Bitcoin Forum

The possibilities of higher adoption is coming faster than we expect. I believe the banking sector is beginning high level consideration of having bitcoin as a financial too in their platforms and this is going to create more growth in demand for bitcoin. Obviously the price too will begin to soar.




https://news.bitcoin.com/10000-financial-institutions-customers-buy-sell-hold-bitcoin-bank-accounts/

What views do you have on this?

Adoption is great, but shouldn't come at a cost, the cost of privacy.
Bitcoin was effectively created to give hodlers the freedom banks do not. As a trustless network one did not need a middle man or agency to buy or hold their assets.
Storing a decentralized currency with a centralized agency defeats the purpose and gives the government assess to your assets.

It sounds like you will have a credited number of Bitcoin that equals to the money you use to buy it with bank account.

The main source is from Financial Institutions Can Now Provide Consumers Easy Access to Bitcoin via Fiserv and NYDIG (https://nydig.com/about-nydig/news-press-releases/financial-institutions-can-now-provide-consumers-easy-access-to-bitcoin-via-fiserv-and-nydig/)
First, it should be centralized platforms and also connect to banks, not good.
Second, who are owners of private keys for those Bitcoin addresses?

Two big questions and I guess the answers are not good actually.

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It can help to bring Bitcoin to mainstream, more deeply and faster but it is not good if you are care about privacy and anonymity.

satoshi created Bitcoin to beat the bank system and now people want to connect their Bitcoin with bank, hold it with bank control. Terrible idea.

This will happen for sure. Banks cannot be blind as to the demand of the people. They want to make money and remain relevant, they need to acknowledge that Bitcoin is rising and that it is now being treated as either an asset or currency. Either way, they will make the most of it. The banks can easily adjust. They need not be very adamant as to remain in their old setup despite the changes in the world of banking and finance.

That will still be the same as having your coins on exchanges meaning that it's not your keys then it's not your coins. Also, isn't New York planning to ban bitcoin a month ago, what happened to that? On an unbiased standpoint, I think this offer by the banks is a pretty good one because it can help people that are curious to try bitcoin but have a hard time navigating and managing their own bitcoin, this is pretty convenient.

This is not wrong at all, bitcoin was created in a way people can have control over the coin they have without any government or central body interfering, but it is becoming that only few people are after privacy, most people just want to buy bitcoin and hold, they do not care about where to hold it or not, people that are even buying bitcoin nowadays do not know about privacy. This may be becoming worse in the future making decentralized currencies like bitcoin to be used in a centralized way. It is helping in adoption, but absolutely lack privacy which makes it not advisable, holding should be on noncustodial wallets.

This seems far too vague and it doe's actually give a timeframe on when it will be released. Banks already have some of the highest security on the planet, so it would make sense for them to work out their own systems for offering Bitcoin rather than doing it through this relatively obscure third party service. Heck, banks right now can refer any customers who want to benefit from speculating in Bitcoin over to paypal in some countries and eliminate any potential risk from hacking liability. Few people seem to appreciate that Bitcoin is actually a threat to banking institutions because it allows decentralizing "accounts", so I don't see them being overly eager to promote it and they might engage with already experienced exchanges if they had to do that.

Good - Mass adaptation wise since many people can access cryptocurrency directly through there bank accounts.

Bad - For privacy. Like trant post above, Bank will force user to have the full control of the account as well as tracking of each transaction due to regulatory compliance.  

There's a pros and cons to this news but I believe what matters is the long term future of Bitcoin which is the mass adaptation.

If ever that will come to life sooner or later, we should expect that bitcoin's influence will spread much faster. Banks working with bitcoin and having mutualism towards each other could be the start of the revolution of a new era of currencies. If ever that happens, even those who do not seem to have any interest about bitcoin will be forced to learn about it as it becomes part of the bank and for sure, they will be suggesting that. Investments in bitcoin was deemed much better than in fiat so it will surely make a difference in the making.

I don't think banks have the right to give any choice regarding the Bitcoins we have today. logically the bank does not have any control. isn't the bitcoin business just me and bitcoin. no third party interference, not even the bank itself.
I can't agree to it at any time, we still maintain our ownership of bitcoin rights and the freedom to make transactions as we want.
and if the bank tries to control it all, it means it is against the first rule that bitcoin is not centralized.

Banks will stay away from a system they have no control over. Bitcoin is not controlled by anyone, bitcoin is not a centralized platform and Bitcoin has transparent transactions that are recorded on the blockchain and can never be deleted. To carry out further adoption of Bitcoin is still impossible. However, it is possible to use Blockchain as a superior recording platform.
The pros and cons of bitcoin adoption will continue.

As stated by the majority, this particular event is beneficial for the Bitcoin mass adoption. Through banks, promoting thru the availability of such option that has to do with Bitcoin, people can be enticed to indulge in exploring Bitcoin. I agree that this step taken by the banks is a way to make themselves still relevant amidst the emergence of centralised currencies. However, in the situation where banks act in between of the people and Bitcoin transactions, the total ownership and privacy as mentioned by the others, are being interfered. Whereas, solid enthusiasts won’t be pleased and become fond of such.

