2. I'd develop an online wallet service for my account holders. So say Joe Bloggs has a current account and savings account with me. I'd offer to allow him to set up an online cryptocurrency wallet with me as well, linked to his current account. I'd market this as a cryptocurrency savings account. If Joe Bloggs wanted to cash out some of his crypto savings, I'd allow him to sell at the click of a button, with the cash appearing in his current account to use.
I am not here to trust any third party to hold on to my coins,when i can store them securely and safely why would i trust a third party or a bank with my money,i really do not need any bank to hold to my coins since i can very well store my coins safely and even then if a hacker attains the private key ,then your money is lost,so you better be your own bank rather than trusting others.
This is true for the people who understand bitcoin and the technology behind. But for the average joes it's a totally new and unknown thing and it's not easy to get familiar with it in a short period of time. So there's a need from them to trust a 3rd party to help them to store their coins first, and if they want, they can educate themselves to set up their own safe storage for their coins. If they don't want to educate themselves, because they don't have time, or they are just lazy to trust the 3rd party, they will choose someone who they trust already, and banks are nowdays have the trust of the people (more or less) but they have the trust of the average people for sure.
So if someone is interested in the technology, then there's no need for the bank, but for the others there is a need for something to belive in...