Can We Expect A Legally Compliant Bitcoin Bank Soon?

[CryptoBry]

I am wondering if it is possible that there would be a physical bank operating somewhere that is fully compliant with the banking laws but focusing on cryptocurrency business? I mean a bank that can be providing the usual banking services but all things are tied to bitcoin or cryptocurrency.

The bank should offer bitcoin debit and credit cards and of course will operate bitcoin ATM machines. In the bank you can file a loan with your bitcoin or crypto as the collateral. Maybe even have the facility where you can deposit your bitcoin under the bank's safety platform.

Is this just a dream or is there a possibility that this can happen eventually maybe 10 or 20 years from now? Or maybe in the first place there is no need nor demand for this?

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[NeuroticFish]

I think that the "bitcoin bank" name is misleading. In my head (and others' too) Bitcoin bank would be a "bank" where you "deposit" Bitcoin and get interest. Of course, such thing could not be great and it's not what you ask for.

So a better name could be "Bitcoin friendly bank" although there are already a couple of banks or banking services that are not that "cold" towards Bitcoin, allowing withdraw from exchanges and also offering services to buy Bitcoin for you.

I guess that you know all this. What I want to say is that we already have a few "friends" and the banks overall seem to get more friendly towards Bitcoin with every new day passing. So a bank offering full services, from exchange (or work with an exchange) to cards and such is just a not-so-far step. Incorporating Bitcoin capabilities into their ATMs is also a not so difficult next step. We are close to that, your 10 years number may be already big.

The question about the demand is, however, a very good one. Banks usually operate with high fees. So although more convenient, buying/selling Bitcoin though a bank will be more expensive (in the same way converting EUR/USD/local currency is much cheaper at an exchange office than at the bank). There will be demand for it, but I don't think it will be that big. Of course, it will add legitimacy, which will translate into increasing demand.

[dothebeats]

A dream, and a distant one at that. Fiat banks are already fully-operational, and can pretty much integrate the things you mentioned into their platform. Crypto-only banks would struggle to make its footing in the financial world and would be having a hard time to get some operational profit, knowing how limited their scope is and how little their target market is compared to commercial banks.

Also, bitcoins and crypto are aimed to make people their own banks without relying to third-party services, so..

[hugeblack]

I do not think what you say is true. Bitcoin is an independent currency from banks. You do not need to create a bank account to use it. If this happens, you weaken this technology. It's like downloading the latest Android system on an old cell phone.
The technology based on Blockchain and directed to bank system is XRP.

[Virtual miner]

I think that the "bitcoin bank" name is misleading. In my head (and others' too) Bitcoin bank would be a "bank" where you "deposit" Bitcoin and get interest. Of course, such thing could not be great and it's not what you ask for.

So a better name could be "Bitcoin friendly bank" although there are already a couple of banks or banking services that are not that "cold" towards Bitcoin, allowing withdraw from exchanges and also offering services to buy Bitcoin for you.

I guess that you know all this. What I want to say is that we already have a few "friends" and the banks overall seem to get more friendly towards Bitcoin with every new day passing. So a bank offering full services, from exchange (or work with an exchange) to cards and such is just a not-so-far step. Incorporating Bitcoin capabilities into their ATMs is also a not so difficult next step. We are close to that, your 10 years number may be already big.

The question about the demand is, however, a very good one. Banks usually operate with high fees. So although more convenient, buying/selling Bitcoin though a bank will be more expensive (in the same way converting EUR/USD/local currency is much cheaper at an exchange office than at the bank). There will be demand for it, but I don't think it will be that big. Of course, it will add legitimacy, which will translate into increasing demand.

Yes you are right! How people dream about bitcoin bank is altogether fake. It's very much against the basic principles of BTC as how would banks give an interest on BTC which is a deflationary currency and cannot be further used to make profits. Moreover, providing loans in form of BTC to an address where borrower holds the private key is also very risky as he at his own option can do anything with the funds and opt not to return. Without any legal remedies available recovering the debt would be pretty hard. So even if we want BTC to operate as a secondary currency we can think of Banks legitimately allowing crypto withdrawals and selling directly through ATM. This can be possible through direct tie-ups with exchanges As banks can assist them in the process of selling cryptocurrencies and making people available cash at counter.

Having said all this. Without governments agreeing to bring Cryptos in central system It is basically nothing but a dream as no Bank would be happily involved in it because almost every institution in every country has to register itself under some central authority to call itself a Bank and these authorities put constraints on banks to control the flow of money & hold some typical type of assets. When more and more people will ask for crypto withdrawals Bank has to render them withdrawals and getting cryptocurrencies in return. Even if think that depository services are also open still it will be too difficult to create an equilibrium so that deposits are roughly around withdrawals so banks don't have to hold a lot of cryptocurrencies. So without governments support Things will be too complicated to even dream for.

