Banks offering investing in Bitcoin

[PeRo]

Since they couldn't suppress Bitcoin, some banks are now endorsing investing in it. I remember seeing that I could buy and sell Bitcoin (and other cryptocurrencies if I remember correctly) straight from my business banking app when I was working on financials in some company a while ago. Now I wonder, do they just want to enter the market and profit off of it or are there some other intentions? Since they offer an exchange for business users, could it be possible that the system could be used so the government could actually tax Bitcoin by taxing the company investing in it trough the bank account?

Maybe I'm overthinking this, but when banks are involved with Bitcoin it always seems like an attempt of gaining some sort of control over it or push it to be more centralized in some way. And seeing more and more of them getting involved doesn't really comfort me.

What do you guys think, should banks even be in 'the game'?

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[Zaguru12]

What do you guys think, should banks even be in 'the game'?

As the adoption of bitcoin increases it poses a serious threat to the use of banks for day to day activities so it is actually not surprising to see banks showing interest into bitcoin by incorporating it into there system. I would say it is done just not to lose costumers or to gain more.

Although it would help spread the news of bitcoin more since many people are interested in physical entities and banks involved in cryptocurrency would help spread awareness and adoption to these set of people. But overall it is not a save way because we all know that they would certainly require KYC. KYC, centralization and custodianship of one’s keys are what make crypto centralized exchanges scary to hold or trade cryptocurrencies on, for the banks it even more dangerous because it exposes you not to hackers only but to the government which is against the main purpose of bitcoin. Ones the government decides to take a hefty decision against bitcoin or cryptocurrency at large your funds could just easily be frozen through the dealing with banks.

[suzanne5223]

What do you guys think, should banks even be in 'the game'?

It's hard to know the true intention of the banks that are offering investment in Bitcoin but I am sure they will start like Paypal which makes it impossible for the user to transfer their BTC off their platform.
According to my prediction,
1. the reason why they (Banks) want to offer investment in BTC could be because BlackRock and other reputable investment company that has an interest in BTC ETF.
2. IMF's latest advice on regulating and taxing cryptocurrency instead of banning it.

[20kevin20]

When you’re investing in BTC through banks, you’re not owning the BTC you buy. It’s similar to investing in paper gold from banks - you buy a paper on which it’s written that you own a certain amount of gold. That in theory guarantees you own the real gold too and can claim it any time, but in reality who knows?

This is a fully custodial service and heavily centralized. Even if they surprisingly allow you to spend and receive using your own addresses, they’ll ask you to explain your transaction when large sums are involved or they decide to trigger the AML KYC laws. It sucks, and Bitcoin was purposely made to avoid these situations.

So of course banks will happily provide their users a way to quickly buy and sell BTC without having to learn how to use a wallet, how Bitcoin works and everything else. It solves two things for them: you don’t get the free finance and banks get to own the Bitcoin you buy for you. In some ways this is progress, but in others it’s them advancing with their plans of basically centralizing what can’t be centralized. They’re hungry for power, they’re sick of us being in control and it shows.

[ImThour]

That's a great addition as it will bring many boomers to try and invest directly in Bitcoin. Some of them were just lazy to google and search how to buy Bitcoin and follow all the steps.
I am pretty sure, this change is great for the overall future of the Bitcoin. This also removes one layer of doing extra KYC as the bank already has your information.

However, it's not your Bitcoin if they are just keeping it.

[TimeTeller]

That's a great addition as it will bring many boomers to try and invest directly in Bitcoin. Some of them were just lazy to google and search how to buy Bitcoin and follow all the steps.
I am pretty sure, this change is great for the overall future of the Bitcoin. This also removes one layer of doing extra KYC as the bank already has your information.

However, it's not your Bitcoin if they are just keeping it.

They maybe realizing that they can't beat this market, so why not join this market?
That is true, some people are lazy doing their job, so if it is under their bank, they will be more confident dealing with btc.
Well, that's a good start. Once they realize how to transact with btc and store their own satoshis, they will surely get their btc out of their banks.
But with banks doing business with bitcoin, it will surely add credibility to this market especially for previously non-crypto users.
Most users who are still not into crypto are still thinking that this market is a fraud or scam, but it is the people who are doing business are the ones who
are tainting the image of this market, not the market itself. They will understand this once they got a hold of their own satoshis.

[The Cryptovator]

It appears that the bank is likely interested in profiting from Bitcoin trading using fiat currency. When you purchase Bitcoin with fiat, the bank will levy charges, and the same applies when you sell it. However, it's unlikely that the bank itself is assuming the risks associated with Bitcoin's volatility. Instead, they may choose to partner or integrate with a cryptocurrency exchange to mitigate these risks. Additionally, if Bitcoin trading is legal in your country, the government may impose taxes on such transactions.

[PeRo]

When you’re investing in BTC through banks, you’re not owning the BTC you buy. It’s similar to investing in paper gold from banks - you buy a paper on which it’s written that you own a certain amount of gold. That in theory guarantees you own the real gold too and can claim it any time, but in reality who knows?

