How Banks Went from Dismissing Bitcoin, to Seeing it as a Revolution

[JessicaVL]

Bitcoin is contrary to the traditional financial system in almost every way. Where banks are centralized, Bitcoin is decentralized. In fact, Bitcoin is a response to the failings of the global financial markets, so it only seems natural that banks and governments would be threatened by it. However, there’s been a change in sentiment towards the cryptocurrency market as of late. More and more banks and governments are embracing the technology, in a move that seems a far cry from their initial stances on Bitcoin. So, let’s take a look at how banks went from dismissing Bitcoin, to seeing it as a revolution.

A brief history of Bitcoin
Bitcoin was invented by Satoshi Nakamoto, who released the technology’s white paper in October of 2008. At the time, the global financial markets were in chaos - we were in the midst of a recession, and banks were falling apart. It’s no coincidence that the headline “Chancellor on brink of second bailout for banks” was embedded into the genesis block of the Bitcoin network. Nakamoto was making a statement on the failures of financial institutions around the world.

Since then, Bitcoin has gone on to lead the way for an industry which has an overall market cap of  $190,832,488,869 (at the time of writing). The crypto asset industry is thriving, with Bitcoin at its helm.

Bitcoin and the Banks
On a global level, the banks weren’t exactly thrilled about Bitcoin to begin with. JPMorgan and Bank of America have both issued statements about cryptocurrencies this year. Bank of America stated that cryptocurrencies have three main risk factors. The first, is that  "Emerging technologies, such as cryptocurrencies, could limit our ability to track the movement of funds,” making it harder for them to comply with KYC and anti-money-laundering regulations.

They continue, “Further, clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies."

They then outline the third risk factor as follows: "Additionally, the competitive landscape may be impacted by the growth of non-depository institutions that offer products that were traditionally banking products as well as new innovative products. This can reduce our net interest margin and revenues from our fee-based products and services. In addition, the widespread adoption of new technologies, including internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services as we grow and develop our internet banking and mobile banking channel strategies in addition to remote connectivity solutions."

If this seems a little complicated, let’s take a look at what JPMorgan has to say:
"both financial institutions and their non-banking competitors face the risk that payment processing and other services could be disrupted by technologies, such as cryptocurrencies, that require no intermediation. New technologies have required and could require JPMorgan Chase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies.”

https://www.youtube.com/watch?v=WjzgQpTRSTg

While both of these banks have their reservations, it should be immediately noted that JPMorgan announced earlier this year, that they would become the first major US bank to introduce its own digital asset for real-world use. In 2017, Jamie Dimon, CEO of JPMorgan Chase, said that Bitcoin is a “fraud” and that any employee found to be trading it would be fired for being “stupid”. Nice.

Dimon has clearly had a change of heart since then, as he announced that he now recognizes blockchain’s potential influence on the future of the global financial system. JPMorgan have released a blockchain network, Quorum, which can be used to keep track of financial data.

https://twitter.com/haileylennonbtc/status/1096057126756073472

Whether you’re interested in trading Bitcoin or JP Morgan stock, eToro offers an excellent trading platform that allows you to either dive into the deep end, or ease your way in with helpful trading tools.

On a global level, banks in Germany will be able to store and sell Bitcoin and other cryptocurrencies from 1 January 2020, thanks to new legislation that embraces digital assets.

So, why the sudden change of heart? Banks originally dismissed Bitcoin as being a fad, but 11 years on the cryptocurrency is still going strong and has proven them wrong. There is so much potential for growth within the financial sector as a result of blockchain technology, and banks are finally starting to see it. That’s how banks went from dismissing Bitcoin, to seeing it as a revolution - and it’s just getting started.

https://www.youtube.com/watch?v=Pl8OlkkwRpc

Bitcoin future
So, we’ve taken a look at how banks went from dismissing Bitcoin to seeing it as a revolution, and it’s pretty clear that financial institutions are finally sitting up and taking notice. Bitcoin, and other digital assets, have the potential to completely revolutionize the banking system. They can coexist, and there’s no reason why they shouldn’t.

https://tokenhell.com/how-banks-went-from-dismissing-bitcoin-to-seeing-it-as-a-revolution/