[Ailmand]

I know banks in our country entertaining cryptocurrency transactions, however, banks that focuses on crypto business may happen way too far in the future. We are all aware that the government may accept crypto adaptation, yet they are skeptical supporting it to the full extent.

[avikz]

I am wondering if it is possible that there would be a physical bank operating somewhere that is fully compliant with the banking laws but focusing on cryptocurrency business? I mean a bank that can be providing the usual banking services but all things are tied to bitcoin or cryptocurrency.

The bank should offer bitcoin debit and credit cards and of course will operate bitcoin ATM machines. In the bank you can file a loan with your bitcoin or crypto as the collateral. Maybe even have the facility where you can deposit your bitcoin under the bank's safety platform.

Is this just a dream or is there a possibility that this can happen eventually maybe 10 or 20 years from now? Or maybe in the first place there is no need nor demand for this?

While the community wants to move away from centralized cartels, you are just trying to put the balls in one basket! Why do we need banks for cryptocurrencies while we can have access to our funds all the time? Are you looking for banks to provide custodian services to your bitcoins?? Or give you a mare interest on your holding??

We will certainly see fully digital banks in future which will solely operate in virtual currencies issued by central banks but it is better if we don't see bitcoin banks becoming a reality!!

[Theb]

I have mentioned this bank/website before called Bitbond and in my opinion this is the closest business which future crypto banks will look like. Bitbond became popular ever since Reuters made an article about their loaning business that allow them to have international clients who can have the money in seconds with the use of cryptocurrencies.

But to answer your question will there ever be a crypto bank acting like a regular bank in the future? I guess the answer is a big no as there are other purposes of banks which we don't usually see. Aside from the regular loans and savings accounts we see often, banks are also in charge of underwriting of shares, mergers and acquisitions, as well as stock brokerage services and many others which I don't think a crypto specialize bank can handle when both of their experience and capital is lacking. The crypto industry doesn't need its own bank to be successful it only needs us to keep it alive.

[stomachgrowls]

Is this just a dream or is there a possibility that this can happen eventually maybe 10 or 20 years from now? Or maybe in the first place there is no need nor demand for this?

It would be just a DREAM!

We know on whats the true purpose on why Bitcoin is created on the first place.Right? which is without going through any financial institution and with
this alone we would know that this so-called bitcoin bank wont be possible even it would exist i doubt that no one would use it up.
Collaborating Bank and Bitcoin?its hard to believe on.

[gentlemand]

In the bank you can file a loan with your bitcoin or crypto as the collateral.

All it would take is a few violent moves and the bank is totally screwed. There's no way loans and crypto will ever work smoothly together.

What most people will want is a bank that seamlessly interacts with fiat and crypto. Since such a bank would be a little fish in a big pond it would be bullied out of business.

[dark1234]

Is this just a dream or is there a possibility that this can happen eventually maybe 10 or 20 years from now? Or maybe in the first place there is no need nor demand for this?

It would be just a DREAM!

We know on whats the true purpose on why Bitcoin is created on the first place.Right? which is without going through any financial institution and with
this alone we would know that this so-called bitcoin bank wont be possible even it would exist i doubt that no one would use it up.
Collaborating Bank and Bitcoin?its hard to believe on.

right ... son ...
banks for bitcoin are not possible because it is not possible to apply banking rules as a whole in a bitcoin order because bitcoin is different. you will not get interest by saving bitcoin because you can get interest with promising rewards in market exchange

[Jan_Vl]

I think there's a chance to make it real but not in the near future. Many people don't trust crypto, or have never even heard of it

[orions.belt19]

I am wondering if it is possible that there would be a physical bank operating somewhere that is fully compliant with the banking laws but focusing on cryptocurrency business? I mean a bank that can be providing the usual banking services but all things are tied to bitcoin or cryptocurrency.

The bank should offer bitcoin debit and credit cards and of course will operate bitcoin ATM machines. In the bank you can file a loan with your bitcoin or crypto as the collateral. Maybe even have the facility where you can deposit your bitcoin under the bank's safety platform.

Is this just a dream or is there a possibility that this can happen eventually maybe 10 or 20 years from now? Or maybe in the first place there is no need nor demand for this?

While the community wants to move away from centralized cartels, you are just trying to put the balls in one basket! Why do we need banks for cryptocurrencies while we can have access to our funds all the time? Are you looking for banks to provide custodian services to your bitcoins?? Or give you a mare interest on your holding??