This is a fully custodial service and heavily centralized. Even if they surprisingly allow you to spend and receive using your own addresses, they’ll ask you to explain your transaction when large sums are involved or they decide to trigger the AML KYC laws. It sucks, and Bitcoin was purposely made to avoid these situations.

So of course banks will happily provide their users a way to quickly buy and sell BTC without having to learn how to use a wallet, how Bitcoin works and everything else. It solves two things for them: you don’t get the free finance and banks get to own the Bitcoin you buy for you. In some ways this is progress, but in others it’s them advancing with their plans of basically centralizing what can’t be centralized. They’re hungry for power, they’re sick of us being in control and it shows.

Thank you for explaining how it works, I haven't really researched on the system - I can't even find information about this (which is logical since it isn't in interest to be found). But of course, I knew that there is no 'clean' business there, you can clearly see that without even getting into detail.

I even considered investing trough the system, but luckily I never even brought up the suggestion. Lack of knowledge in some moments is a killer.

That's a great addition as it will bring many boomers to try and invest directly in Bitcoin. Some of them were just lazy to google and search how to buy Bitcoin and follow all the steps.
I am pretty sure, this change is great for the overall future of the Bitcoin. This also removes one layer of doing extra KYC as the bank already has your information.

However, it's not your Bitcoin if they are just keeping it.

I get that it can be a good addition for increasing the number of Bitcoin investors and growing the market. But there are big disadvantages as stated in the topic, which I think would bring more damage than good to Bitcoin. Are you worried that Bitcoins system could be affected in a bad way with banks entering the market?

[Z-tight]

I don't know the offer your bank is giving you, is it that you can buy BTC on exchanges with your bank credit and debit cards or directly from your bank app, if that is it then it is nothing new because most exchanges and crypto platforms support the use of bank cards to purchase BTC and crypto.

I don't think your bank is advertising that you can buy crypto directly from them, i have not heard about any bank which offers that service. It is going to be a complicated service for a bank to offer, are they going to transfer BTC to customers address of choice after purchase, and if they are to hold the BTC, is the customer going to open a separate account with the bank to view BTC balance, etc, this is why i think it is too complicated for a bank to offer this service, and maybe your bank was only telling you that you can buy BTC on crypto platforms using your bank details. It would also be strange to find a bank involved in moving BTC's.

[serjent05]

What do you guys think, should banks even be in 'the game'?

I am neutral on this since I don't mind if banks wanted to involve themselves in the Bitcoin industry.  Besides banks are business establishments too so it is not surprising if they adopt Bitcoin to take advantage of the possible profit they can get from the Bitcoin community.  Aside from that it is also a boosting factor for the Bitcoin market if banks accept it as one of their services since it will only prove that Bitcoin is legit.  This will also weaken the argument of Bitcoin being a scam or a Ponzi scheme.

[Nwada001]

The banking sector is already an anonymous investor in Bitcoin. Most of them already invested in the currency a long time ago but can't make it public because of regulation and attacks from outside.

If your bank is already showing you this kind of offer, then that's a great development considering that the government of that country has reduced the pressure they were using to tackle it and restricted the banks from engaging themselves in anything relating to crypto. And if that's actually true, then it could only mean one thing, which is that both the bank and the government of that country are trying to benefit from crypto.

Which is a "yes." They want to tax every account holder using their account to directly deal in crypto transactions because they could easily detect it and tax those using it. Right now, most governments are already feeling cheated since they can't stop their citizens from not using crypto. Why can't they be earning and benefiting from it? I believe that's the reason why they are now gradually moving from the hatred of Bitcoin to the tax and regulatory parts.

[jossiel]

Since they couldn't suppress Bitcoin, some banks are now endorsing investing in it. I remember seeing that I could buy and sell Bitcoin (and other cryptocurrencies if I remember correctly) straight from my business banking app when I was working on financials in some company a while ago. Now I wonder, do they just want to enter the market and profit off of it or are there some other intentions? Since they offer an exchange for business users, could it be possible that the system could be used so the government could actually tax Bitcoin by taxing the company investing in it trough the bank account?

Maybe I'm overthinking this, but when banks are involved with Bitcoin it always seems like an attempt of gaining some sort of control over it or push it to be more centralized in some way. And seeing more and more of them getting involved doesn't really comfort me.

What do you guys think, should banks even be in 'the game'?

We're going there.

It's going to be taxed soon whenever someone profits from exchanging or trading Bitcoin into fiat, this is for most countries that have just adopted it.

But AFAIK, in countries like US, you can't just skip the IRS and you're already tax as long as you've managed to have gain on it. The banks will just have to adjust on these matters.

They don't mind getting into something new as long as they'll be permitted by the government.

[Slow death]

the cryptocurrency market exists for everyone, so banks, big companies, the rich also have the right to invest in bitcoin, of course banks need to follow the laws and with that they will have to create investment mechanisms that comply with the laws governments, I see nothing wrong with banks entering the bitcoin market. I also don't see how banks would control bitcoin, and I highly doubt banks have an interest in controlling bitcoin, banks make a lot of money every year from the high interest lending services they make people

governments are forcing people and companies to have a bank account to receive salaries, save money and make kyc and with that people when they receive their salaries at the bank and look at advertising in the bank about loans, people immediately get into debt and stay for years with lives destroyed, banks have no interest in competing and controlling bitcoin, banks are guaranteed high profits every year and they have government protection. unfortunately, there is still a long way to go for all countries in the world to accept bitcoin as a payment method, until then, fiat and banks are the only option

[BIT-BENDER]

What do you guys think, should banks even be in 'the game'?

