Will banks ever offer bitcoin deposits?

[kendra1107]

We all know how risky bitcoin is. Let's imagine the most riskiest money deposit situation.
What do you think guys, will this moment ever come and banks decide to offer us Bitcoin deposits (e.g. fixed profit on 1 year deposit and etc).
This can be very, very profitable for banks if they make correct decisions.
P.S I don't mean freebitco.in's offer of holds on their wallet. I mean if official banks ever offer us this service.

This is quite possible really. Not far fetched if you'll think about it. Some big names in the banking industry (though even more are still skeptical) have actually looked into this idea. And if I'm not mistaken, a handful of them have already started incorporating Bitcoin into their system. I believe that the realization of the cryptocurrency market and Bitcoin in particular as being profitable and beneficial on their cause have already crossed their minds. I wouldn't be surprised that one of these days the idea of Bitcoin deposits in these banks would actually materialize.  

[Rozita]

First, it's quite the opposite of decentralization. If you store your coins in an bank's wallet, then the government will be able to block your account. Also the privacy won't be protected.

And how much profit do you advise? 1% 2% 10% ?
Given the bitcoin price volatility these profits can be earned in only one week or even one day.

[ohkkstaaahp]

I do not think so. BTC price fluctuations too high. No one can accept holding them. High risk of holding BTC, if the bankruptcy may bankruptcy.

[Dmitry.Vastov]

We all know how risky bitcoin is. Let's imagine the most riskiest money deposit situation.
What do you think guys, will this moment ever come and banks decide to offer us Bitcoin deposits (e.g. fixed profit on 1 year deposit and etc).
This can be very, very profitable for banks if they make correct decisions.
P.S I don't mean freebitco.in's offer of holds on their wallet. I mean if official banks ever offer us this service.

I am damm sure that in the future banks will surely offers the bitcoin deposits. In present time the government and banks are hesitating in involving into bitcoin because they do no find it trust worthy and believes that introducing bitcoin in nation can put national security in danger because of increasing illegal use of bitcoin but in the future when bitcoin will be centralised, there will be authorised regulating body over bitcoin then banks will also allow to offer the bitcoin deposits and I think this is beneficial too because I think banks are the safest place to store your bitcoins.

[dominional]

Will banks ever offer bitcoin deposits? Decentralization will be number on problem because most of government banks will not allow it because it will affect them drastically

[Rooster101]

Some bank officials in my country have already express support on the use of cryptocurrencies but there is still no plans to open a deposit for a cryptocurrency. A law might still be needed to enact first before government gives approval to any bank that wanted to allow a bitcoin deposit.

[avia]

i think everything that deals with money and profit and investment requires risk. the world is changing and its moving towards a digital world. banks have been around for centuries but they survived because they adapt to changes. i guess banks will eventually come to a point wherein they will accept bitcoins as deposit no matter the risk. however, for this tobecome a reality will take a while.

[Nylelyn]

If this scenario will happen, it is complete contradiction of of their individual business statement. But I believe that Banks at this time are deliberating the best possible options to integrate bitcoin in their operation and services at their benefit. However, Banks will have to pursue this because they see the reality that we are now in the pre-digital era and time will come that digital money will dominate.

[Bakulman]

Yes i think they will, because they can  gain a lots of profit in opening accounts for bitcoin deposits.but the question is will the bitcoin holders agree to the terms and conditions that the bank will offer.If i am a bitcoin holder why should i deposit my bitcoins through banks when i know the assurances of earnings through an investment capital of my own and knowing it is also very safe stored in my wallet.But if the banks can make a real deal agreement in terms of bitcoin that would be great.maybe they can make a bitcoin card debits that is automatically acceptable in ATM machines and converts it with what kind of currency we will withdraw anywhere in the world.I love to hear the opinion from the banks,what do you think ?

[callmeback]

In the near future we expect a lot from bitcoin and i hope that bitcoin will be like our real money to used it like our real money. But if the banks can make a real deal agreement in terms of bitcoin that would be great. A law might still be needed to enact first before government gives approval to any bank that wanted to allow a bitcoin deposit. Once you put your bitcoins on bank, it no longer possess the decentralized characteristics. It becomes more like a centralized currency where you will lose full control of your coins. If you want to get fixed amount of profit per year from bank just stick with traditional currencies.

[ridwan99]

I love depositing my fiat to the banks and they are making money with it but  its bitcoin.If we speaking kinda teoritally.. well, I guess it is possible sometimes.. maybe after all bitcoins would be mined.. and price could be more predictable.. but I'm sure banks will not offer for you very good conditions...
They will earn money for themselves first of all.