Why do people need banks to hold, sell or buy bitcoins? What's wrong with being your own bank? Makes no sense at all. Bitcoin is a decentralized currency where you have full control of your own money/coins. If bank starts to get involved, it will no longer remain centralized. You will no longer have your "financial freedom". You in fact won't be the owner of the coins. The bank will be the owners. Remember, not your keys, not your coins!

The adoption still in progress and it is running well. I doubt that the banking will allow that in their platform unless they have an agreement with the government because that will depend on how good the government reaction to bitcoin. Besides that, I think that will not implement in the near, especially if the government does not yet approve bitcoin as another payment option. But that can happen in the future as the digital era will be more developed than today and the bank with the government is ready to integrate their system with blockchain.

Good to hear that banks finally crypto, but it's going to be custodial one, so there's no difference from the money you put in a bank. And it defeats the purpose of decentralisation, but others could view this as safe because there are investors, specially those early bagholders who lost their bitcoins because they didn't safeguard it.

On the other hand, we have a saying here "BYOB", so for me there's nothing wrong, but I still prefer to have and hold my own bitcoins and having total control of it.

As on the bad you pointed out, nope I don't think so. I don't think banks will make it mandatory or force users to have control of their hodlings. They might make it optional for those who are not capable to handle it. Remember there are also certain people who don't actually like the freedom and privacy that bitcoin decentralisation covers.

Actually, the Banking system & Bitcoin both of it is working as a complement to each other here. If the banking system provides freedom in Bitcoin transactions, people from all walks of life will be better acquainted with Bitcoin and the use of Bitcoin in daily life will increase. This is very important for the mass adoption of Bitcoin. Again when it comes to privacy, people use decentralized platforms to avoid bank harassment, because no one trusts the bank.

So, I think, when the mass adoption of Bitcoin will happen, paper money will gradually disappear. Future generations will be users of "decentralized electronic money".

It might sound like a terrible idea because it takes us away from decentralization but on the other hand I think that people are already convinced that the US dollar is losing value. Americans are interested in investing in bitcoin trusting their banks, otherwise these solutions would not exist.

A common investor in bitcoin could buy bitcoin in Coinbase, Kraken, Geminis among others but an Institution or a wealthy person would be a risk to invest in these platforms for their security, they need services, privacy, and investment strategies.

This was always inevitable. Banks won't just stand by and watch crypto exchanges make all the money.  Overall this is a step in the right direction.

Banks are starting to accept the presence of cryptocurrencies, this is the beginning of the magnitude of cryptocurrency, I am sure some banks in the world are also starting to adopt bitcoin, slowly but surely they will cooperate with bitcoin, it makes it possible to realize payments with bitcoin. As expected from bitcoin.

I do not understand, how is bank bitcoin adoption makes it possible to realize bitcoin to be a payment method? Even before banks in some specific countries were accepting bitcoin as a form if payment, bitcoin has been used for payment, you can use your noncustodial wallet to pay someone in Bitcoin, it is not necessarily mean without bank, bitcoin can not be used for payment. I am not saying banks accepting bitcoin as a form of payment will not help in Bitcoin adoption, but bitcoin can be used independently not depending on any centralized system.

Well, I like the idea that banks are moving to the next level of adoption. Crypto space now is getting bigger and wider, banks adoption could make the system build stronger and they are also benefiting this one. Instead of showing no interest in crypto and work against it (before), it is best to go along with the market changes and listen to the community.
We are not living in fiat forever and embracing digital innovation like Bitcoin is heading for a better future and new lifestyle.

I guess the high adoption of Bitcoin by service service providers comes with low privacy protection of Bitcoin users; you don’t expect the bank not to ask for customers’ details for Bitcoin transactions. This has diverse negative effects on customer privacy.

Bitcoin’s original intent is to provide some level of privacy for its users.

+1 for this we already have control over our crypto we own our wallet and could sell our crypto whenever we want through exchange.
We don't really need to give out our privacy for it.
It is like giving out our control over our own money again and relying on banks again.

And the truth is adoption won't come without a price to pay, and given up privacy is part of the price to pay, this is inevitable however distasteful it may be, already the privacy thing has been gradually overlooked as a result of the influx of the institutions coming into btc to invest, the moment the financial institutions come on board privacy will become a thing of the past or rather it won't be as private as it should be, but then btc will be well adopted, can't beat them you join them sort of thing.

Banks have started to do so and they have to do it also. Because this is very crucial for their future I believe. If they all don't want to bankrupt at some point, they must accept digital currencies. And it is for the benefit of them if they start doing it right away. When fiat money becomes worthless, they will continue with digital ones.

The problem here is that, it might take a longer time before this is accomplish and banks would always find a way to regulate it price. If this is enforced, the government might also decide to link it to one's bank account, making it easier to track the cryptocurrency assets of an individual limiting the freedom of privacy crypto traders are enjoying now.

We all know that the future is bright but we still don't what it has to offer in terms of security that is enjoyed now and liberty and quick assess to one's funds without seeking for approval.

