Bitcoin Forum

What is the essence of banking system since 2009 in the advent of cryptocurrency? It is well known that the globally has new invention which has manifested in our economic systems. Cryptocurrency has became indispensable in this world of humanity, which can be advisable for banks to adhere to this idea so that it could later become visible escrow members.

We already trusted our banks as an escrow, and look where that led us... What you're saying is impractical and would essentially be going back in time to what we had before Bitcoin.

I don't trust banks. They are also inflation do nothing else. I think that does not need any bitcoin Bank. For me, it is quite safe e-wallet to store coins. Earn coins better work. All interest on deposits offered by banks eventually inflation eats.

Many.of us don't trust banks but for majority they are still inevitable. And despite the strong fight against cryptocurrencies at the begininig they hav also realized their value and that they can make profit on it, especialy Bitcoin. Some are already experimenting with Bitcoins and in the future some of banks will also offer Bitcoin related services.

we need banks so we can buy our bitcoin but not to control bitcoin  ;D

The blockchain will replace all the banks and their transaction serivces.
The blockchain is the new global financial system.We don`t need bankers anymore.They are parasites.
This is just my opinion.OP,your should change the title of your thread.
The question is a little bit confusing.

I think that in the future, bitcoin will be used by banks in parallel with ordinary money, complementing them. Maybe they will do it even so that they can be used without the Internet.

It is possible, but if so, btc will definitely have to make changes and probably no longer the btc's current features are decentralized, anonymous, etc. But the user definitely does not like btc to be  concentrated in  a system.

Banks are already started to invest in their own coins. So, it is tough for us to get a same ecosystem here in bitcoin under their watch.

who said it won't? :)
if bitcoin becomes more adopted than this and the countries continue regulating it as they are right now, soon we will need the services that banks offer.

besides what do you think something like Coinbase is? it is not a bitcoin wallet. it is in fact a bank! it just has not yet offered all the services a traditional bank offers. services such as loan, credit cards,...

The Russian and Kazakh central banks are already engaged in the introduction of crypto-currency into financial systems. Over time, banks will operate on them.

Yes it could possibly happen soon but i don't know how the people would react to its sudden changes, specially if the unique characteristics of bitcoin is being change such as the anonymity of it. Bitcoin really need a lot of work to cope up the fast progressing technology in our society. I think it's not that bad to operate the bitcoins by bankers, i know some banks is accepting bitcoins.

But I don't think Bitcoin will be operated by banks in the future ???

They will choose Ethereum or Ripple or something alike

I do not think future bitcoin will be active in the bank, because the bitcoin's freedom can not be allowed in the bank and I think bitcoin will never be able to operate in the bank.

Let me tell you what banks want to do with Crypto Currencies : They want a Coin which they can control centrally and access will be strictly

monitored and controlled by them. {As is being done with KYC/AML regulations now} All your tx's will be linked to your identity and eventually

their version on Bitcoin, will replace Fiat {cash} The supply will also be manipulated by them. This is coming ....be ready for it.  ;)

Bitcoin will never be accepted as way to deposit in any bank in near future because banks need to verify source of every bitcoin/money people will deposit  but bitcoin transactions can't be tracked down.

Although banks have already started developing blockchain based ledger system for their banking system which you can claim as influence of bitcoin's growth.

The service that a bank provides is the ability to access your physical cash as "digital money" - a number in a bank's database.  This is because earlier systems of digital money required an intermediary to be spent conveniently.

Bitcoin changes this.  That's basically the whole point of its existence.  You can have access to your coins as if it were cash, and have full sovereignty of funds.

It's suicidal to suggest going back to the days of banks.  If you want a loan, you would get it from a regulated loan company and most likely have to give your personal details to them.  That's okay, but your bank doesn't have to have full control over all of your possessions and money.

Loans are how banks create money.  New money is introduced into the economy because banks make it up out of thin air to give it as loans.  Real loans would be giving out money which actually exists.

As for credit cards, they are just a means of encouraging people to go further into debt so that more debt-based money can be created and sustain the economy.