[Findingnemo]

Will banks ever offer bitcoin deposits? Decentralization will be number on problem because most of government banks will not allow it because it will affect them drastically

Banks will not support crypto currency at all but it need to change soon if it happens it is very helpful for the development of the crypto currency and also the value of the bitcoin development.

[Yarsk]

Due to the volatile nature of bitcoin it will be very hard for banks to come to terms with that because banks are always after their own profits and as such will never go into any service that is as risky as offering bitcoin banking. Bitcoin is hard to predict in terms of future price so at that the bank is almost blind and out of control.

[whaawh]

Due to the volatile nature of bitcoin it will be very hard for banks to come to terms with that because banks are always after their own profits and as such will never go into any service that is as risky as offering bitcoin banking. Bitcoin is hard to predict in terms of future price so at that the bank is almost blind and out of control.

That's why I would consider Bitcoin as an investment or so a bond, but in no way Bitcoin will be able to be a means of payment in the future. Perhaps because of this, many states do not dare to legalize this coin.

[HabBear]

We all know how risky bitcoin is. Let's imagine the most riskiest money deposit situation.
What do you think guys, will this moment ever come and banks decide to offer us Bitcoin deposits (e.g. fixed profit on 1 year deposit and etc).

Are you talking about fiat based banks getting into Bitcoin? I.e., HSBC starting to accept bitcoin deposits?

Because there are already loads of bitcoin banks...every bitcoin exchange is a bank, accepting holdings, etc.

This can be very, very profitable for banks if they make correct decisions.

It's hard for bitcoin banking to be profitable in the same way that fiat banking is profitable...that's part of the reason why bitcoin was created, to move away from the traditional fiat banking system and their fractional lending process that is so profitable for them and so costly for us.

Banks earn money by lending out the deposits they have on hold from their customers. They charge interest on the loans that exceeds the interest they pay on the savings deposits. And lately banks have decided not to pay anything (i mean almost zero interest) on savings, yet they charge as much as they possibly can on lending. This is predatory.

It's hard for the same to be done with Bitcoin because transactions are final and there is little to no recourse if your bitcoin is stolen.

There are a few bitcoin exchanges that are paying interest on the deposits of their customers, which is appropriate to account for the risk the customers are accepting to leave their bitcoin with those exchanges. These exchanges make their money in another way, in some cases they are using a portion of the deposits to fund mining operations.

P.S I don't mean freebitco.in's offer of holds on their wallet. I mean if official banks ever offer us this service.

P.S. Freebitco.in is one of the BEST examples of how a bitcoin bank should be operated. Holding deposits and paying interest to depositors. They're better than Coinbase and every other Bitcoin exchange wallet company. They've been paying interest on deposits for over a year now, reliably, every single day...without fail.

[darksquall22]

I think banks will eventually adopt it but its probably a ways off. In the mean time they will mostly be distrustful of crypto currency.

[Toon93]

Might have already been said, but the Rabobank (Netherlands) has recently announced that they will be offering their own cryptowallet. It still in the preliminary steps (internal beta, to be precise) but it's definitely getting some traction. If you want more information you can read more about it over here:

https://www.cryptocoinsnieuws.nl/achtergrond/rabobank-komt-met-rabobit-een-cryptowallet-whut/
(It's in Dutch though, but I'm sure Google Translate will give you the general idea)

[Lyne01]

We all know how risky bitcoin is. Let's imagine the most riskiest money deposit situation.
What do you think guys, will this moment ever come and banks decide to offer us Bitcoin deposits (e.g. fixed profit on 1 year deposit and etc).
This can be very, very profitable for banks if they make correct decisions.
P.S I don't mean freebitco.in's offer of holds on their wallet. I mean if official banks ever offer us this service.

That is very much possible in the future. However, banks have a full regulation in putting tax into deposits, then why would you still put your money in banks. Better hold your bitcoin and make it grow by yourself.

[Doge dealer]

this will only be possible if we restructure the banking system or the bitcoins infrastructure. bitcoins is supposed to be anonymous and this will be a huge challenge for any bank because by the nature of their setup banks will need to know who is transferring or doing a particular transaction and what we refer to as KYC (know your customer) information. The privacy is what attracts a number of individuals who need this anonymous status and so even if banks were to eventually offer deposits we would need to furnish them with information thereby destroying the bitcoin one address to another without having to endure any question and answer session, so if this were to become possible then eighter side would have to make drastic changes which would remake/change the face of their institution.

[Jonsnowstark]

Yeah i think this will come. It might not come now, but in the future it will. Bitcoin has a part of the lives of many people. Seeing the demand for bitcoin increases rapidly, as a business institution, banks will fill that need and see that it is better to adopt it rather than go against it. Anyway, the technology of bitcoin is far beyond what banks can offer. So i think they'll probably fall into their own trap.