[CryptoBry]

And maybe this is why some big banks are now thinking and planning to have their own version of cryptocurrency though it must be a centralized one (which of course can be raising some eyebrows if they can be successful). Anyway, what is clear is that Bitcoin has been and will be a concern of influence which can be affecting how banks can be reacting. Will it mean that one day the banking industry will also be riding the Bitcoin bandwagon? That can be a possibility because where there is a possibility to make some profits banks will be there for you. However, back 10 years ago, the same situations are not the same right now so this is partly one reason why we are not seeing an avalanche of interest with Bitcoin especially from the masses as they are now a little more comfortable dealing with the usual banks, waiting for the time when there can be another recessions and banks can be failing big time.

[Bitcoin_bullish]

... This can reduce our net interest margin and revenues from our fee-based products and services. ...
... could require substantial expenditures to modify or adapt our existing products and services..

... face the risk that payment processing and other services could be disrupted by technologies, such as cryptocurrencies, that require no intermediation.
New technologies have required and could require JPMorgan Chase to spend more to modify or adapt its products ...

This is they key. It is all about profit and cost to adapt for them and since Bitcoin is right now established method of payments, they already see their profits limiting. They obviously realize Bitcoin is a threat to their corrupt traditional banking methods and they are trying to stop its growth by spreading fud and lies.

[longyenthanh]

Banks are in no way fearing bitcoin and other cryptocurrency. It's a thought that exists in crypto community only. XRP is not a CC but a centralized digital currency. Banks along with other financial institutes will never adopt decentralized cryptocurrency like bitcoin rather they will only adopt currencies  like xrp.

[avikz]

Banks are in no way fearing bitcoin and other cryptocurrency. It's a thought that exists in crypto community only. XRP is not a CC but a centralized digital currency. Banks along with other financial institutes will never adopt decentralized cryptocurrency like bitcoin rather they will only adopt currencies  like xrp.

Banks are indeed fearing cryptos. There are many countries where bitcoin doesn't have a legal framework, but the banks have banned them. They are literally freezing accounts of crypto traders. If they aren't bothered about cryptos, why would they do that? Cryptos are essentially seen as a business threat by the banks! But after 11 years of existence, probably some banks re fed up with the battle and trying to adopt it! Given a chance, banking lobby would be the frontrunner in opposing crypto adoption!

[Wintersoldier]

Banks are in no way fearing bitcoin and other cryptocurrency. It's a thought that exists in crypto community only. XRP is not a CC but a centralized digital currency. Banks along with other financial institutes will never adopt decentralized cryptocurrency like bitcoin rather they will only adopt currencies  like xrp.

On this way they could possible have their duties accomplished because believe me or not, even banks that has a very promising plan for their people will have a hard time to implement projects if they couldn't utilize taxes from the people. Whereas, the possibility of unifying banks/government and cryptocurrency could be achieve through the cryptocurrencies like XRP. Though, it is not our dream that banks could interfere with the cryptocurrency, there is currently no way of making the entire country great without funds intended only for the development of it.

[putukin]

Banks are in no way fearing bitcoin and other cryptocurrency. It's a thought that exists in crypto community only. XRP is not a CC but a centralized digital currency. Banks along with other financial institutes will never adopt decentralized cryptocurrency like bitcoin rather they will only adopt currencies  like xrp.

On this way they could possible have their duties accomplished because believe me or not, even banks that has a very promising plan for their people will have a hard time to implement projects if they couldn't utilize taxes from the people. Whereas, the possibility of unifying banks/government and cryptocurrency could be achieve through the cryptocurrencies like XRP. Though, it is not our dream that banks could interfere with the cryptocurrency, there is currently no way of making the entire country great without funds intended only for the development of it.

I think that XRP is not the best way to connect banks, government and people. People need decentralization, and if banks use crypto, this is no longer possible.

[longyenthanh]

Banks are in no way fearing bitcoin and other cryptocurrency. It's a thought that exists in crypto community only. XRP is not a CC but a centralized digital currency. Banks along with other financial institutes will never adopt decentralized cryptocurrency like bitcoin rather they will only adopt currencies  like xrp.

