It is no secret that ‘big banks’ worldwide are scared of crypto currencies, and they have every right to be. After all, crypto currencies are the up and coming financial innovation, stripping the centralised institutions of their ability to keep their money movements above board and dirt free.
Banks suppress crypto currencies because they are scared of it, and in reality, they are out of their depth with the new Blockchain technology and are scrambling to find a way to stay relevant and clean in todays market.
To be blunt, centralised institutions worldwide don’t know how to understand it, control it, and they most definitely do not want transparency of their transactions in their dishonest dealings that take place.
Banks are using the excuse that their reasoning behind not dealing with crypto currencies is their lack of Anti-Money Laundering (AML) procedures in place, however, this no longer holds up in court.
Banks and Money Laundering
Throughout history we have seen all too often banks involved in money laundering and ripping off their clients, yet we are ever so quick to forgive and forget.
In November of 2018, Germanys’ biggest lender, Deutsche Bank, had its latest of many laundering scandal. $200 billion of suspected dirty money was revealed. We later came to find out that the German Bank has handed over $18 million over the last 10 years to settle AML disputes.
Since the year 2000, Buffett Investment, Wells Fargo, has been fined 93 times in regards to money laundering, for a total of $14.8 billion.
At the beginning of this year the Royal Commission released their report into the misconduct in the Australian Banking and Super Annuation sectors and their findings were nothing short of an absolute disgrace. Evidence of 100s of millions of dollars being taken from Australians right under their noses was released to the public.
But it doesn’t stop there, over the last 20 years the following banks have been fined for money laundering, and this is just a small few:
- Bank of America – $58.4B
- JPMorgan – $29.7B
- Citigroup: $17.2B
- Goldman Sachs – $9.6B
With bank scandal after bank scandal still continuing, this goes to prove that large global financial institutions are enablers of illicit financial flows. What makes this situation worse is that this is only a small fraction to pay for these large institutions compared to the profits they make from facilitating criminal transactions day in day out.
So does this sound ironic that banks do not want to support or work with crypto currency companies due to their lack of AML procedures, they even go as far to say that they are unregulated and often criminal.
This is the exact reason why Bitcoin was born, to combat the global financial crisis that the centralised financial institutions have caused.
A Greater Need For Financial Freedom Now More Than Ever
Decentralised crypto currencies, such as Bitcoin (BTC) and Ethereum (ETH) have strong advantages over centralised financial systems, primarily due to the fact the user is in complete control over their funds, by only allowing users to gain access to their private keys and no other centralised entity or platform. This encourages users to be more financially conscious and responsible.
This financial freedom and independence provided by crypto currencies is not only beneficial but crucial for individuals and businesses operating in regions, which as we can see is everywhere, where government entities control the banks and financial institutions, and where these centralised institutions still continue to operate money laundering schemes under the table.
It is no doubt that crypto currencies have significant advantages over banks in a number of areas, including but not limited to, security, borderless transaction settlement, efficient payment clearance and lack of dependence on centralised service providers or entities. It will only be a matter of time, and a matter of another major rip off from the banks that crypto currencies will soon become the more trusted financial avenue.