You Can Now Keep Your Bitcoins In A Bank

[ThankThake]

Crypto receipts!

This is the most perfect thing I have ever read about the blockchain:

Citi has developed an instrument it is calling a digital asset receipt. It works much like an American depositary receipt, which have been around for decades to give US investors a way to own foreign stocks that don’t otherwise trade on US exchanges. The foreign stock is held by a bank, which then issues the depositary receipt.

In this case, the cryptocurrency would be held by a custodian, with the so-called DAR issued by Citigroup, the people said. The bank would alert the Depository Trust & Clearing Corp., a Wall Street middleman that provides clearing and settlement services, that it issued a receipt, one of the people said. That lends an important layer of legitimacy and gives investors a way to track the investment within a system that they’re already familiar with, the person added.

I want to cry. I want to give those paragraphs a hug. I have written, more than once, about the complexities and inefficiencies of having pretty much all U.S. stocks held by DTCC. “It’s enough to make you wish for a blockchain,” I once wrote. A secure, open, permissionless, immutable record of who owns what, one that doesn’t require investors to trust either a bank or a central Wall Street intermediary or to rely on those intermediaries’ old-fashioned systems: That is a core dream of the blockchain, a central appeal of cryptocurrencies.

And then here is Citigroup Inc. looking at investor demand and concluding: Yes, sure, Bitcoin is great, but what Bitcoin investors really want is to hold Bitcoins in the form of receipts issued by a giant bank and registered at DTCC. That’s where the real innovation is! That’s what the people want! “Take this blockchain away from me,” they cry, “and give me the old system that I know!”

A claim that you sometimes hear is that the blockchain will revolutionize back-office processes — settlement, custody, etc. — in the financial system. But look at the actual experience of cryptocurrency custody. The main story of institutional investment in cryptocurrency these days is a story of custody, broadly speaking: Large institutional investors want to get access to Bitcoin, but they do not want to own actual Bitcoins, themselves, on the actual Bitcoin blockchain. They want Bitcoin exchange-traded funds, or Bitcoin futures, or Bitcoins held in custody by regulated crypto exchanges or traditional big banks, or, sure, crypto depository receipts, why not. Everywhere there is a blockchain, a trusted central intermediary — often a bank or other old-school Wall Street middleman! — springs up to make it useful. Does that tell you anything about the prospects for blockchains to replace central intermediaries?

I confess, though, that it goes the other way too: “Two financial technology companies won New York state approval to issue cryptocurrencies pegged to the U.S. dollar,” the Gemini dollar and the Paxos Standard, “creating more regulated and transparent competitors to Tether and other so-called stable coins,” which are in turn competitors to … the dollar. If you want to hold your Bitcoins through a bank, you can, but on the other hand if you want to hold your dollars through a blockchain, you can do that too.

https://www.bloomberg.com/view/articles/2018-09-10/keep-your-bitcoins-in-the-bank

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Summary: Citibank has created something they call a "digital asset receipt(DAR)" which could allow purchasers of bitcoin to have banks hold their coins. The details aren't clear. There isn't much information posted here about minimum purchasing amounts or who digital asset receipts will be marketed to. Its nice to see innovation and new offerings for crypto enthusiasts. Although I have a feeling these digital asset receipts might come bundled with $100,000 dollar minimum investments and cater only to high(er) end demographics.

I would guess some would opt for DAR's if they could provide insurance on bitcoins and crypto up to limited amounts.

It’s good to see innovations like this, but they don’t really matter to me. I have seen a lot of news about Bitcoin banks and the next day you won’t hear of them again, don’t know if they are scam or what. And I don’t think need anything like or DAR (as you said) for storing my cryptocurrencies, not when there are cold storage that is more safe than all that. But let’s what this offers, if it turns out good there will be no doubt a lot of people will go for it.

[Hemady17]

Well, it may happen at other country but in my country, we cannot keep bitcoin in banks. In fact, what is the essence of our digital wallet if in the end we will send it to the banks? Maybe, I will save my savings on bank but not my bitcoin. I like my bitcoins stay at my wallet because there is assurance that I will get it when I want to have money.

