Bitcoin Forum

They need bitcoin to use it reseve asset.
So if. China bank needs eur currency they dont need direct buying or exchanging china fiat to eur or find correspondent intermediary bank to do transactions.

They can do the transactions with btc or eth works too.
Btc can replace all wire and swift transfers between banks.
When jp morgan want to send funds to japan they just send btc their wallet.
And its a instant world transactions

Banking institution are under the regulation of the central bank and central bank is created by the government, so why would a government allow bitcoin to be a reserve, it's risky asset and banks are usually insured by the government so it does not really make sense.

I understand that other private institution are doing that, but banks, I doubt they win.

They would create their own centralized digital coins but would not trust or allow bitcoin to be their reserved.

If tgey are scared of btc price up and down then they can use stable coins. Like. USDT as reserve currency.and as reserve assset USDT Can fix price risk problem for banks

Banks can put as many prohibitions as they want

But even they can't really prove that x y or z transaction within their bank was done to BUY or SELL bitcoin, p2p platforms that connect bitcoin users in a certain country help "hide" this part from them, at least until they embrace btc or are taken out of the equation entirely.

Yeah, but what if China doesn't want to spend money to buy EUR?
They can just print more of their fiat money and buy some EUR.

They cannot just print some more bitcoin to buy EUR for free ;)

Central banks also wants to control inflation rates at their will. Inflation is basically a tax on money holdings (https://www.economics.utoronto.ca/jfloyd/modules/inft.html). If they decide to use BTc, they will lose that extra taxes.

They can also control the economy with inflation, and they would lose that control if they convert to btc.

Demand for BTC will not come from government or bank, but from the people and other companies.

If not btc then USDT

Lol! It really doesn't matter what we think or what banks think! The banking system is a highly regulated system and it all matters what their respective government wants! If a government is open to crypto system, then you will see banking system adopting cryptos and vice versa. Till date, we couldn't find any single government who are open about the crypto system's inclusion to banking system. Rather we have seen strong resistance from many governments around the world. If you know Ripple, they are trying to hit this exact gap by enabling their clients to send funds worldwide through their cryptocurrency and as far as I know there are few Banks in their client list.

But even if the cryptos are a good value proposition for the banks in regards to the global money transfer, I don't think they will be using it in any way because cryptocurrency removes the need for an intermediary and banks do exactly that! So it's a threat to their business!

I agree with you, with the recent rally in bitcoins and shift of institutional investors switching into crypto currencies. There is no way around it for central banks. Sure they are going to try and create their own digital currencies, but it is all about the investors willing to put money in them.

It's not as easy as you say. Bitcoin is decentralized and banking is centralized. so, I am not sure that they will openly need Bitcoin. So far, even in some countries, the use of Bitcoin as a means of payment has not legalized because it is possible that the bank will find it difficult and complicated with the arrangement and payment methods with Bitcoin. Moreover, banks are once again under the rules of a country, so any decisions must be based and there must be a legal umbrella. And of course, this will become complicated again with regard to the regulations.

What they usually do is adopt a blockchain technology system. So that they can reach customers and needs more quickly.

Yeah, that's what we can easily think but the banks won't just rely upon an asset like bitcoin. Few of the banks are recognizing it as a good asset but not all of them see it as what those few banks look at bitcoin.

Your description literally says that there's already no use for fiat because we have bitcoin. But we're good from what we can see with bitcoin, is used for transfers and investment whichever is the best for you.

Instant, that word would be some people will argue to you because it isn't yet but it is safer than other transactions. They adopt or not, bitcoin or blockchain or both. We knew that someday bitcoin and blockchain technology will keep growing and it's just started being noticed by these corporations.

This is difficult to achieve. The credibility of Bitcoin is far from the level of currency or gold. Even if the bank holds Bitcoin, the public will not accept it.

It is difficult at the present time for governments and banks to accept Bitcoin because they are completely against it, Bitcoin is decentralized while the government and banks want centralization and control so I think that most governments in the world will not move to bitcoin but to digital currency because the digital currency is centralized and this is what they like, so I think in the future Near all governments will work to create their national digital currency.

Before public will refuse/not accept bank controlling Bitcoin, they can't do it since it's decentralized.

But if you mean Bank, institutional, entity, companies, or government want to holds (buy) Bitcoin, they can... just like we (someone) can buy or sell Bitcoin on an exchanges.