I am neutral on this since I don't mind if banks wanted to involve themselves in the Bitcoin industry.  Besides banks are business establishments too so it is not surprising if they adopt Bitcoin to take advantage of the possible profit they can get from the Bitcoin community.  Aside from that it is also a boosting factor for the Bitcoin market if banks accept it as one of their services since it will only prove that Bitcoin is legit.  This will also weaken the argument of Bitcoin being a scam or a Ponzi scheme.

I believe I am with you on this I think we should not take this as a competition between the banking sector and Crypto-currency sector. I have always said that the two can actually go exist and there are people here who has a way of working with both the crypto-currency sector and the banking sector.

But if the involvement of any banking system would actually cause an infringement in the anonymity of crypto-currency at any point then that when the toxicity is drawn. I believe anyone can get involved in crypto-currency.

[Dr.Bitcoin_Strange]

What do you guys think, should banks even be in 'the game'?

Whether they are in the game or not, or if they are in alignment with the government to tax investors, individuals still have the better choice to buy Bitcoin from other platforms apart from the bank. Although I feel if there is really advertising like you have mentioned, then it will remove the fear of doubt most people have in Bitcoin, like some new investors will come into the picture, but who knows what the results could be? Because of the way banks operate now, if you have a huge amount in your account and you want to withdraw it, your account manager will always want to know what you are using the money for (speaking of my country). So, I think that's likely a situation people will face if they decide to invest in Bitcoin through a bank. I don't buy that idea. Bitcoin was created to remove financial control from the hands of those financial elites and put us in charge, so we must not still rely on banks to make investments in Bitcoin.


Cheers 🥂, Dr.Bitcoin_Strange 👺👺

[hatshepsut93]

Since they couldn't suppress Bitcoin

They actually very easily could. Just block all transactions from crypto exchanges and monitor p2p transfers. But what would they gain from fighting Bitcoin? Bitcoin is not taking away their business. People are not paying with Bitcoin in stores. People are not using Bitcoin for loans. It's more profitable to take their share of Bitcoin pie by processing Bitcoin-related transactions.

Some overly cautious banks were banning Bitcoin-related transactions because they were afraid of dirty money. But it was just their miscalculation.

[GreatArkansas]

The majority reason I can see it, of course, is "to profits". We all know how banks work. The best example is their annual interest when you store your money in their custody is extremely low compared to other platforms like decentralized finance (defi) platforms which offers stake or deposit that earns interest, or even in some exchange offers just like that.

Another thing is banks want to become competitive especially these days which traditional banking is being outperformed with modern ones especially cryptocurrency related.

[komisariatku]

What do you guys think, should banks even be in 'the game'?

I think anyone can invest or take advantage of bitcoin. The more people or institutions using bitcoin, the better. Although their only intention is to seek a price increase. The most important thing is that the more people believe in bitcoin, the higher the price

Until whenever no one can intervene bitcoin decentralization. Even though there are those who store bitcoins in large quantities, they still cannot control and make bitcoins centralized. We can always control our own bitcoins, want to sell or keep them. No one can freeze bitcoin assets in our own wallet. This is different from banks, banks can freeze our money in accounts whenever they want.

[hd49728]

Now I wonder, do they just want to enter the market and profit off of it or are there some other intentions? Since they offer an exchange for business users, could it be possible that the system could be used so the government could actually tax Bitcoin by taxing the company investing in it trough the bank account?

Banks provide services to keep their businesses running and bringing income for their companies. As businesses, they can not survive without customers and income. With new products for Bitcoin and cryptocurrency users, banks will have a new customer population which are not small.

Will they deploy backdoors in request of governments to collect user transactions and use them for taxing? Very possible and they even do it many years, so why do they have to stop it if their customers use their bank services for transactions related with Bitcoin and cryptocurrency business deal ?

I see no reasons why they have to stop collecting customer transaction data.

What do you guys think, should banks even be in 'the game'?

The game is opened for everyone. Bitcoin network does not censor any transaction and Bitcoin protocol is not against bank systems to join.

[Don Pedro Dinero]

Maybe I'm overthinking this, but when banks are involved with Bitcoin it always seems like an attempt of gaining some sort of control over it or push it to be more centralized in some way. And seeing more and more of them getting involved doesn't really comfort me.

You're probably overthinking it but just a little bit. Banks care first and foremost about profit, and this is what has led them to offer bitcoin trading and even custody services. They have seen that there is interest and a growing market and they want to participate in the market. Secondarily, I think they have also realised that what they were worried about at the beginning, the fact that bitcoin is something they cannot control, many people buy it and hold it in centralised entities, and they have decided to be one of those entities because then it is under their control, and not that of the client.