I don’t understand how or why any digital currency is converted to bank currency. I thought the entire point of crypto was to operate autonomously from the global banking system. Why are banks paying out so much to crypto valuation?
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Are you asking, “why do banks bother to participate at all?”
I’m not sure if that is what you’re asking.
If it is, my bet is that if Bank ABC doesn’t exchange crypto for currency, then Bank XYZ will be happy to do so, for a fee. They’ll also require that the customer have an account at that bank.
Basically, a bank would lose business to other banks, if it didn’t offer crypto exchange.
Banks that do offer it, probably protect themselves, by offloading the crypto as soon as they get it from customers. They know the risks, they don’t want to be caught with worthless crypto.
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