There isn't a lot of world bank to go around though, AFAIK there is only one World Bank and that is its name. Maybe OP is referring to national or state held banks.
They have to be careful about considering this though, cryptocurrency is still volatile as it is so governments can't simply jump in with the public funds because they know that there will be a backlash among the populace. CBDC is some sort of control experiment as to how will the public react when they implement this kind of thing.

This could be an easy thing if the government were to invest on creating more Special Economic Zones to do some economic experiments like UHC(Universal Healthcare), UBI(Universal Basic Income) and the topic of today which is a Cryptocurrency Dependent Economy. It is not a matter of credibility because bitcoin has proven itself time and time again that it can bounce back and that a hope for a stable market is possible. Banks will not hold bitcoin because it does not generate dividends like stocks when they are holding it and it is also their natural enemy, not to mention that governments will not do anything remotely close to this because some of them do not see how this kind of things could help them stay in their position in the state.

the governments know bitcoin is promising so they are coming for it. I think the governments will always will in that we are governed by them

^ That is not easy as that, government institution who is always wanted to regulate all form of currencies under their control and knowing that BTC is a decentralized nature that no one will have control. As long as BTC is not regulated yet, the government will not able to adopt this currency, they always afraid of the threat caused by BTC. Banks are under-regulated by the government, I don't know if they will use this.
Nevertheless, probably the time will come that the government implement regulations through the users of BTC but not directly to the BTC itself.

I believe it will not happen, banking are purely for centralized system, not for decentralized.

Maybe other institution but for banking institution, that's a complete insult to them.
Government, banking institution, and other related business all of them are regulated, once regulated it's always centralized.

They would not trust bitcoin on their future because reserve suppose to be stable, strong, and not prone to manipulation, bitcoin does not possess all of that.

Banks need to admit their defeat and let their clients have these very simple things:

• No restrictions when moving fiat in/out of exchanges: my money in the bank, my rules, if I want to buy crypto that's my business not theirs
• Insured custody of crypto holdings for investment, inheritance and so on
• Collateralized loans where I can lend/borrow against my holdings

If they don't offer these services new fintech companies like Nexo, BlockFi, neo banks like SEBA/Sygnum, will eat their crypto-friendly user base.
The battle is over, they lost. We need banking services to unlock the full power of our crypto with no hassles.

and it looks like it will happen, where big companies have started investing and buying bitcoin, let's call it grayscale and skybridge have started to do it.
It looks like the mass adoption of blockchain and crypto will begin this year.

Banks need waaay higher TPS capacity than BTC is currently limited to. It wouldn't work as a global currency used between banks. Moreover, banks hate freedom. They like the exact opposite.

Between themselves as banks? Yeah, maybe they'll send BTC. But not between banks and citizens or just between the latter. Banking system publicly integrating Bitcoin is a wet dream of many, but it'll likely only remain a dream.

The main problem with is that bank being regulated by centralized authority do not have individual control over their working rather their decision are influenced by the government they are working for.So it's in the hand of government to choose btc as their centeral reserve assest along with the fiat because you cannot ignore fiat completely due to the volatile nature of cryptos and they need to have a fixed amount of funds according to their financial standards.But what most government think is not to loose control over financial system of their respective countries that's why they are not in favour of these decentralised currencies and try to create their own digital coins like China is planning to do so but their utility will be limited to their respective jurisdiction unlike btc which have global access over the internet.So who knows what step they are trying to make in order to gain more power over the globe its their choice but one thing is sure btc will rise to the moon irrespective of any element.

Banks does not need bitcoin, people needs bitcoin for them to survive against a high inflation in the future due to th debts of our country. Bank is just an institution, they are a profit oriented institution and they usually make money from loans, bitcoin has nothing to do with their business, but if they will start to accept bitcoin, then that's a success for humanity because it means our government are also embracing cryptocurrency.

I agree with the statement. If central bank and government will use that kind of method how will they regulate the money? I bet they won't do that. Fiat currencies are way too different with crypto and government can't just put their assets into a thing that is not controlled by anyone or anything. They won't like uncertainty. Central bank has a different concept from bitcoin so the future is bleak in terms of government institutions relying on crypto.

why would china bank need eur or other currency ? and if they need eur why will they consider btc and eth when eth and btc is not a eur . banks or online banks rather are now high tech and you can now automatically send your fiat to another form of fiat but of course eth , btc or any crypto is still the best choice but it will be hard for some banks to accept it but still possible and infact there are now banks that did what you were suggesting  or using cryptos as reserve funds/asset .