You're never sure really when it comes to this kind of business. But for a fact I know that bitcoin is ten times (probably more) safer than the mainstream banks. A couple years back a bank went bankrupt, my aunt was a member there, and she ended losing quite a bit from her savings. So even if bitcoin doesn't turn in what it was supposed to be it's still better than the mainstream banks.

what are you trying to say my friend, your post look confusing, with random words, bitcoin have nothing to do with bank, but bank can buy bitcoin and give you itnerest on deposit, i think this is a legit thing that can be real in the future, but not something that you need for bitcoin,w e can live without banks

We don't have the same way of looking at things bro. I respect your perspective though.

It is a bit too much to say that cryptocurrency is indispensable in this world. I think people learned to embrace it but not to the extent that we cannot go on living in this modern world without crypto.

And banks becoming escrow members? A big NO NO! That would be very hard to imagine.

Because banks are still needed and they serve a particular and separate purpose than cryptocurrency! I don't get why people argue that banks should disappear because of cryptocurrency. Banks do two things. They accept peoples deposit and they lend those deposit to borrowers. Basically it distributes unused money. Banks are hipsters, they started the "sharing economy!"

If we see the present progress, many banks around the world have adopted the blockchain technology for data remittance but none has used it for issuing tokens or transacting Bitcoins.
In future, we could see banks offering investment in Bitcoins. They could create Bitcoin reserves and offer people returns. But again limited supply makes the utopia too good to be true. However, there are no chances that banks gonna use Bitcoins in their operations.

These are all may we see in future but ETH would be option for them due to rate of growth when compare with bitcoins. We are seeing ICO and other projects by Etherum based smart contracts.
Of course future will be run with the digital currency option only but corporates and people hating bitcoin will never let it run like that.

What ever the coin can make a development but it cannot touch the real technology of bitcoin which is following. other altcoin are operated by its developer and even if they are offering their platform for other developers to develop it. but still it is getting depended on that coin. But if the coin developer just leave the project then all will get scammed.

The intention is to completely destroy decentralized Cryptocurrencies with their own centralized cryptocurrency. I have strong feeling the idea will fail especially if the intention is really to render decentralized Crypto useless.

i do not think that they will keep any option, they are going to start with bitcoin only and if they become succeeded to manage then they can take another option but till that they do not need for any other option.

That's the only thing likely to happen and that is banks will have their own blockchain but unlike bitcoin's they will be centralized ones. Bitcoin is a decentralized digital currency and is independent of any bank and in fact bitcoin doesn't even require a bank for it's existence. It's just possible that you may see banks vanishing from the scene but bitcoin's being operated in the banks is far from happening.

In the future, maybe everyone will be their own bank...that is sort of the point of a decentralized protocol. Of course there will be some financial mediums still.

That is exactly what the bank and government wanted, they want to monitor every single movement of our transactions and they want to control the coin, I am sure government will try to regulate bitcoin, but when the government version of bitcoin being created there will be no one interested on it, the banking system and Bitcoin got an opposite system

you are right here a lot of people are not interested in keep large amount of their saving in banks now because banks are not giving good profit now and people wants some output of their investment. Banks are not so much secure for the cash saving as well and always give slow profit so that’s the reason why everyone likes bitcoin now.

Well I am not sure if  Bitcoin will be operated in the bank in the future. If the bank operated bitcoin meaning to say bitcoin is tolerated as currency in a country. The government accepted bitcoin and bitcoin can be use by the government in some ways. Well we are in a new generation, everything we think is impossible becomes possible no one knows what will happen next.

Bitcoin is beautiful because it is a decentralized, peer to peer .  Banks will spoil the fun don't you agree?

You are absolutely right. The main aim of the bitcoin and many altcoins is decentralized, peer to peer and sometimes anonymity. This is exactly the opposite of current bank and government's system. But i am afraid in the future the banks and the government will control the cryptocurrencies. Even now, i am sure they are trying to control it.

Banks do not suit with bitcoin
Banks need a difficult way to transfer money and we need register with our identity
Bitcoin only takes two people connected to the internet it is enough
Leave bitcoin as-is now

Hoping to see the banks using cryptocurrencies (any) is just asking for centralization, wich is the total opposite of the cryptocurrencies ideology. If banks have to use it then it shall be done with our own rules and not theirs, otherwise there is no use to re-invent the same wheel where finally we don't have much freedom with our own money. The day we will be able to see the traditionnal banking system adopting crypto will be only in their own interests to get their share

Nobody is sure of what the future holds for everyone of us but for me, I will have to take the pessimistic view on the adoption of bitcoin by the banks which I feel will be a complete deviation of what bitcoin stands for which can equally be interpreted as an hijack of the the whole process. There is an option of them to adopt the blockchain technology to make them more transparent which is enough for them.

