Bitcoin Forum

itbit become first bank, what do you are think ?


http://cointelegraph.com/news/114057/itbit-set-to-become-first-us-regulated-bitcoin-bank

I am not against a bitcoin bank in principle. I am worried about fractional-reserve banking and inflating bitcoin supply. When that happens, we are back to square one.

so if i'll deposit there my bitcoin, could i earn interests on my deposit like a regular bank? and i expect also that they will cover me from possible loss/stealing, when dealing with merchants

Well this depends. Are they going to be almost identical to a bank and offer loans (not as easy as with fiat)?
If that is the case then they can let you store Bitcoin there. Although you're not from the US so opening an account might not be as easy as you think. We will see how this resolves in the future.

I say some sites like itbit.com and it seems that they are going to convert the btc into $$.so in that case what if bitcoin price rises 100$ and then they will be unavalable to pay u back.isn't it?

well i was talking in general, i presume that those new banks of bitcoin, will begin to raise very quickly, after the first one will be established enough

i expect another one in germany(they are usually fast in following "new trends") if it would be advantageous for them

ItBit is an exchange now and applying for a banking licence. I hope they are going accept deposits and operate like a conventional fiat bank, but adds a seamless bitcoin integration as a "foreign currency". They will offer loans only in fiat with an option to convert to bitcoin at a special rate.

ItBit is an exchange now and applying for a banking licence. I hope they are going accept deposits and operate like a conventional fiat bank, but adds a seamless bitcoin integration as a "foreign currency". They will offer loans only in fiat with an option to convert to bitcoin at a special rate.
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This would be great and set the standard for how easy it should be to use your bank to buy and sell bitcoins. If this becomes the norm across the banking industry, then bitcoin will have a legit chance for mainstream adoption.

I don't think the risk of not owning your own BTC is worth the small interest (I presume) that one could make unless you are legit rich.

Where is bank ?

Probably already must be create bank .

How long time begin itbit bank create ?

they are already ready, the bank is there(they are an exchange), they just need a licence to be regulated in new york, which is apparently coming in two weeks

https://bitcoinmagazine.com/20179/itbit-files-banking-license-new-york/

Wasn't bitcoin supposed to be a bank killer? =)))

Sounds great to me! As I am only a couple hour drive from NY, but why use a bank when we have our wallets at home?

When will be ready bank ?
Probably already passes 2 week

I don't get it.....so they will only operate as a bank in new york ?  What about the other states ? For example coinbase has USD wallets only in half of the US states, these guys will only operate for NY residents ?  seems odd....

itbit is not becoming a consumer bank (it would be nice). It is acquiring licenses to be on the right side of the law.

According to this "techcrunch" article (http://techcrunch.com/2015/05/07... (http://techcrunch.com/2015/05/07/bitcoin-exchange-itbit-gets-a-new-york-state-trust-company-charter-after-raising-25-million/)), itBit is the "only US-chartered and supervised bitcoin exchange that’s compliant with both New York and federal law". If this is true, traders would be more confident trading there.

Yeah , but why is Coinbase struggling to get USD wallets for all the US states , when these guys (Itbit) got approval for all US states in one go by applying for a different license ? Basically ItBit can keep USD wallets for all US customers in all states with this license and their USD funds are insured by FDIC ? This is by far the easiest road ahead...., why Coinbase didn't try this ? They pay a lot of lawyers and advisers for them to be able what ITBit does now...after these news got out I guess somebody at Coinbase is really mad on its lawyers...

Good in some ways others bad. If it was to go mainstream then many could simply open account deposit gain interest but again am all for banks accepting it but would cause so many problems than cure.

Eventually if mainstream bank accepted it then they would be admitting defeat but then what happens with our coins do they have control over them Id be making sure first if they where any pros and cons nation wide got closed down and many had accounts with them and lost a lot and nothing got done. Think am going to stick with my coin in my wallet first before going bank and them taking off me.

 I think it can nicely serve for bitcoin  legitimacy

and i think than will be similar services in Europe,Germany,Uk
There is of EU comission with his digital money departmant already established

Until very recently, Bitcoins could be mistaken for just another Internet fad. But when federal law enforcement closed “Silk Road,” politicians and policy makers took notice. Criminals, it turns out, really like bitcoins, which can be exchanged for nefarious purposes on the "Dark Web," with complete anonymity and, it seems, impunity.
So Bitcoin needs to clean its name.
Maybe that will hurt us but, anyways this could help it mainstream someday.

i would think that most bitcoin users would be against the idea of banks as it promotes centralization. in addition, this would link your identity to your spendings as well, eliminating anonymity.