What makes you think this is something they want to do? Banks and governments are trying to find ways to stop people from getting into this market and you think they will suddenly begin to use bitcoin to try to solve their problems? This is not going to happen, even if bitcoin were to drive them into the corner they are never going to recognize that bitcoin is better, since that will be the equivalent of recognizing that the last decades of fiat money have been a terrible mistake for the economy, and even if that is true if they were to acknowledge it it will be the same as admitting a level of incompetence so high that it is difficult to even understand.

One way or another, China is an active member of international trade relations, where, in any case, settlements are made thanks to the dollar or the Euro. When China reaches the world level with its national currency, then the situation will change. But today they should only use the currency that is acceptable in international trade.

Im not sure that banks really think so. Sure, they will use blockchain technologies but not a bitcoin itself

I couldn't agree more, because if government think that Bitcoin will be solution. They show us that for several decades we use the wrong regulation. The inflation that is created by Fiat has made many people in the world become poor, and if it will happen so societies can't believe on government anymore even there will be crush. Bitcoin will never be solution for government because the government has big ego. How can u hope that the government need Bitcoin , even in the reality the government make the digital coin that can be competitor for Bitcoin it self.

See the thing is it is really not easy to make the banks accept cryptocurrencies like bitcoins. But undoubtedly they are the best options for the online transactions which are done beyond the borders. But the banks will try and then put their own commission on anything that they are going to provide as an option.

What banks can do is :
They can support the crypto transactions with the bank account without any interference.
They need to stop giving out statements about how they will close the accounts if they are connected with cryptocurrencies.  
They should work with cryptocurrencies instead of thinking of them as a competition.
They can not only save bucks if they decide to do online transactions using bitcoins but they would also do it in a much less time.
They can actually set up btc accounts all over the world , send the money over btc and then the other person can encash and send it locally. (I do think it would work really well )

Its easy lets say china bank and. Uk bank nedd to transfer
10000000 the big ammount some corp acc.
Then they just transfer btc or eth to each other wallets.
Simply done

Agree. In addition I think that banks would have to evolve and greatly to offer the services that we can currently enjoy with Nexo, BlockFi as examples.
Sadly when we prefer crypto than banks they are not stepping up to innovation and lagging behind. One solution could be as OP says that banks need bitcoin to restructure and offer us the services that we are already experiencing. And so all together we contribute to supporting our economy in any corner of the world.

We'll be getting there soon, this pandemic may have been a punch in the gut for most of us but us cryptocurrency supporters and investors are sure to reap the hardships we mustered this season just to carry on with our support, especially knowing that more and more people, and bigger figures at that matter by thebway, are seeing bitcoin's potential and opted to include it in their portfolios

Other government still didn't see the help it can give since they are blinded in the idea that they can't control it and because of that they just waste the opportunity that it can give to their people. The best thing to do is to invest, trade on our own to gain profit than to wait for banks, there are already big companies who use it meaning, the potential is totally in it.

I fully understand the caution of government officials, because public funds are not a field for risky experiments. Therefore, at this stage, the most important thing is that government officials do not interfere with the desire of large companies and the banking sector to invest in bitcoin and cryptocurrencies, because for example, for banks, it is permits from the financial regulator that are the basis of work.

Lol !! You Think banks now will use bitcoin and invest in it  :D

Please don't make me laugh, first of all banks hate cryptocurrency investors they deposit large sums of money in the bank and then wire it out to a wallet or brokerage that will convert it to Bitcoin.

Theirs no control on them or where the money did go or making profit of that transaction.

so when we see banks from all the world use bitcon ... let me say NEVER !!!

Banks are even scared, they have seen a high level of competition approaching with high level withdrawal and conversion into cryptocurrency by institutional traders. This is a challenge for banks and so many countries are beginning to put legislation against cryptocurrency but this will not stop the wave and financial revolution coming up.

Let's stop hoping that these banks would be using bitcoin as a "solution" because we all know it won't happen considering most of them don't trust bitcoin. Whats probable though is that these banks using the technology behind bitcoin to develop their system for faster transfer and making it secure.