Banks are indeed fearing cryptos. There are many countries where bitcoin doesn't have a legal framework, but the banks have banned them. They are literally freezing accounts of crypto traders. If they aren't bothered about cryptos, why would they do that? Cryptos are essentially seen as a business threat by the banks! But after 11 years of existence, probably some banks re fed up with the battle and trying to adopt it! Given a chance, banking lobby would be the frontrunner in opposing crypto adoption!

Banks and governments are banning crypto because they dont like it and that doesn't mean they have fear of cryptocurrency. Governments have also banned drugs and weapons , is it also due to fear? Cryptocurrency adoption rate is very slow and there are not much areas where you can use bitcoin. We have to wait and see how cryptocurrency show up in fear years before making any conclusion.

[naomi-the-cat]

Banks are ready to use blockchain first of all. And only several of them are accepting crypto

[Lambowei]

It is a revolution, but this is still the start of it.

[BrewMaster]

i don't think banks are there yet actually. they are still in the early stages of denial and resistance against accepting bitcoin and the fact that it is doing what they were doing in a lot better, safer, cheaper way without any limitations.
right now banks are either denying bitcoin is a thing or they are going against it so far as they even close accounts of their customers who use their account to buy bitcoin. in some rare cases that banks show any interest they are showing interest in the technology not bitcoin.

[longyenthanh]

Whereas, the possibility of unifying banks/government and cryptocurrency could be achieve through the cryptocurrencies like XRP. Though, it is not our dream that banks could interfere with the cryptocurrency, there is currently no way of making the entire country great without funds intended only for the development of it.

Do we really need anything like XRP where all stake holders are getting united? If projects like XRP is the solution then its better we not get unified with govt/banks. XRP and other such projects are no way near to the concept of cryptocurrency proposed initially by satoshi.
If we want to side with crypto then we have to excuse from banks.

[avikz]

Banks are in no way fearing bitcoin and other cryptocurrency. It's a thought that exists in crypto community only. XRP is not a CC but a centralized digital currency. Banks along with other financial institutes will never adopt decentralized cryptocurrency like bitcoin rather they will only adopt currencies  like xrp.

Banks are indeed fearing cryptos. There are many countries where bitcoin doesn't have a legal framework, but the banks have banned them. They are literally freezing accounts of crypto traders. If they aren't bothered about cryptos, why would they do that? Cryptos are essentially seen as a business threat by the banks! But after 11 years of existence, probably some banks re fed up with the battle and trying to adopt it! Given a chance, banking lobby would be the frontrunner in opposing crypto adoption!

Banks and governments are banning crypto because they dont like it and that doesn't mean they have fear of cryptocurrency. Governments have also banned drugs and weapons , is it also due to fear? Cryptocurrency adoption rate is very slow and there are not much areas where you can use bitcoin. We have to wait and see how cryptocurrency show up in fear years before making any conclusion.

Please don't take fear in literal meaning. Here it means risk, in financial terminology! Guns and drugs are also banned for similar reason - risk! Banks can see risks in cryptos and that's why they are willing to ban it.

I agree that crypto adoption rate is slow in majority of the countries! However, it is very easy for people to convert their cryptos in fiat whenever needed and then they can use it anywhere they want! So it's not a conclusion of any sort but the reality! I hope you got my point!

[Slow death]

banks survive thanks to the customers they have... If a person created a new currency that had nothing new in terms of innovation, but 90% of the people in the world accept to use and governments accept to use, so banks will accept to use this new currency that has nothing new in terms of innovation. It's all about having a lot of customers and if governments accept it! When a few years from now in every country in the world has more than 60% of people using bitcoin, then banks will be the first to accept bitcoin

[JeffBrad12]

Banks are in no way fearing bitcoin and other cryptocurrency. It's a thought that exists in crypto community only. XRP is not a CC but a centralized digital currency. Banks along with other financial institutes will never adopt decentralized cryptocurrency like bitcoin rather they will only adopt currencies  like xrp.

It's a public secret that decentralization is their imminent enemy and they are just adopting the blockchain anyway. it will not bring any huge effect and yes what bank wants is sort of like XRP which basically a crypto version of centralized currency and that's just that. other than XRP like any decentralized crypto out there they just don't care.

