Bank of Crypto?

[Abiky]

Some exchanges are already offering lock in period with a fixed return which is like time deposit in banks. Is Binance the only exchange that offers fund security to its clients? Although we don't know how deep is there security funds currently but sure it cannot cover all the amount yet. But a good start by Binance. Blockfi also offers crypto time deposits and loans with collateral. These are just few of the companies that are starting to venture like what banks do.

I think the hardest for a crypto bank is how to get an insurance from companies. Maybe this is doable but expensive and with low maximum. In the future this may become easy to achieve as we are turning to become more dependent on internet.

That's certainly true, mate. But even if some exchanges are offering crypto financial services, they're not considered as "Banks" by governments worldwide. I believe that these exchanges would need to face certain regulatory hurdles in order to be classified as "Banks" in the future. The trend of DeFi (decentralized finance) is rising like never before, giving people the opportunity for them to be their own bank. If successful, then there would be no need for a "Bank of Crypto". Well-known centralized banks of today, are much more comfortable handling Fiat currency than anything else. They'll be quite skeptic about crypto, since it's still largely unregulated. Not to mention, crypto prices are extremely volatile while Fiat is relatively stable.

But who knows? Maybe someday we'll see "National Banks" accepting crypto for deposits and withdrawals, increasing its adoption within the mainstream world like never before. These banks could serve as custodians of an individual's crypto funds, taking care of security and other responsibilities. This would be very convenient for newcomers into crypto with no experience or knowledge in the field. But for crypto enthusiasts, being their own bank it's the way to go. Just my opinion

[ableh]

Considering that most people nowadays often find it hard to store and protect their cryptocurrencies, it's best to delegate the responsibility to a middleman. A bank of crypto would fit the bill nicely, as people would be able to secure their cryptocurrencies without ever having to follow the necessary precautions to prevent hacks or theft. As long as the bank of crypto is highly regulated by the government, then it'll be here to stay for a long time. Still though, not everyone will agree to this as it greatly defeats the whole purpose of crypto and Blockchain technology. The idea of a bank providing crypto services would only prove to be viable for newcomers into cryptocurrency. People who're experienced in crypto, wouldn't need this in the first place.

Nonetheless, do you think that a Bank of Crypto will happen anytime soon? If so, why?

Haven't you ever read the slogan on the blockchain webpage? "Blockchain is your own Bank" so we don't need that. What we need now is infrastructure to facilitate the use of cryptocurrency in the real world such as payment cards. Maybe this will be better than making a cryptocurrency bank.

[barbara44]

What is so hard in storing and protecting cryptocurrency here now that we still need the middlemen that we are trying to eliminate and I see this your post as conspiracy with banks to still continue to elevate and promote middlemen in pour transaction. We have wallets that are much secured and not so difficult for people to get and use, and if we are to even look at what a middleman should be involved here, it is the aspect of educating people on the use of cryptocurrency and the wallet.

People get hacked and scammed easily of their cryptocurrency because they actually have little knowledge of how to use them, and you know that people are very lazy when it comes to further research on how to make use of some of the wallet and which wallet is best secured for people to use without having to start thinking of keeping it with third party called banks again.

[ivaf]

There was already an attempt to create such a bank, while the attempt failed. There are too many permissions and agreements that are currently unrealistic to obtain (look, for example, on the Libra project - they also cannot get regulatory approvals).
The project was called Polybius (now renamed Osom). The topic in the English section of the forum has been deleted, there is a topic in the Russian locale: https://bitcointalk.org/index.php?topic=1907106.0

[Obito]

Considering that most people nowadays often find it hard to store and protect their cryptocurrencies, it's best to delegate the responsibility to a middleman. A bank of crypto would fit the bill nicely, as people would be able to secure their cryptocurrencies without ever having to follow the necessary precautions to prevent hacks or theft. As long as the bank of crypto is highly regulated by the government, then it'll be here to stay for a long time. Still though, not everyone will agree to this as it greatly defeats the whole purpose of crypto and Blockchain technology. The idea of a bank providing crypto services would only prove to be viable for newcomers into cryptocurrency. People who're experienced in crypto, wouldn't need this in the first place.

Nonetheless, do you think that a Bank of Crypto will happen anytime soon? If so, why?

Considering the fact there will be a middle-man in crypto bank destroys crypto purpose. Although it has certain benefits I just do not think that it will work the way we imagined even it is been highly regulated by government. Big companies was once been hacked by random intelligent people although it looks like not penetratable though, and crypto could only be use within the technology itself that is why they are also prone into hacking, either way hackers could make their way to penetrate our security in a manner of greed.