[KesoNie]

Well, it may happen at other country but in my country, we cannot keep bitcoin in banks. In fact, what is the essence of our digital wallet if in the end we will send it to the banks? Maybe, I will save my savings on bank but not my bitcoin. I like my bitcoins stay at my wallet because there is assurance that I will get it when I want to have money.

I think some country are now accept Bitcoin to put in the bank and I think they were lucky because they cannot lose it and their Bitcoin surely is in the safe place. But I think if tthey put their money in the bank then surely they will pay a tax because bank is property of government, and once you have a lot Bitcoin then your paying tax will be higher. Since

[arikassuja]

I think that is very unnecessary, and when you save in the bank, the bank and the government will know all the assets you have, so you should be able to save your bitcoin in the blockchain wallet directly, which provides a place to store your bitcoin.

[sinkfish]

why should we put our crypto in bank? so that bank can issue IOU and inflate the market again with bitcoin? what bank going to do if the market hitting bubble? Plus, putting it in bank defeat the very purpose of bitcoin creation.

[Vaculin]

why should we put our crypto in bank? so that bank can issue IOU and inflate the market again with bitcoin? what bank going to do if the market hitting bubble? Plus, putting it in bank defeat the very purpose of bitcoin creation.

Yes.Bitcoin has a decentralized nature so if one must put his crypto savings in a bank,it is no longer decentralized but a centralized one.Banks are here to make full control of our savings and us the owners will have less control over it.Basically it's still more secured having our own bank our wallets than trusting any other bank which is only full of security measures but not totally secured.

[Dodoymabs]

I think that is very unnecessary, and when you save in the bank, the bank and the government will know all the assets you have, so you should be able to save your bitcoin in the blockchain wallet directly, which provides a place to store your bitcoin.

There is always a reason for everything and we know that some of us wanted to avoid volatility especially if they invest BTC at previous year. This is at least we have so many options to take and I think bank will not do some shit about our crypto assets.

[Finestream]

I think that is very unnecessary, and when you save in the bank, the bank and the government will know all the assets you have, so you should be able to save your bitcoin in the blockchain wallet directly, which provides a place to store your bitcoin.

There is always a reason for everything and we know that some of us wanted to avoid volatility especially if they invest BTC at previous year. This is at least we have so many options to take and I think bank will not do some shit about our crypto assets.

I have already some friends of mine who have lost some of their savings in certain bank and when they try to confront the manager,they only end up being frustrated.So i would not risk my crypto savings especially that is more expensive compared to fiat currencies.

[kuto]

I think that is very unnecessary, and when you save in the bank, the bank and the government will know all the assets you have, so you should be able to save your bitcoin in the blockchain wallet directly, which provides a place to store your bitcoin.

You have a point buddy, that's  also my opinion I rather keep my coins in my wallets, I will just get if ever I need something but not into the bank. Will its also safe in the bank but i just think the wallet is more accessible than in bank. In other hand I found saving money in bank js quite a good thing also.

[jhonjhon]

What gonna happens to our Bitcoins stored in the bank? Does it have a certain percentage to increase our asset of staying it on the banks same thing happen to our fiat money? If there is, then it might be a good and important event happen to us. Maybe we took advantage about these and it also a safe place for our bitcoin rather than of staying it in our wallets.

[maemunah]

What gonna happens to our Bitcoins stored in the bank? Does it have a certain percentage to increase our asset of staying it on the banks same thing happen to our fiat money? If there is, then it might be a good and important event happen to us. Maybe we took advantage about these and it also a safe place for our bitcoin rather than of staying it in our wallets.

absolutely right and if it will happen it is the number one safest place if in my opinion to save our bitcoin, because it will be very difficult for hackers to steal our assets and bank security, of course it is certainly no longer worrying

[UNOE]

What gonna happens to our Bitcoins stored in the bank? Does it have a certain percentage to increase our asset of staying it on the banks same thing happen to our fiat money? If there is, then it might be a good and important event happen to us. Maybe we took advantage about these and it also a safe place for our bitcoin rather than of staying it in our wallets.

absolutely right and if it will happen it is the number one safest place if in my opinion to save our bitcoin, because it will be very difficult for hackers to steal our assets and bank security, of course it is certainly no longer worrying

There are good and safe cold stores for Bitcoin which you can handle and have at your own. Banks are more vulnerable to hackers because they have better reward for potential hacker.
I do not see point for holding Bitcoin inside banks.

