidity and capital requirements to mitigate the risks. If you want to blame anyone, blame all the scam artists and criminals that targeted crypto. The banks cannot profitable mitigate the risks. If a bank cannot make profits they will collapse.
- dalemhurley 2y agoYes it is, crypto is wanting to use banks for the storage of funds, but the banks cannot afford the cost of doing so, because it costs money to manage the massive risk.