Banks are buying secretly for sure but they can’t do this big time since they are regulated by the government and central bank, so they must comply with it even if they wanted to buy more bitcoin.

I’m sure banks already know the capability of Bitcoin and that’s why some of them already adopt blockchain technology and that’s a step closer for them to adopt cryptocurrency. Well, this market is not just about bitcoin now since there’s a lot of good project that can help banks on their day to day operations, and altcoins are good for that.

Again this blockchain not bitcoin FUD. I see that mainstream media did a good job brainwashing some of you by repeating that phrase over and over. In a way it's also the work of institutions themselves who heard about blockchain tech and not knowing what it is decided to go public with a decision about conducting blockchain research or appointing someone a blockchain specialist.
None of them know how to use blockchain without bitcoin. They only talk about it because it makes them look smart and allows them to explain additional expenses. The only coin they'll ever use is if they make their own centralized coin, like Libra and push it through all the commissions.

This seems nice about fiat to fiat how ever if you're making some transaction with fiat into crypto not all people are doesn't have knowledge about bitcoin or doesn't know anything about bitcoin people might get confuse about that this kind of good solution can only be implemented if people will learn from it. And if ever this "happens" it will make our life easier whenever we want to send money aboard. Let's all hope that this would happens because we knew that bitcoin and other crypto is the future of our world.

I think it's not as easy as that. There are also political factors. I personally think that the risk is too big. Today cryptocurrency market is still can be manipulated by big investors, imagine if there are some countries who manipulate the market to destroy other countries economy. I think world bank can use bitcoin if bitcoin is already accepted and used by people in all countries. That is a solution but not for now.

Nine world-renowned banks such as JP Morgan Chase, Royal Bank of Scotland, Goldman Sachs, Barclays, etc. are working with New York-based financial technology company R3 to establish a new framework based on the Bitcoin blockchain.

That will not happen.

In the past, they hate the main existence of Bitcoin because of how it pumps its value saying that it is a bubble that would pop, or a currency to be used illegally, until now. That is why I don't think they will be relying on bitcoin or any cryptocurrencies as their solution. They will find their ways for that solution and I don't think it will be these cryptocurrencies.

It's not easy, and most likely we will not see this merge! Banks don't need Bitcoin, they have their own system, and for us who are with Bitcoin, for sure we know that Bitcoin doesn't need banks, simple as that, with Bitcoin (and I must add some other good projects where you have your private keys) you can be your own bank!
Knowing that, this topic doesn't make much sense, and it's not what crypto stands for, in two ways... I explained the first reason, with crypto you can be your own bank, second and more interesting, banks are centralized, while Bitcoin (and some alts) are decentrealzied!

I absolutely agree, banks does not need bitcoin because they are centralized, in fact, some banks does express already their stance on crypto and some have already ban it with the order of the government.

Actually we have some some news that Nigerian government bans crypto.

https://www.coindesk.com/binance-suspends-deposits-in-nigeria-following-central-bank-directive

Of course it won't happen, if banks want to transfer, they don't need to have a real money to do a transfer, what they need is that they are a legitimate entity and a little tweaks in the computer on the numbers of how much amount that entity has is enough for a transfer, and they still hate bitcoin and there is no way that this banks will cooperate with their nemesis knowing that if they ever do so, they will fail miserably. I think they had already found their solution and it is not bitcoin or cryptocurrencies but they are trying to replicate the system which is by far they haven't been successful thankfully.

Yes, banks do not need bitcoins, banks operate on completely different principles and do not intend to change them. They will use blockchain technology, but not a decentralized cryptocurrency. Soon, their digitized currencies of central banks of various states will appear en masse, and it is they who will be opposed by states to decentralized cryptocurrency.

Yes, central banks in countries are busy making their version of crypto but it will not be the same as normal and decentralized crypto.  They will later issue their version which they will still manage.  So that it will conflict with crypto principles in general.  Several countries have prepared such as China, India to my country.  I will never believe Bitcoin will be needed by banks.  Because of their centralized principle they will not be violated.  They always feel that they must regulate the world economy.