[akram143]

What gonna happens to our Bitcoins stored in the bank? Does it have a certain percentage to increase our asset of staying it on the banks same thing happen to our fiat money? If there is, then it might be a good and important event happen to us. Maybe we took advantage about these and it also a safe place for our bitcoin rather than of staying it in our wallets.

absolutely right and if it will happen it is the number one safest place if in my opinion to save our bitcoin, because it will be very difficult for hackers to steal our assets and bank security, of course it is certainly no longer worrying

There are good and safe cold stores for Bitcoin which you can handle and have at your own. Banks are more vulnerable to hackers because they have better reward for potential hacker.
I do not see point for holding Bitcoin inside banks.

The idea was good but it take sometimes to develop in all over the world but it cannot be able to understand by many people till now this is why the reason that they don't accept that they don't like cryptocurrency to enter into their country by the government that's why I am saying this otherwise it has a huge future soon.

[Xardasim]

What gonna happens to our Bitcoins stored in the bank? Does it have a certain percentage to increase our asset of staying it on the banks same thing happen to our fiat money? If there is, then it might be a good and important event happen to us. Maybe we took advantage about these and it also a safe place for our bitcoin rather than of staying it in our wallets.

absolutely right and if it will happen it is the number one safest place if in my opinion to save our bitcoin, because it will be very difficult for hackers to steal our assets and bank security, of course it is certainly no longer worrying

If the banks have insurance, we can keep Bitcoin there. Otherwise, if there is a chance that the money could be hacked, it would be more attractive for me to keep it on my hardware wallet. Because it may be a problem to keep a decentralized currency in a central system.

[mornabo]

Well, it may happen at other country but in my country, we cannot keep bitcoin in banks. In fact, what is the essence of our digital wallet if in the end we will send it to the banks? Maybe, I will save my savings on bank but not my bitcoin. I like my bitcoins stay at my wallet because there is assurance that I will get it when I want to have money.

I think some country are now accept Bitcoin to put in the bank and I think they were lucky because they cannot lose it and their Bitcoin surely is in the safe place. But I think if tthey put their money in the bank then surely they will pay a tax because bank is property of government, and once you have a lot Bitcoin then your paying tax will be higher. Since

we don't know the system yet if we haven't tried it, is it taxed for transactions and storing bitcoin in the bank or not, is it safe or not, we can't give that feedback, because we haven't tried it yet, because around us there is no one like this, if this is true there, hope that many countries and banks will follow it

[blackhawkeye1912]

I this cryptocurrency banking is somehow good with huge amount of cryptocurrency. The bank is giving options for big depositors to have an alternative, safer, and insured storage. However, just like what many said here, cold storage is the best alternative to this crytpocurrency bank. The only difference I see is the insurance aspect. Other than that, they are literally the same.

[DavidNiva]

bitcoin is always developing to increase their value. I think the bitcoin ETF effort is the same, which is to attract the public to invest in bitcoin.

maybe not the main goal of bitcoin to increase its value, but the biggest possibility for socialization and to market bitcoin so that it can be used in all world societies. if to increase value, it might be more suitable in the world of treding and maybe also in buying and selling online, but for deposits in banks it tends to be more public recognition.

[alonelyorange]

I am glad with bank accepted saving and hold money by using bitcoin or altcoin, but for my country bitcoin still not available for transaction only allowing for using as investment or trade, one day maybe I have around to country have allowed bitcoin as transaction.

[eekkaa]

I do not believe in the bank and when I store at the bank the bitcoin assets that I have will be known by the bank and it is very terrible and when you save in the bank then you cannot grow the bitcoin that you have, I better use it for trading not just keep quiet .

[Aldrinx00]

It's good to know that this bank accept to store bitcoin but for me i will never store my bitcoin on banks, simply because i don't trust it what if my bitcoin is gone i don't think they will pay it back even with fiat currency. It's better to use a hardware wallet for me it is more secured.