[YuginKadoya]

i don't think banks are there yet actually.

I also believe that the bank is in the stage of just briefly accepting Cryptocurrency they surely in the stage of still fearing the volatileness of cryptocurrency, We once have an online wallet in our country that are allowing us to withdraw cryptocurrency and turn it to fiat by withdrawing it in the ATM by means of cardless transaction in one of the notable banks in my country, but when the midst of bear market hits and the price of Bitcoin shrink down to $3000 USD they stop that kind of transaction and there are no valid reason or what so ever that could stop them from giving that service and all I can think of was the decrease of the price of Bitcoin.

So in my opinion Banks are not there yet and ready to embrace the volatileness of cryptocurrency.

[Asuspawer09]

I think it is natural for the banks to be afraid in cryptocurrency since they are more into fiat money and bitcoin was just the counterpart of it as a digital money or digital currency.

We could easily use bitcoin as a bank we could easily see it as similar to storing money but bitcoin was just more advance in banks since storing bitcoin in a bitcoin wallet was easily accessible in my opinion, also vice versa since the bitcoin was not yet used in a lot of transaction we still cannot use it in a transactions but also we could easily convert it to fiat money. I think the banks could easily use bitcoin as an asset since they already recognized Bitcoin as a revolutionary technology.

[hatshepsut93]

i don't think banks are there yet actually. they are still in the early stages of denial and resistance against accepting bitcoin and the fact that it is doing what they were doing in a lot better, safer, cheaper way without any limitations.
right now banks are either denying bitcoin is a thing or they are going against it so far as they even close accounts of their customers who use their account to buy bitcoin. in some rare cases that banks show any interest they are showing interest in the technology not bitcoin.

I think the vast majority of banks neither denies nor fights Bitcoin, they actually ignore it because they don't see any data that could show that Bitcoin is a threat to them. They don't see their users massively abandoning them in favor of Bitcoin and they don't see users doing crypto-related transactions, so why should they take any stances on crypto, especially if the overall adoption is still so low. It's better to just wait and see how it will unfold, and then act accordingly.

[samcrypto]

i don't think banks are there yet actually. they are still in the early stages of denial and resistance against accepting bitcoin and the fact that it is doing what they were doing in a lot better, safer, cheaper way without any limitations.
right now banks are either denying bitcoin is a thing or they are going against it so far as they even close accounts of their customers who use their account to buy bitcoin. in some rare cases that banks show any interest they are showing interest in the technology not bitcoin.

Banks in my place already show a big support to blockchain technology but they didn’t mention cryptocurrency simply because that’s a big threat for them. They still on a resistance to accept the fact that crypto transactions are better and faster now compare to the bank transfer. If they see this as a big thing, they should start adopting now or at least support cryptocurrency.

[Artemis3]

i don't think banks are there yet actually. they are still in the early stages of denial and resistance against accepting bitcoin and the fact that it is doing what they were doing in a lot better, safer, cheaper way without any limitations.
right now banks are either denying bitcoin is a thing or they are going against it so far as they even close accounts of their customers who use their account to buy bitcoin. in some rare cases that banks show any interest they are showing interest in the technology not bitcoin.

Banks in my place already show a big support to blockchain technology but they didn’t mention cryptocurrency simply because that’s a big threat for them. They still on a resistance to accept the fact that crypto transactions are better and faster now compare to the bank transfer. If they see this as a big thing, they should start adopting now or at least support cryptocurrency.

You cannot return the genie into the bottle, and covering their eyes won't make Bitcoin disappear, it is a reality they will have to face. If they want to see it as asset, fine. Their concept of money involves fractional reserve, and they can't do that to Bitcoin without getting caught. So its ok if they treat it like some asset if that's easier for them to digest.

They have the opportunity to join and see what they can do in the new economy, they can become an exchange, lend and store but using full reserve rules.

Some of their business will have to change, or people will just bypass them. I think they will either way shrink in size. As more people get into Bitcoin, there is less and less need to use the bank.

They could use blockchain, and the likes of ripple among themselves, but the new reality is that they will have to lower the fees for wire transfers. They have this giant competition called Bitcoin, which can easily move millions in mere hours worldwide for a few cents.