Bitcoin Forum

In discussion with regulators and financial technology firms about bringing bitcoin "into  play"

The source If anyone is interested to read more: http://www.cnbc.com/2017/06/26/barclays-bitcoin-regulators-fca.html

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I sadly don't believe that the banking system will ever adopt bitcoin, If they start doing so, It would be for a particular reason they hide (most likely to eventually control bitcoin). The maximum that could happen right now is making bitcoin legal in some countries.

Large financial systems such as Barclay's will be very careful of applying bitcoin to their bank.
Because this is a big bet that can make them more interested customers or abandoned customers.

Recently we heard news about some banks in Norway accept bitcoin payments and integrates bitcoin into customer's accounts:

"Norway’s largest internet-based bank has added a new feature tethering bitcoin accounts to the company’s web bank platform.
Skandiabanken customers are now able to access Coinbase accounts giving members insight into their digital investments alongside their savings and checking accounts."

More info: https://news.bitcoin.com/norways-online-bank-bitcoin-accounts/ (https://news.bitcoin.com/norways-online-bank-bitcoin-accounts/)

It's hard to know exactly what "in play" means for Barclays, but the obvious use is so they can sell Bitcoin as investments to their customers. They can create a mutual fund or trust or ETF or all sorts of other investment vehicles based off Bitcoin.

This is interesting news. The SEC only has jurisdiction in the US. So if the UK FCA authority on investments, if they were to approve formal access to Bitcoin, would open the door to a lot of new investors, and subsequently a boom in price.

Now if they could also get Litecoin "in play" we'd really be set!

One among the largest chained network in the financial ecosystem with plans of using bitcoin is a good news. This will gain more popularity among the people, because in the western nation every people somehow have a link with Barclays, whether it's some investment or some sort of saving doesn't matter.

There was a discussion somewhere around here

And it kinda looks they are just using some gateway to Coinbase accounts of their clients (or something to that tune). In layman terms, this is nowhere near to receiving bitcoins to your real bank account. Aside from that, there were numerous concerns if this bank is actually a regular bank and whether it has the license of the Central bank of Norway for conducting banking operations such as, for example, lending money as well as opening checking and deposit accounts

I think the bitcoin implementation can cut the costs to the banks. So they might embrace it.

The banking system was designed that way, It's evil. They don't care about the people, and they don't care about the costs as long as they can enslave us. Bitcoin represents everything that the banks are against, they simply can't work together. If they can't stop it or control it, then we will see some laws in the future that prevent us from using it which clearly mean that some exchange will be shutdown etc. but that won't stop anyone from using it since that's what the decentralization was meant for.

I think I will open a bank account at a bank that are as open-minded as they are with this. This shows that they are changing with the needs of the customers and that they are trendy and working with innovation and not against it. The thing that worry me is this : " "We have been talking to a couple of fintechs and have actually gone with the fintechs to the FCA to talk about how we could bring, the equivalent of bitcoin, not necessarily bitcoin, but cryptocurrencies into play,"

I just hope that they will go where the mainstream of merchants and customers are going and not do something on their own, with a centralized concept. ^hmmmmmm^

Exactly. It might as well be China or Russia's centralized crypto for all we know.

I find it odd that any commercial bank would want to offer bitcoin as a service. What are they going to do with bitcoin deposits anyways? They can't get interest because bitcoin does not work on the model that fiat works on where middle and lower class people gets into debt and the banks take every cent of the profit. And who will deposit bitcoin into their bank? The whole idea of bitcoin is to keep your savings from centralized bankers, not to deposit it back into their hands...

I would say that it is far more likely that they are just going to create their own cryptocurrency which is centralized, to represent fiat value. A bit like Tether USD. So that all records are public and there to audit, i mean it's better than not having crypto at all, but still.

This is not about bitcoins as such

This is about fiat that banks will be receiving while selling bitcoins to their clients and moving the coins to their deposit accounts. Obviously, the banks would earn on spreads just like they do with foreign currency exchange operations. Selling paper bitcoins is another option. Bitcoin in this case would work pretty much like unallocated bullion accounts. For example, with these accounts, you can buy and sell gold as well as other precious metals, though the bank doesn't really have any metal in these accounts. It is kind of "paper gold". You just sell and buy some amount of "metal" using the price which somewhat follows the market price. Banks could offer similar services for Bitcoin

They are not likely to use actual bitcoin, more likely just a blockchain implementation to reduce their costs.

I would even argue it may be irresponsible to run a banking system on the public chain.

Banks will never go well with bitcoin...


Agreed. There is a direct conflict of interest for the central bankers to start accepting bitcoin in their business model. Have you heard that bitcoin traders were basically denied bank accounts in australia a few years ago, and existing bank accounts were frozen? If not for the laws in place, then that would have been the end of bitcoin trading in that country. As people said, the main point here is that they're not even saying that it's going to be bitcoin. It may be any altcoin, developed by whoever. Might even be the bank themselves.

The current system of international money transfer through SWIFT is too much of a hassle. Sometimes the payments gets delayed by up to a week, and on rare occasions, the transactions are lost without any trace. That is one of the reasons why the banks are experimenting with new technology such as Blockchain.

Would be good if banks accepted (for example) incoming transfers in bitcoin. You get into your banking account online, obtain a btc address to send your btc, and then the transfer is stored in fiat.

Actualy I think this is very likely. Banks are all about profit and tgp saw the big opportunity to earn with Bitcoins. Maybe they will not go with this in public and publicly they will keep their attitude against Bitcoin but secretly they will test it and implement it for their.own profit, that wouldn't surprise me.

Maybe in the future, such type of integration will be possible.  I have to keep an eye on Japanese banks, they are closely bonded with bitcoin exchanges.
So they might have this option available sooner that we think. There is a rumour that Japan largest bank will turn a simple credit card into digital/cryptocurrency platform.

https://www.cryptocoinsnews.com/japans-largest-bank-turn-credit-card-unit-digital-currency-platform/ (https://www.cryptocoinsnews.com/japans-largest-bank-turn-credit-card-unit-digital-currency-platform/)

I think that a bank can surely adapt bitcoin normally and there are certain exchange with other currency then why can't bitcoin be part of it? well in our country I am using a wallet that are supported by a bank I can certainly withdraw my bitcoin and converting it with fiat in an ATM using a cardless transaction by providing me with a 16 digit number and a password to withdraw my bitcoin, I think they can work together in some other way a bank can surely profit with it.

If we assume a decent number of people end up using Bitcoin and friends then there are gobs of money to be made by banks in that space. The need to interact with fiat is never going away. There's money to be made processing it, storing it and converting it.

I do wonder whether they'll have the balls to acknowledge that Bitcoin itself isn't going anywhere though. Someone will eventually.