[pedpedped101]

@OP, nothing of such can happen, which it will result into a lot of issues.
The question I asked myself was that, "who are those that will be in charge?" Is it government that want to centralize crypyocurrency? Is it a group of people or individuals that will at anytime come to tell you that their system has been hacked? Hese and many more are why it might not work.

[Baby Dragon]

Yes, that's against to the purpose of crypto for decentralization although some altcoins are actually open to this idea and be governed by the authoritative agency. I still see this as an idea that's hard to execute but I think some countries or company are looking to this already.
But once this has been established, I don't fully say that they will be secured as the banks today are also being attacked by hackers.

But wouldn't it be against the concept of crypto currency if these crypto bank thing is controlled by authority or government official's involvement? I feel if this happens then they will slowly start dominating the crypto world one by one and not sure where this will lead us. I have seen someone tried opening bitcoin ATM in and he got arrested for the same.

Indeed, its like losing its real intention and desires. Also, don't you think that if it finally happens government will not take advantage on it? of course they won't allow it unless they are gaining some benefits from it. Governments have different way of thinking so are we but most of them are only thinking for their own benefits, I just don't think that it will turn out good but it seems possible particularly these days that everything involves technology. Well despite of that I think i'll just support it, its still crypto and I do believe that they will not establish something that isn't worth it.

[Colt81]

Considering that most people nowadays often find it hard to store and protect their cryptocurrencies, it's best to delegate the responsibility to a middleman. A bank of crypto would fit the bill nicely, as people would be able to secure their cryptocurrencies without ever having to follow the necessary precautions to prevent hacks or theft. As long as the bank of crypto is highly regulated by the government, then it'll be here to stay for a long time. Still though, not everyone will agree to this as it greatly defeats the whole purpose of crypto and Blockchain technology. The idea of a bank providing crypto services would only prove to be viable for newcomers into cryptocurrency. People who're experienced in crypto, wouldn't need this in the first place.

Nonetheless, do you think that a Bank of Crypto will happen anytime soon? If so, why?

I think there are only few people who will only store their cryptocurrency in banks because most people will rather store all of their crypto in their own crypto wallet. Storing in banks is not 100% safe, that is why keeping all of your crypto is still the safest way especially if you are using a hardware wallet, after all cryptocurrency is not like fiat that it is good to store it at the bank.

[pundit]

I think need of crypto bank for a just securing your crypto assets is not a good idea. Crytocurrencies have many trusted secured crypto wallets hardware wallet and software wallets both and these wallets are secured with private key which noone knows other than the owner of that wallet. If such high security cannot keep our cryto assets secure than how can we trust on banks. Can't banks software/wallet be hacked by hackers? Crypto banks will only charge the fee for keeping your assets but they cannot provide you better security guarantee.

[Katashi]

Having a trusted third-party to store your crypto is beneficial to newbies and for some who are lazy enough to study on how to secure their tokens. i am not against it but if you are here on this space long enough then you should know by now how important it is to have full control on the coins you are holding.

[stephanirain]

Considering that most people nowadays often find it hard to store and protect their cryptocurrencies, it's best to delegate the responsibility to a middleman. A bank of crypto would fit the bill nicely, as people would be able to secure their cryptocurrencies without ever having to follow the necessary precautions to prevent hacks or theft. As long as the bank of crypto is highly regulated by the government, then it'll be here to stay for a long time. Still though, not everyone will agree to this as it greatly defeats the whole purpose of crypto and Blockchain technology. The idea of a bank providing crypto services would only prove to be viable for newcomers into cryptocurrency. People who're experienced in crypto, wouldn't need this in the first place.

Nonetheless, do you think that a Bank of Crypto will happen anytime soon? If so, why?

If there will be financial institution for cryptocurrency, then it would be regulated and not decentralized. It will not be the cryptocurrency that we know. Though it can reduce the scams in the market since it is regulated, it is also more prone to abuse of power over its customers. Personally, I believe that it will not be good idea but if there will be a way in which crypto is still decentralized but somewhat regulated and can be still anonymous, it will be perfect.

[Doell]

bank of crypto turned out to be already there and many have given answers related to it in one page ,I think too many banking companies that undermine customers and secure will only be my own responsibility in a personal wallet not giving full responsibility to others actually attracts attention but I prefer to be in the anonymous category for crypto and manage all assets is more profitable for me

[spadormie]

If it is a physical bank for cryptocurrency as a whole, it SHOULD covers all of cryptocurrecny. What I mean in here is they should have all ERC-20 tokens and bitcoin. I just don't know if those coins that are private should be included or those coins that aren't listed in exchange should be since many people are hodling those. And where should this bank starts?