And that's precisely why the banks want to find a way into the picture, as they do with assets that can't directly regulate; Creating a faux need for a middle man and then filling that gap, even though it's not needed as this is a P2P network.

I think it's more a case of people being lazy, than loss of privacy being inevitable. Bitcoin was designed to be private and yet it was adopted during it's early years (without institutional backing), and that adoption grew enough to attract banks, funds, companies, governments, so it can very well keep growing as it is, only maybe at a slower rate.
Users give up their privacy because they never really valued it and only use Bitcoin cause it has speculative value and not cause of its qualities.

I think not only being lazy, but some of them is trusting the bank with their funds more than themselves. If something is wrong with his funds, he can always ask the bank about it and recover whatever is the issue with his account. At least, he has help and if he is the one holding the keys, he has only himself to recover what was lost. Some people just want other people to handle their funds and not be responsible about its security.

Simply because if Bank accounts have it, people can also store Bitcoin in bank accounts/wallets and perhaps benefit from the same deposit protection that they do with fiat (all banks in countries protect deposit with national insurance). Not that this is totally good since it defeats the purpose of Bitcoin which is to be in full control of your money but for most people, this is what they're looking for when buying crypto.

It would be better you tell us in which country is this news from, you actually raised my hopes, because I thought my country, who had banned bank activities in relation to crypto-currency activities, regardless where this freedom to run crypto-currency activities without the government clamping down on you like a person with felony charges, it always excites me .
I think the crypto-currency to bank transaction is becoming safer, because I had a friend complaining to how he sold his bitcoin to a vendor he saw their advert on line and never got any payment for it, I don't have such experience but if this can happen then bank allowing crypto-currency transaction may be better for the likes of my friend.

There has been banks accepting bitcoin and providing some crypto services, I remembered I read many of such news mostly in 2019 about few banks in USA starting and providing crypto custody services.

CBN only ban bitcoin in your country, it is not banned by the legislative signed by the exicutive, so you still have right to do anything you like with cryptocurrencies in your country, but not linking it to bank transactions like buying cryptocurrencies from crypto institutions directly using bank cards, such transactions will not even be successful.

Using vendor can come with risks, why not use a reputable exchange for it that can serve as an escrow. Bank crypto custody is not safer than a mean privacy will be lost, I do not against it but I will advice people not to try custodial services, noncustodial is better for total control and privacy.

P2p is better while the same aim is achieved but privacy is intact especially if it is decentralized exchange, but for convenience, zero fee, fast transaction with high volume and high liquidity, custodial exchange can be of help, and yet no direct link to bank, but though no full privacy and no total control.

No one would be surprised if this happened.  Banks cannot be blind to the demands of society.  The bank wants to make money and stay relevant, the bank also needs to recognize that Bitcoin improved and is now treated as an asset or currency.  After all, they would make the most of this opportunity.  Banks can easily adjust.  They are easy to adjust to this situation.  Because the main goal of the Bank is to make a lot of money, and they have to recruit a lot of customers.

One thing that can be certain when the banking sector starts these business is the trust level we can have when they conduct business and you do not need to have sleepless night about the wallet hack and even if that happens it will be insured and since the cryptocurrency market has witnessed many scams and hacks and these centralized banking wallet will help people who are lazing and looking for centralized wallet.

Wow this is a pretty cool article, thanks for bringing it to our attention.  I think that it is only a matter of time before we see most, if not all banks bring the ability to buy/sell/trade bitcoin and other cryptocurrencies.  As someone whom works in the financial field, I have slowly seen financial institutions come out in support of bitcoin/cryptocurrency as well as flat out state that they plan to "get in to" the market as they are hearing a lot of request from their customers.  That is really what it's all about, if there is a want/need, and the banks can make money off that want/need, then they are going to find a way to do so.

Adoption of bitcoin is really increasing and I think Banks allowing people to buy and sell on their platform will help to gain more trust from the people to cryptocurrency. But what about the privacy and decentralization of bitcoin? Well, whatever the outcome, I am also happy if banks accept the digital currency because it will be the proof how much successful and useful the cryptocurrency nowadays.

It's actually great when banks have this your if your able to do this with your banks and that could actually give you a lot of versatility to where you could put your money or if you want to transfer or withdraw your money.

That thing you easily be done in this kinds of services, but mostly the thing about this is it will become centralized and you have no control over your funds and that's not a good thing for some investors or holders since they want to have the private key to their own wallet.

Doing centralized or decentralized has both pros and cons but there are also people who don't want the responsibility, for example, if you lose your password or pin code you could just go to your bank and verified it then they will give you a new one, in the decentralized wallet if you lose your private key there's no way to recover your bitcoin anymore.

I agreed that banks wants to tap into the numerous opportunities abound with Bitcoin demanded by some society which is absolutely a good development meaning more adoption of Bitcoin however a lot of Bitcoin enthusiasts are primarily into it because of it privacy and store of value also avoiding a third party if hodlers decided to embrace depositing with banks those those features will be eroded however I believe this is a matter of choice hodlers who does not values the mandatory  KYC requested by most banks can deposit there Bitcoin with banks but I am very sure of people choosing their privacy as the most priority.