For this cryptocurrencies needs to be regulated. Right now very few countries have regulated the usage of cryptocurrencies. The central banks of every country were under the control of the government. Upon this it isn't possible to make official transactions as we do through wire. Banks around the globe are into development and integration of blockchain into banking operations. Maybe in the future when things go regulated bitcoin might be considered by the banks for cross border transactions.

There are some that banned it and I agree with that, however there are some that is looking into it as well. There are banks that started to accept bitcoin deposits and withdrawals in Germany I believe, or there was a law stating that banks would have that option if they want to and I do not know if it started or will start in the future but at least I know that as long as laws will allow that banks will go into bitcoin as well.

And the amount of banks that are looking into blockchain technology is huge, sure that may not be crypto currency but that is the underlying technology so banks having their own blockchain would mean something for the crypto world and would be a credit to how secure and safe and fast it is compared to what we have in the world already. So long story short there are both sides of the coin, some that ban bitcoin and some that like bitcoin.

If because Bitcoin decentralization, the potential it posed for borderless and to remove what hinder it to be mainstream of payment was the reason you believe cryptocurrency must be regulated then I will consider you to still be naive cause we don't need the banks to consider Bitcoin now for if Bitcoin is regulated then what Satoshi planned when he created Bitcoin was destroyed by the community.
Having said that, we don't need the banks or government to regulate Bitcoin, and the last time I check they can only regulate its usage.

Myself too said about the regulation of the Bitcoin usage. Without regulation governments will not support the banking system to use it on mainstream transaction. Agreed, if the Bitcoin network is regulated then it is truly destroying the vision of Satoshi for which he made such a marvelous innovation.

Because of the increasingly attractive conditions for investing in what can be used in the long run, it may be possible to collect or purchase digital assets with various considerations of shareholders or others.

It is troublesome at the display time for governments and banks to acknowledge Bitcoin since they are totally against it, Bitcoin is decentralized whereas the government and banks need centralization and control so I think that most governments within the world will not move to bitcoin but to computerized money since the advanced currency is centralized and this is often what they like, so I think within the future Close all governments will work to form their national advanced cash.

They are not against it they just wait for right time

This is a very big word that All world banks need bitcoin now as a big solution. I don't think so because the world banks are not in a position yet and Bitcoin can't reach a position yet that there are no other options for banks. But there are some reasons for banks are to invest in BTC for more profit. But banks are against cryptocurrencies to keep their position in the market.

Banks not against it
They make money out of this
Btc transactions end up in banks

We understand the government's viewpoint when it comes to the decentralization of crypto currency cause they only want to abuse or cause more harm to the network just like they did with fiat by regulating crypto However, we need crypto to be regulate before it can be mainstream of payment and some governments have already supported it

I think the banksters have owned a lot of bitcoins for a long time! Because bitcoin is now entering a phase of universal acceptance... And when it is widely used, banks will start to use it as well as other cryptocurrencies... It's only a matter of time...

Workd controlled you dont walk dont run dont breathe without your masters permission
U wear mask if tgey tell you ! So if they really dont like btc they can destroy btc with one day.
Bitcoin is here mercy of bankers .

Some banks are against bitcoin while sons are not against it but what I think will make the banks totally support bitcoin is the government.
It not all Bitcoin transaction that end up in banks cause only crypto to fiat currency transaction that in the banks.

They are against only if they own guys or they get something
Life is business

If u dont stay alert wolf will come

In moving towards cashless society, the organization of finance minister and the central bank governors said they are working with international monetary fund, the world bank and the bank for international settlement to formalize the use of central bank digital currencies in banking system. With this it show that there need for cryptocurrency in world bank and our everyday banking system

We dont want cash less !!
We like cash

It may happen that some banks are secretly using Bitcoin to move money from one country to another, without a long process and inexpensive
costs. Because as we know sending money overseas through the bank, sometimes the process takes several days and the transaction fees are
quite large. So for this I agree with the opening post that all world banks need Bitcoin, even though they themselves don't admit it.

Thats the purpose of btc to provide liquuty to banks.

It's unlikely that banks are secretly using bitcoins... They also have all currency transactions recorded, and the same question will arise - where did the money go? Or how did it come to be? Moreover, bitcoins need to be converted into currency... In general, not a good idea! ;D

Bitcoin dont need to convert in currency if everybody use it.

