El Salvador Launches Bitcoin Bank

[Franctoshi]

Hello bitocointalk 👋

I saw his on X (former twitter) and wants to share it here:

https://x.com/BitcoinNews21M/status/1971439588716707936?t=T70OTXeO8SommhpGWSfxrw&s=19

El Salvador is really doing great away from legal tender now a Bank! I give El Salvador their flowers !

Bitcoin do not need that middle man, But I think El Salvador is trying to leverage from the system already created by offering its own crypto services, such as selling of Bitcoin to people (exchange services) and or offering of crypto loans, but many will still fall for this by giving them their assets to manage, whereas Bitcoin has come to eliminate the middle, and you are now your own bank, but a lot of people seem stalked on the old tradional banking system.

[Alphakilo]

Truth is that if truly Bukele is doing all this regarding Bitcoin and his country, I personally don't see it as an achievement because definitely the country is still suffering and the government is sophisticating in the country and his building a history for bitcoin instead of economy. bitcoin basically is not fiat and shouldn't be having a bank like they are making it now, I'm just not understanding how it's becoming for the bitcoin world.

If you get to understand the underground work that is ongoing in the country of El Salvador to better their economy using Bitcoin and other digital assets, you would be baffled, but let me share a bit of the progress they have made this far.

While the country of El Salvador lacks a Bitcoin/Cryptocurrency Reserve Bank unlike the U.S, it does have a national Bitcoin office that helps manage a formally acknowledged Strategic Bitcoin Reserve.
The country also recently passed a law that would see more regulated private investment banks created, just so that digital assets and Bitcoin can be used and it is distinct from the regular commercial banks.

This i believe is a fact that El Salvador is building their economy and with the progress so far made, this Bitcoin bank is just a tip of the iceberg.

[Scarlett_23]

I don't want to use the services if they're available. I feel it is better that I keep my Bitcoin in my wallet and control by myself. That will be safer than letting other parties manage my Bitcoin. Not to mention the trust in the banks that is reduced because the banks will be in the hands of the government to monitor people's transactions. Maybe the banks can provide interest but that doesn't mean for me because I don't feel confident using their services to save my Bitcoin. I prefer to handle my own wallet although I don't get interest but I can make a big profit in the future.

I share in your thoughts mate. It’s always safer when people prioritize self custody as regards to Bitcoin storage, because you can avoid a lot of thing, when you store your bitcoin in a bank, it’s just same as keeping your bitcoin in a centralized exchange, meaning your funds could be stolen, frozen or even monitored by the government which goes against one of the core principles of Bitcoin, decentralization and financial sovereignty, I mean that was why bitcoin was created in the first place, and not to just hand it back to an institution to help you store it while everyone is capable of safely storing their Bitcoins.

Banking services are suitable for fiat currency. However, it is a matter of thinking about how suitable this service is for cryptocurrency or Bitcoin. First of all, it is very volatile in nature. The price that is kept today can go down or go up much lower than the price tomorrow. How banks will bear the price parity is the most important thing. Banks are definitely controlled by the government, so it is in the hands of others. But the main thing about Bitcoin is that it will not be controlled by anyone, its control power will be in the hands of the user only. Therefore, it is not known how effective bank management will be for Bitcoin. It is very important to keep the Bitcoin seed secret from hackers. How much security the bank can provide is also a question. That is why I think Bitcoin holders will be afraid to take this opportunity.

[PX-Z]

So basically, how does a Bitcoin bank actually work? Is it just like a custodial wallet but meant for people who don't want to manage one themselves, especially the old ones, maybe with insurance coverage on top? Interesting move though, El Salvador always finds a way to surprise us.

[Fivestar4everMVP]

I have no idea on what a "bank" should work for bitcoin. Did they will provide some interest, financial product or something similar for people depositing or requesting their services? If they are able to offer basic (and free) service for all citizen this is a great achievement, for sure really helpful for them.
Unless we have all details it could be not really easy to understand if this is a new improvement or not. (of course... not your keys...)

Yeah, "not your crypto" I was expecting to see this 😁, what I am personally assuming is that the Bitcoin bank will work exactly like a bank, that is, they will work like fiat banks where people come in to deposit mone or withdraw money..

In this case, the citizens possibly no longer need a wallet except the banks mobile app which could serve as a wallet as well, citizens will go into the bank to deposit their bitcoin or withdraw it, the bank may offer other financial services like loaning away your bitcoin for some percentage of interest, that is, you could put your bitcoin on fixed deposit and you will be given some percentage of interest depending on how much bitcoin and the duration of its going to remain there as fixed deposit.

If you ask me, I would say that there are alot of financial services the bank can offer, but the absolute disadvantage is that it's all centralized.

[uchegod-21]

Hello bitocointalk 👋

I saw his on X (former twitter) and wants to share it here:

https://x.com/BitcoinNews21M/status/1971439588716707936?t=T70OTXeO8SommhpGWSfxrw&s=19

El Salvador is really doing great away from legal tender now a Bank! I give El Salvador their flowers !

Don't you see that they are dragging us back to what we are running away from? This is purely centralization, bitcoin is not designed to operate this way.

Once we allow the banking system to be normal with BTC, we will be giving room for some restrictions and third parties involvement in our financial life. Soon, they will request for KYC and seize our bitcoins if we can't provide the neccessary evidences.

El Salvador is gradually introducing the traditional banking system into bitcoin and it's not something to be excited about.