I don't believe bitcoin will be operated by majority of bank in future because it is a threat to the conventional banking system. At least that's how the top bankers are seeing it. Bitcoin is decentralized and that's what is not acceptable for them. Banks want to control money and government want to control power.

Bitcoin is providing money to the hands of the people and money means power to the government. So neither government nor banks will support free distribution of bitcoin in to the economy. At least they will not openly support it. Instead they will try to launch their own digital money and ask people to invest in it.

it doesn't matter how you define each one of these services. at the end of the day all of these services that banks offer are services that we all want and use at some point.

for example everyone is using credit cards, many of us have taken loans, most of us have deposit accounts in banks to get annual profit each month, .... and a lot more

Exactly! Here in the Philippines, our Central Bank (BSP) sees bitcoin not as money but as property thus, it is not subject to legal tender. Due to this, government intervention at the moment may seem impossible. As you said since bitcoin is decentralized, if banks control it this would eliminate the chance of everyone earning bitcoin. This would also result to potential price drop and lower investments made. I am sure the government knows this and that is why they avoid it at the moment.

No, bitcoins will not be operated in Banks because bitcoins is decentralized it is not like fiat money
but the bank will adopt technology behind of bitcoins,
the Banks in the future will adopt technology of blockchain in their business of banking system
or their business will be died because technology of blockchain is more cheap than tradition of payment system.

I do not see banks adopting the idea of using bitcoin as its a decentralized currency and the bank can only operate on centralized circles, but one thing is for sure they will adopt the blockchain technology as its easier to audit transactions that go on there and its one of the safest and most transparent tech system to use today.

Some Banks have tried to invest in Bitcoin. And I think, in the future there will be many banks that embrace Bitcoin platform, which will certainly make Bitcoin users easier.

There is a huge difference between investing in the bitcoin and operating the bitcoin. According to my understanding both the activities are very different from each other.
Banks invest in real estate and oil refineries as well, but they don't offer a housing project to the clients nor do they sell oil.
I think bitcoin is not invented to be operated by banks.

I dont see any goods of bitcoin pairing with bank, when bank combine with bitcoin the result will be bad, our transaction will be not anonymous anymore and we will be taxed, so it is better bank and bitcoin walk in different path and we need both of them because both of them important for our future economics

I think maybe there's a chance that bitcoin will
be operated by the bank in the future but I hope
it will not going to be different for what bitcoin it is now.

with bitcoin you banker for youself

At the moment, it's not possible.
Central bank in my country issued statement about bitcoin and explained that bitcoin is not official currency or financial asset and can't be used for payments.
So, in order that any bank in my country accept bitcoin, first central bank should change opinion about bitcoin.
Since they have to follow EU financial regulations and central European bank directions, I don't see that something like this will happen in the near future.

Bitcoin, as decentralized and anonymous crypto currency can't be operated in the banks, except if it is converted into fiat. Banking systems are different than crypto currencies, and require identity documents usually to open accounts and to make transactions, which isn't required when using Bitcoin and altcoins.

Banks will definitely develop their own blockchains, this is certain.Ripple is just the first of such. I expect most banking institutions to migrate to using blockchain tech as soon as possible. What banks will never own is the bitcoin blockchain. They can buy as many coins as possible though.

In Switzerland it is becoming a reality somehow. It is in the news that Falcon Group becomes the first Swiss Private Bank to offer XBT/BTC asset management. Financial Market Supervisory Authority (FINMA) had given Falcon Private Bank the approval, making the bank the first Swiss banking institution to offer Bitcoin. Here comes the wave, now many more banks would follow suit because bitcoin is gaining a popularity in financial landscape and banks can't afford to ignore it.