[xiboothrezi]

there are a few actual banks of crypto if you think about it
the most well known one would be Coinbase
CryptoCapital is another i have heard of that seems to be established but ive never used them myself

That's right, and CoinBase is the best for this field. Moreover, CoinBase has been around a long time, if I'm not mistaken since 2012. With strong products and collaboration, CoinBase has quite a lot of users. Moreover, it is very real use for real life, one of which is in collaboration with several companies adding bitcoin payment processing services to traditional payment companies.

[huige007]

bank of crypto turned out to be already there and many have given answers related to it in one page ,I think too many banking companies that undermine customers and secure will only be my own responsibility in a personal wallet not giving full responsibility to others actually attracts attention but I prefer to be in the anonymous category for crypto and manage all assets is more profitable for me

I am also not in favor of crypto banks. Crypto banks sound cool but the problem is that this strategy can reveal some information about holders. Nobody wants to show his crypto currencies and holdings to others. One of the reasons why bitcoin and altcoins get attention of investors is anonymity. Due to this, people are able to keep bankers and government away from what totally and solely belongs to them.

[justdimin]

Crypto bank for the reason of unable to protect is not making any sense. If you decide that you will start making use of cryptocurrency then you should be ready to handle it yourself and take the risks, oh and by the way, who even said that people can't protect their coins? There are hardware wallets like Trezor and Nano and you can as well save up your 12 word phrase and store it in several places to make sure it's safe. You can write it down on paper and keep it, and also save it other places where it is safe.

Even wallets like Coinbase are already safe and they offer services like banks; they have a Coinbase VISA debit card which you can use to spend your bitcoin anywhere whether online or ATMs worldwide. Their wallet is secured and they have a cold storage. There are platforms that lets you use your crypto assets to take loan online such as Nexo. So, I don't see the need to be talking about any other thing.

A crypto bank will attract more number of new people to adopt cryptocurrencies, I agree. But, I doubt that governments from all over the globe will come forward for the reason of familiarizing cryptos; I mean some governments are already against cryptos whereas most governments are yet to unveil their stand against cryptos. Only in a crypto friendly government, we can expect a regulated crypto bank to function like you mentioned; it may take decade of time, I am afraid.

Moreover, there could be a chances for regulated crypto banks for the purpose of earning interests for your capital. Again you need legal status for cryptos .

[toast]

bank of crypto turned out to be already there and many have given answers related to it in one page ,I think too many banking companies that undermine customers and secure will only be my own responsibility in a personal wallet not giving full responsibility to others actually attracts attention but I prefer to be in the anonymous category for crypto and manage all assets is more profitable for me

an idea or a breakthrough from a system improvement must still be a mistake and with deficiencies in a system there will definitely be an improvement and in my opinion the existence of a bank is a breakthrough that is needed later but for now it cannot yet occur and is still contrary to the bank system and crypto currency economy system

[ufaiz50]

I don't know, but we don't need a third party for P2P transactions, we usually do transactions through third parties, that's the benefit of traditional banks. In this case we can also secure our own wallet, as you said we don't need a bank just to secure the wallet. Maybe if there is a system of deposits and bank loans can be created, but loans and deposits in crypto must be accompanied by information and letters.

[kanayaTabitha]

In my opinion, many crypto experts and investors in the crypto world do not need a crypto bank to secure their assets, because they prefer to keep on their respective wallets, let alone storage in wallets is very secure and more Easy to access. If there is a crypto bank and many investors keep their assets there it will be very difficult to process a fast transaction.

Hardware wallets is quite enough for securing crypto assets.
after all the "anonymous" wallet is more secure than we have to register our identity to the banks. Maybe our identity will leak out and many bad guys will targeting us and it might be more dangerous.

[Strongkored]

Meaning of banks is

A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services, such as wealth management, currency exchange, and safe deposit boxes. There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national government or central bank.

https://www.investopedia.com/terms/b/bank.asp

With that meaning, Crypto banks will make crypto a centralization, if the bank give access to PK then the wallet (have access to the PK) is enough to store our crypto assets.

It would be wiser if we as owners of the cryptos are responsible for what we have, compared to leaving it to the Bank to save it because it will be the same as giving other parties access to our assets.