Yes, but no bank uses bitcoin, that's the thing... For banks to start using bitcoin, they need international agreements, which means that most countries must recognize bitcoin as a means of payment...
I'm sure that will happen in the future! We are on the verge of discovery!

There is nothing personal if banks find it useful for business they buy it .
Lets forget about this old bs that banks are against
If banks see its good to use they use it

Remember bankers Re here for money wgat good for money they take it

Sorry, you are wrong. I doubt bitcoin will replace "wire transfer" or any of the banking system. What is going to replace those system is the blockchain technology, not the coins itself. Let me tell you one thing, blockchain and bitcoin isn't the same thing. It's the blockchain technology that bitcoin is powered on.
If they have no other choice but to use crypto currencies, then they will end up making their own centralized currencies. I doubt they will ever use bitcoin (unless the government starts to heavily and strictly regualate it!).

Perhaps now that big players are getting in, Banks might want to have a change of mind and hop in with the game but initially, I doubt if they will want to risk and take suhc a decision to hold Bitcoin.
Bitcoin behaviour in the past isn't not so encouraging for such a financial bodies to reserve customers money into highly volatile assets. The way bitcoin react and dump to news wouldn't want any one to take such a bold step but may be this year would be different. Though, on a second thought, what if bear market kicks in, how do you think institutional investors will react to dump. If history is to repeat it self, it will be bad on correction
(in my opinion)

Not just that.

Obviously they will not use cryptocurrencies themselves but the technology behind them. With what we have right now, having and maintaining Blockchain technology is really hard and very very expensive based on the articles that I've read. I don't think they can afford that and they would just stick to what we have right now.

     The idea itself is quite useful but impossible to happen. This kind of thought has already been brought up countless times in this forum but none has ever come to fruition. The reason why is that banks just want control together with the government. Yhat is why, never will they allow unregulated things to be legalized such as crypto currencies. One thing they might do would be to copy the technological advantage of crypto currency and apply it to their own. Shameless but what can we do? That's just how they are.

I am more embarrassed by the fact that a person wrote that btc can be safely used for fast transfers, only according to official data, just the visa and the mastercard process about 60,000 transfers per minute, and the bitcoin network is only 10, the eth, in turn, is about 20, well, the fastest is half a PolcaDOT with 4000 transfers and xrp with 1000, so I think btc cannot be used for transfers within the banking system :)

Governments sell themselves as the solution to our problems and they had been doing a great job not by solving our problems but at promoting that belief, whenever there is some trouble people always think that the government should do something about it, but truth be told governments create a lot more problems than what they solve and the crash that will come because of fiat currencies is so big that they are not going to be able to hide and blame someone else because they are the only ones that can print money, at least legally, and that is when we will begin to see people finally coming to terms with the fact they cannot rely on the government and that it is a good idea to separate governments from the ability to print money, and bitcoin will be there to take advantage of this situation.

Lol I don’t really think it’s going to work that way, the government themselves might not be investing in Bitcoin because it’s a very risky asset, except for private businesses, those are the ones that may decide to invest a percentage of their assets or money in Bitcoin and any other cryptocurrencies.

Though I have once seen a news that a government in a particular country, I think Germany, was going to set a new law that allows banks to buy and sell cryptocurrency to their customers, maybe that one would be possible. As for banks creating stable coins, I don’t know about this, the ones I have seen failed woefully.

Don't forget about frauds, as these people can also use this as front to make money laundering.
Not just risky as we are speaking here through bank assets which Bitcoins can never be part of that system.
Also Bitcoins has the fact that not all countries across the world finds this as useful as the other was.
They just see this as illegal matter and shouldn't get involve with.
(Government > Bank >? Bitcoin = XXX ) -Quite a representation that I made LoL :P

I don't think this is the answer. Remember, banks are centralized organizations, meanwhile bitcoin is the complete opposite. Complications and problems will just arise if the banks would adapt bitcoin in an instant. Banks are regularized by the government and bitcoin isn't. Surely, arrangements would be chaotic especially regarding payment and transactions.

Up to this date, we can hardly find a government that accepts bitcoin without reservations. Most countries are still aloof with the idea. Some even banned and made bitcoin illegal in their place. There are specific rules and regulations set that are need to be followed by the users in countries where bitcoin is somewhat "legal". In addition, I don't think banks really do need bitcoin since this is just an alternative form of currency (though they don't treat it as such).