Banks will surely adopt and operate the usage of bitcoin as far as the consumers and potetial investors demands is concern. We cannot deny the mere fact that bitcoin is now reaching its peak of popularity that will make it possible that bitcoin will attract more users that will lead to the mass usage of bitcoin. When that time comes, bank will adjust its operational services that will suit consumers needs and wants.

if you track financial information, you must know that the bank in Switzerland announced accept btc in transactions and many other banks around the world have accepted btc

I'm not exactly sure with that because when Bitcoin exist the banks are there and it has no care for Bitcoin. Banks accept only a real money but for bitcoin it has its own bank and maybe that our wallet that we are using to save our bitcoin. Bitcoin is different from a fiat currency that we can hold it by our hands while bitcoin does not. Bitcoin is only a term for its name. but we can't hold it. What we need to do is to convert it into fiat currency so that we can hold it now.

The reason that I want to hold bitcoin is because it has the decetralization which gives us some anonymity that will cover us from knowing our identity. Also, I can manage my own coins, which means I don't need any third people like banks that will hold my bitcoin.

I think it will not happen because if bitcoin being operate by bank , bitcoin as decentralized currency paradigma will be vanish and bitcoin will turn into fiat which enable goverment to take the tax from bitcoin transaction

Same as you, I don't need to hold my bitcoin in third place, like banks or any other places, because with that, We disable a good thing in bitcoin which it's the "anonymously transactions".
I heard that some banks start to accept bitcoins, but i don't like this idea anyways, because when banks are control my bitcoins, I don't feel good, I feel my money is controled by someone else, not by me.

Aren't your exchanges who convert your Bitcoin into fiat and transfer that to your bank have all your information and act as third party. Government have a watch over those exchanges too as no business can run without government knowing it, at big scale. Banks will work the same way in case of bitcoin. There is nothing new in that. Banks on other hand may offer some more services too. However, you will always have a choice to keep your Bitcoin in your wallet securely without any identity loss.

I think not, banks may use other alt as ripple that are centralized

I'm sure it will be operated in the bank. The banking system will involve themselves more in bitcoin if they see a huge share of the market, they will incorporate themselves to get some bite. The bank will now be your local bitcoin wallet provider.

Banks will be open to using blockchain as a technology but I do not think that they will use bitcoin at all. And bitcoin is a way to do away from third party in a transaction, if we let the banks in again as escrows, then it is no different on what is happening in fiat.

I am not sure, this is a very interesting thought, when bitcoin transactions only need a fast time and without the help of anyone, then why do we still need a bank? I think the current bitcoin system does not need to use a bank and should be.

You can't be sure if banks will be operated in the bank. But you can be pretty sure, that blockchain will compete with banking system. I think we will see some BTC Banks soon.

Definitely true and I really agree with you ,
We need banks to buy and sell our coin ,
But I just hope that they won't get greedy and dream of controlling it.

There is no real need for banks to be using Bitcoin, much in the same way that Bitcoin doesn't need fiat under the right economic circumstances. People can use their own wallets as a means of secure storage should they need something like that for their own use. Banks can operate as mediums for international trade, and those international mediums can use Bitcoin in the way you're describing.

I am not sure Bitcoin will be operated in the banks in the future. However, I know banks will run their services through some of these cryptocurrencies, majorly with Bitcoin, in the near future. The banks will expectedly run Bitcoin related services too and make money off transactions from the blockchain. As for banks serving as escrows? That would be a bad idea and development considering where the banks have got us so far with their shambolic services.

Currently, bitcoin is not accepted by banks. But government banks are not banned and the law does not interfere. But with the current financial mobilization, currency to the throne and valuable to gold or can be converted into cash in the future BCT is acceptable bank.

The banking sector has equally achieved some advancement from 2009 till date and this has not stops so I don't see them not tapping into opportunities offered by bitcoin since afterall, we all still need the bank. In as much as most people in the crypto world don't trust the bank, that does not remove the fact that they have been more than helpful in ensuring the news and trade is spreading as fast as possible in which if they ask for more share of the cake, there is nothing in doing that.

Maybe the form of operation is not the same as the bank as usual, maybe its form is only transaction supervision only

Why do we need banks to operate it really does not make any sense,i am sure you really do not understand the concept of bitcoin,the possibility to keep millions of dollars in you own hands without much of a worry and without the help of a third person,you control your own money and that is the reason everyone is interested in bitcoin.

I'm sure Bitcoin will be operated in the bank in the future because bitcoin makes it easy for me to transact in selling or buying online and others.