We will certainly see fully digital banks in future which will solely operate in virtual currencies issued by central banks but it is better if we don't see bitcoin banks becoming a reality!!

Many still prefer the "comfort" of banks, that's why they continue to want to integrate it with crypto. Unless there come's a day wherein a special bank is formed, one that would offer different services and cater to the needs of crypto users. However, I don't see much need for it. It would provide "security" for those who are doubtful of the use of bitcoin, but then its decentralization would just be then useless unless there's a way for it to be a third party bank. Anyway, there are already many better ways for us to store crypto, plus keeping it for interest seems pointless. There are many bitcoin debit cards and ATM machines already appearing from third party providers so I think that those would suffice already.

[gentlemand]

I think there's a chance to make it real but not in the near future. Many people don't trust crypto, or have never even heard of it

More importantly, would you trust the bank touting it?

There've been plenty of attempts making big claims. They were all nobodies and all amounted to nothing, or actively set everyone's money on fire a la Neo & Bee.

The only way it would get anywhere is if an existing bank did it. Otherwise it's probably going to be yet another scam.

[Argoo]

I think there's a chance to make it real but not in the near future. Many people don't trust crypto, or have never even heard of it

I think that cryptocurrency banks will arise and exist in the near future. I already read that, in my opinion, a cryptocurrency bank is already operating in Sweden. In addition, in this forum I have already seen two ICO campaigns, the purpose of which was to create a cryptocurrency bank.
However, ultimately, whether they will develop or not will depend on whether there will be a demand for their services. They have the right to exist, and time will tell how much they will be in demand.

[magneto]

I am wondering if it is possible that there would be a physical bank operating somewhere that is fully compliant with the banking laws but focusing on cryptocurrency business? I mean a bank that can be providing the usual banking services but all things are tied to bitcoin or cryptocurrency.

The bank should offer bitcoin debit and credit cards and of course will operate bitcoin ATM machines. In the bank you can file a loan with your bitcoin or crypto as the collateral. Maybe even have the facility where you can deposit your bitcoin under the bank's safety platform.

Is this just a dream or is there a possibility that this can happen eventually maybe 10 or 20 years from now? Or maybe in the first place there is no need nor demand for this?

I think that it's not something that is necessarily required in order for the bitcoin ecosystem to thrive. Especially when you consider the fact that non-physical versions of the same thing is already about, and they haven't really gained much traction at all. BTC users are always skeptical when they're dealing with a third party that holds their funds.

But I think it's a matter of time before the type of institution that you describe pops up. The question is really in which jurisdiction/country. It's most likely going to be in a country with positive regulation, that is willing to promote crypto businesses, which isn't really a lot right now.

It all comes down to what the regulatory bodies think, though. The concept is doable, and is not new.

[phamminhtan]

I find it difficult, because the bitcoin market is very volatile and the scope of use is very limited, and more legal frameworks for bitcoin are needed.

[OmegaStarScream]

Whether you're referring to a crypto friendly bank or an actual bank for crypto, I honestly don't see the use of it. Bitcoin is everything that banks are against, I don't see them going together, to be honest, but that doesn't mean that we won't see services trying to do so, I can actually see BitPay or Coinbase doing this because, for me, they both look like they are trying to centralize crypto or at least, change it to something that is not. And trust me, it's not gonna take that many years, it's probably just around the corner.

[Falgorn]

I am wondering if it is possible that there would be a physical bank operating somewhere that is fully compliant with the banking laws but focusing on cryptocurrency business? I mean a bank that can be providing the usual banking services but all things are tied to bitcoin or cryptocurrency.

The bank should offer bitcoin debit and credit cards and of course will operate bitcoin ATM machines. In the bank you can file a loan with your bitcoin or crypto as the collateral. Maybe even have the facility where you can deposit your bitcoin under the bank's safety platform.

Is this just a dream or is there a possibility that this can happen eventually maybe 10 or 20 years from now? Or maybe in the first place there is no need nor demand for this?

In the future, banks will necessarily provide various services in cryptocurrency. At a minimum, this will be a cryptocurrency exchange for a common currency. The provision of other services, including lending in cryptocurrency, opening and servicing of cryptocurrency accounts, will primarily depend on the degree of legalization of cryptocurrency by states and the creation by the government of necessary by-laws for the practical implementation of cryptocurrency, in particular, the forms and methods of banks with cryptocurrency. Only when there are specific instructions, banks will be able to work with cryptocurrency. It is still difficult to predict what will come of this, given the high price volatility of cryptocurrency.

[boyptc]

That kind of feature will be against to what bitcoin is, a decentralized currency.