2021-05-05 CNBC - Bitcoin is coming to hundreds of U.S. banks this year

[acquafredda]

Key Points

- For the first time, customers of some U.S. banks will soon be able to buy, hold and sell bitcoin through their existing accounts, according to crypto custody firm NYDIG.
- Banks are asking for bitcoin because they can see their customers sending dollars to Coinbase and other crypto exchanges, according to Yan Zhao, president of NYDIG.
- After rolling out the initial bitcoin product, NYDIG plans on other services, including debit card rewards paid in bitcoin and a new type of bank account that is FDIC insured, but pays interest in bitcoin, he said.

https://www.cnbc.com/2021/05/05/bitcoin-is-coming-to-hundreds-of-us-banks-says-crypto-firm-nydig-.html

You know the story, after years of denial and dismissal, plus some wishful thinking about DLT and Blockchain what are banks doing right now? Integrating bitcoin withing their offerings to allow their customers to go in/out fiat via their bank accounts.

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[Streets 2.0]

Bitcoin is coming. Many skeptics who previously only brushed off this topic admit their delusion today. This is great news, I would not be surprised that it will support the market for another rise. Obviously, the more financial institutions, especially in the USA, will accept, store and convert cryptocurrency, the better everyone who deals with this. Strengthening the market, expanding the community, access to new money in trade.

[acquafredda]

Imagine that even in Italy that is already possible: Hype a challenger bank is powered by Conio which proved a wallet, a brokerage and a custody solution within the banking app and Banca Generali is going to follow suit soon.
https://www.forbes.com/sites/lawrencewintermeyer/2020/12/15/banca-generali-invests-in-bitcoin-custody-service-as-institutions-warm-to-crypto/
The US are lagging behind!

[Nahratsak]

Well, this was definitely to be expected, as well as the fact that the national banks sooner or later want to control every last expenditure of their "clients".

[aoluain]

hmmmm, I wonder what (would) Satoshi think about this given Bitcoin was designed
to side step the banking institutions?

I suppose it was inevitable.

When institutional investors are showing interest in Bitcoin and the possibility
of some ETF's being passed it was only a matter of time before the banks got involved.

On a seperate issue, its curious how 2 days ago and to date, when this news came
out the Bitcoin markets didnt react at all!

[Obito]

hmmmm, I wonder what (would) Satoshi think about this given Bitcoin was designed
to side step the banking institutions?

I suppose it was inevitable.

When institutional investors are showing interest in Bitcoin and the possibility
of some ETF's being passed it was only a matter of time before the banks got involved.

On a seperate issue, its curious how 2 days ago and to date, when this news came
out the Bitcoin markets didnt react at all!

Banks have to adapt and bitcoin is closely tied to fiat so yes I really think that this coexistence is an inevitable thing to happen. Satoshi didn't want to replace banking institutions, satoshi wanted to create an alternative. Also this is good because banks can intimately see how they are getting fucked over by bitcoin with a lot of people taking away money from them rather than asking for a loan from them.

[Streets 2.0]

I think this attempt will be precisely in this. But I also think that the attempt will fail, or at least take a tiny share of the market. Not only SATOSHI wanted to get away from centralized banking finance, every reasonable person who knows how to count money and count in principle wants to do so. The fact that banks around the world give in the form of interest on deposits is simply ridiculous, what they manage to do with this invested money during the period of their circulation in the bank will multiply their denomination several times. So they earn on us for a long time and still. With the advent of decentralized finance, people now have a smarter and much more profitable alternative to banks, and that's great!

[bbc.reporter]

This is very positive news for the bitcoin maximalists. However, never trust mainstream media news. Beginning of the bear market, news will be very negative again. Everything about them is clickbait and what the readers want to read and hear.

[Lucius]

The news is actually almost a year old, because even then a positive decision was made that banks will be able to provide a service related to cryptocurrencies.

The OCC serves to charter, regulate and supervise national banks. Today’s OCC letter clarifies that national banks have the authority to provide fiat bank accounts and cryptocurrency custodial services to cryptocurrency businesses. This clarification from the OCC may open the doors for larger financial institutions to be more comfortable providing traditional bank accounts to cryptocurrency companies, as well as actually provide custodial services for customers’ private keys.

This is not just the case in the US, it has happened before in the EU (Germany) and is likely to spread to other parts of the world. Banks exist to make a profit for their owners and to control the population through them, and we all know that most banks operate in the gray zone - and if they can make money by offering crypto services, I never doubted they would not take advantage of it.

However, never trust mainstream media news. Beginning of the bear market, news will be very negative again.

What does trust in the media have to do in this particular case? These are solid facts, the media didn't invent a story about the connection between crypto and banks, did they?

I see that you are still in the constant belief that the bear market will come soon, but there is a possibility that the past will not repeat itself as some expect. Yes, I know we need to prepare for some new crypto winter - but personally I don’t like to think of winter when summer is just knocking on my door.

[acquafredda]

The news is actually almost a year old, because even then a positive decision was made that banks will be able to provide a service related to cryptocurrencies.

The OCC serves to charter, regulate and supervise national banks. Today’s OCC letter clarifies that national banks have the authority to provide fiat bank accounts and cryptocurrency custodial services to cryptocurrency businesses. This clarification from the OCC may open the doors for larger financial institutions to be more comfortable providing traditional bank accounts to cryptocurrency companies, as well as actually provide custodial services for customers’ private keys.

This is not just the case in the US, it has happened before in the EU (Germany) and is likely to spread to other parts of the world. Banks exist to make a profit for their owners and to control the population through them, and we all know that most banks operate in the gray zone - and if they can make money by offering crypto services, I never doubted they would not take advantage of it.

However, never trust mainstream media news. Beginning of the bear market, news will be very negative again.

