This is very good news for the crypto market
No, it's not. It's
irrelevant what bankers think about Bitcoin. Bitcoin is designed to be free from them!
Unfortunately, many crypto-users don't realize this, and that makes it relevant again what a (rich) banker has to say about crypto. Usually it's FUD, now it's a bit more positive news, but I can't wait for the day nobody cares about whatever bankers say about crypto anymore.
Now imagine a bank starts using Bitcoin... It will do the same fractional banking as they do with money issued by governments: for every dollar they have, they can lend out 10 times more (or much more, depending on regulations). As long as most people don't try to withdraw their funds, nobody really notices.
But the moment a fraction of the people want their money back, it's called a bank run and the bank collapses!
If a bank owns 10000 Bitcoins, nothing stops them from giving out 1000 loans of 100 Bitcoin each! And boom, 90000 Bitcoins created out of thin air.
Mt.Gox had much more balance on user accounts than they had in their wallets, you could say Mt.Gox was the first fractional Bitcoin bank. We all know how that ended.
Bankers, do whatever you want, I don't care