To some extent cryptocurrency or digital currency has created some percentage of fear and threat to the traditional and financial institutions with his decentralized nature and through the mechanism that drives it Blockchain technology
They believe that the technology that drives cryptocurrency will affect their transaction due to no participation of a central body involvement or government intervention that can serve as an intermediary between each transactions with this the digital currency threatened the traditional and the financial institutions.
Not only that also the nature of crypto that gives room to many criminal activities like illegal fraudulent act hacking and so on that has been carried out through the cryptocurrency wallets
Many investors have been scammed through this process and the financial institutions are being concerned about subsequent fraudulent act and the protection of their customers.
Some money laundering activities has been traced to several crypto wallets and investors are no more save
And this is the reason why the financial institutions are seriously alarming and afraid about the danger of the crypto space and this is one of the reasons the financial institutions calling digital currencies a threat to the safety of payment infrastructure.
Decentralized
As we all no that conventional currency the fiat money is centralized and controlled by the government which means that at any point in time the government could introduce a policy to control the circulation of money in the economy and also they can easily trace any criminal activities so with the fiat money government is in control unlike the digital currency that is decentralized and did not give room to a central body to interfere in their transaction,
With this both the government and financial institutions have lost power of dominance and control over digital currency exchange and transactions which they see as threats to the system
Also with the mass adoptions of crypto the government and the financial institutions see the digital technology currency as threats to their system and are ready to go against it ,
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