What does trust in the media have to do in this particular case? These are solid facts, the media didn't invent a story about the connection between crypto and banks, did they?

I see that you are still in the constant belief that the bear market will come soon, but there is a possibility that the past will not repeat itself as some expect. Yes, I know we need to prepare for some new crypto winter - but personally I don’t like to think of winter when summer is just knocking on my door.

As I wrote above you missed the update with respect to the fact that Italy has been a pioneer in this regard: an old world bank since March 2020 has allowed its customers (1.2 million) to buy, sell and hold bitcoin (with a 2-of-3 multisig wallet) securely.
https://www.hype.it/cryptocurrency
The future is heading in that direction.

[bbc.reporter]

However, never trust mainstream media news. Beginning of the bear market, news will be very negative again.

What does trust in the media have to do in this particular case? These are solid facts, the media didn't invent a story about the connection between crypto and banks, did they?



I see that you are still in the constant belief that the bear market will come soon, but there is a possibility that the past will not repeat itself as some expect. Yes, I know we need to prepare for some new crypto winter - but personally I don’t like to think of winter when summer is just knocking on my door.

Yes they are solid facts, however, there are also banks that prohibit their users from using their accounts from buying or selling bitcoin and other cryptocoins. Where is this storyline during this bull market? I was only telling everyone that mainstream news media will try to control the storyline depending on sentiment and what gives the clicks.



Breaking: China's state-owned bank, CITIC Bank, announced that in order to maintain the legal currency status of the RMB and prevent money laundering risks, institutions and individuals are prohibited from using this bank account to purchase and trade Bitcoin and Litecoin, etc.

Source https://mobile.twitter.com/wublockchain/status/1390574905465327618?s=12



I never said the bear market will come soon. I said we should be realists, assume that the bear will pounce unexpectedly and we should be ready.

[Lucius]

As I wrote above you missed the update with respect to the fact that Italy has been a pioneer in this regard

I did not miss the update, but I thought that this thread was intended for US banks and their involvement with cryptocurrencies - and according to the link I posted, banks got the green light for such business a little less than a year ago. Who was first is less important, because we all know where the most money comes from - and now it will probably come even more, because people trust banks and the centralized system more than anything else - imagine that you can come to your bank counter and buy/sell Bitcoin without having to know anything about cryptocurrencies.

Yes they are solid facts, however, there are also banks that prohibit their users from using their accounts from buying or selling bitcoin and other cryptocoins.

Why generalize and say that all banks prevented their clients from buying or selling cryptocurrencies, because as far as I know, few banks in the US have had such a business practice as, for example, Bank of America. Banks will be given the opportunity to expand their business to cryptocurrencies, but this is just an option that not all banks will accept.

Breaking: China's state-owned bank, CITIC Bank,

Why even mention the Chinese bank in the context of American banks? The Chinese government banned cryptocurrency trading a few years ago, which means that banks automatically blocked all payments and withdrawals to such companies.

I never said the bear market will come soon. I said we should be realists, assume that the bear will pounce unexpectedly and we should be ready.

From your posts it can be concluded that you are quite focused on the bear market, and I don't understand how everyone should prepare for something that can be months or maybe years away? It’s not that it’s going to happen overnight and catch us asleep...

[bbc.reporter]

@Lucius. Read what I was trying to talk about. It is not about the banks, it is about mainstream and bitcoin news media manipulation. The banks can accept or reject the cryptospace in any type of market, however, the news will media create the storylines that will give them the most clicks and hits. Presently it is bullish stories hehe.

Agreed that the bear market will not happen overnight but the bear can pounce within weeks also. The last time there was this bearish divergence in the MACD in an elevated level for bitcoin was the beginning of the bear market of January 2018.

[Theb]

“What we’re doing is making it simple for everyday Americans and corporations to be able to buy bitcoin through their existing bank relationships,” Sells said. “If I’m using my mobile application to do all of my banking, now I have the ability to buy, sell and hold bitcoin.”

I guessed this count towards credit card accounts as well right? I've seen many posts regarding people being denied of their crypto purchases by their banks as most of them classified it as a risk factor when it comes to lending money out, if they include this I guesses this is a big step up for the US. Aside from that with the banks recognition for Bitcoin I think it just gives more confidence to their clients that their Bitcoin related transaction won't be frozen by them or anything that will cause an issue this is in fact a good news, wondering why it didn't get any kind of noise though.

[zanezane]

I understand why they do it, but will many people be interested in it?

I'm sure that many will be interested in it because the banks that will integrate it will probably be advertising and recommending this to their clients and you know how the masses think, if it interests them, they will probably buy it.

[The Sceptical Chymist]

From that article:

Until now, bitcoin adopters have relied on apps from a new generation of fintech players like free trading brokerage Robinhood, payments giants PayPal and Square, or crypto-centric firms like Coinbase.

Lol.  For one thing, Robinhood and PayPal are newcomers in the crypto space and they don't actually let you buy and sell real bitcoin, i.e., you don't control the private keys to the bitcoin you bought.  And those "bitcoin adopters" have been using many more methods of acquiring bitcoin than Coinbase.  Whoever wrote this article sounds pretty clueless about the history of bitcoin, because the earliest adopters mined it and then later bought and sold it on Mt. Gox and other exchanges.  There's a lot left out here--and this is why I can't stand mainstream news sites.

Now as far as banks letting you buy and sell bitcoin, I'll believe it when I see it.  Until then it's just talk, and who knows if they'll actually let you withdraw the bitcoin you buy into your own wallet (like Coinbase does).  We'll see.

[sanjusajan]

It is great news to hear that bitcoin is coming to us bank this year because it will be easier to purchase and sell the bitcoin through the bank and as we know the bitcoin is the top coin than all of the crypto currency so it should be good news to all of the holders.