[tabas]

It makes sense for them to have that Bitcoin Bank if that really had been done. Because bitcoin as a legal tender there, has to have that some services offer for people but it's a different thing about depositing since we can basically hold our own bitcoins. It's best to know other source to learn more what are the services offered by that bitcoin bank. I see that everyone has a different point of view here. While we are happy to see banks adopting bitcoin but with this bitcoin bank, it seems that everyone isn't having a good thought about it, why's that?

[famososMuertos]

This story looks familiar. I might have come across it on X before now, so I want to believe that it is not new. I honestly think that the whole Idea is a shitty one. People just keep looking for ways to merge centralization with Bitcoin. What's the point of introducing another custodial service, calling it a bank, when Cex has proven to have it's own flaws over the years?. Can't believe we are seeing the complete opposite of what Bitcoin was never meant to be.

What are we going to see next?... Probably a Central Bitcoin Bank that governs all Bitcoin banks across the globe. How pathetic...

I wonder how narrow the scope of what this means can be. An infinitesimal portion of Bitcoin is concentrated in few hands, and they acquire it ceaselessly, pursuing only the benefit of their investors. No one has emerged to exploit its potential as a collective good.

Such concentration is the moral equivalent of someone who owns a transcendental work of art and reserves it for the exclusive enjoyment of its owner, when its natural destiny might be a museum... It is, in any case, a difficult and subtle moral complexity to apprehend.

Thus, the real absurdity doesn't lie in Bitcoin's essence, but in failing to grasp the true reach of a bureaucratic process that, while necessary, is in practice completely alien to its foundational ideas...

[Alex077]

Bitcoin don't need a physical location and I don't see any good reason for them to do this, but the government is very good at one thing though, that's taking advantage of the public's fund, if they are creating a Bitcoin bank then it is for no other reasons than what they have been doing before.
Who would dare use banks for Bitcoin reasons? Anyone here? Because it can never be me, a physical Bitcoin bank breaks all the reason why Bitcoin existed in the first place, peer to peer, decentralisation, etc. You must be dumb for such thing to confuse you enough and trust your Bitcoin with the banks.

emm yeah  a physical Bitcoin bank here might seem counterintuitive to Bitcoins decentralized nature. however that is not entirely true when you consider the case of El Salvador, mare. AFAIK the proposed Bitcoin bank in El Salvador is not about holding users private keys nor replacing personal wallet or regulate ordinary peopel. Rather the bank is specially designed for institutional investor, they offering services such as deposits, payments & lending denominated in Bitcoin. With a little knowledge, you will realize that the goal of this initiative is to attract only  foreign investment & establish El Salvador as a crypto hub, especially for high net worth individuals & institution, i dont see anything wrong with that.

[RealNoblee]

Hello bitocointalk 👋

I saw his on X (former twitter) and wants to share it here:

https://x.com/BitcoinNews21M/status/1971439588716707936?t=T70OTXeO8SommhpGWSfxrw&s=19

El Salvador is really doing great away from legal tender now a Bank! I give El Salvador their flowers !

Bitcoin do not need that middle man, But I think El Salvador is trying to leverage from the system already created by offering its own crypto services, such as selling of Bitcoin to people (exchange services) and or offering of crypto loans, but many will still fall for this by giving them their assets to manage, whereas Bitcoin has come to eliminate the middle, and you are now your own bank, but a lot of people seem stalked on the old tradional banking system.

The above may literally be the conception of many on El Salvador's move.
But El Salvador's move to allow investment banks to handle Bitcoin and digital assets aims to attract foreign investment, foster a new regulated banking category for crypto, and position the nation as a hub for blockchain innovation.

While initial aims included reducing remittance costs and increasing financial inclusion, recent developments focus on building a comprehensive crypto financial ecosystem and expanding the institutional architecture to support new financial products and services for renowned or expensive investors. 

[Lucius]

~snip~
El Salvador is gradually introducing the traditional banking system into bitcoin and it's not something to be excited about.

Anyone who knows who the people behind the ideas being implemented in that country are will not be surprised at all by any news coming out of that country. As far as I know, the idea of ​​the so-called Bitcoin Bank is being led by Max Keiser, who has a hand in most things, along with the Tether boys who are actually responsible for Bukele deciding on Bitcoin, even though he was in final negotiations with some other people who were proposing their altcoin.

I have already posted a link on the forum several times, but I am sure that there are many who would benefit from reading the information on it.

El Salvador Bitcoin: Tether buys itself a country; and why Chivo sucks

[Powerjumboo]

Hi mate, There is already a topic open on El Salvador where all the updated news on El Salvador is posted there. It is better not to open a new topic on El Salvador.

Re: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻  

By accessing this link, you can keep an eye here to see all the news about El Salvador and be the first to post all the news about the next El Salvador here.

Hello bitocointalk 👋

I saw his on X (former twitter) and wants to share it here:

https://x.com/BitcoinNews21M/status/1971439588716707936?t=T70OTXeO8SommhpGWSfxrw&s=19

El Salvador is really doing great away from legal tender now a Bank! I give El Salvador their flowers !

The government of El Salvador is taking steps for its country that no other government would ever dare to take. The government of El Salvador truly deserves the highest praise for such courage. El Salvador is full of tourist attractions and has taken such steps to provide maximum convenience to all tourists who want to travel to El Salvador and to provide maximum convenience, including Bitcoin transactions, that it is very important to open a bitcoin bank there.