Will banks One day accept Bitcoin deposit?

[EarnOnVictor]

One day banks will accept Bitcoin as medium of exchange and accept deposits from bitcoiners. As soon as the world powers accept it as medium of exchange.

Nothing is impossible. Let me confess that I love the footsteps of the world power you added to it. These days, things are evolving, it would get to a point that banks will start receiving Bitcoin, though in a special way because they need to know how to offset their risks in this before doing so. Even if it's through a third party, they will likely engage in it in near future.

I noticed that the world loves it when the likes of the US or EU starts it so that they can "test the waters" for them before they starts risking it as well. It's as if they can't decide on their own, but that is a topic for another day.

[atookz]

As far as I know, many banks in developed countries have started accepting Bitcoin deposits. If I'm not mistaken, I once read an article that Bank of California has been accepting Bitcoin deposits and even providing Bitcoin-backed loans for several years. In developed countries, I'm sure many banks have already started doing this. However, in developing countries, perhaps no banks have yet started accepting Bitcoin deposits. This is because developing countries are still debating the legality of Bitcoin payments. So, it all depends on each country.

[WatChe]

I think that after all the regulatory bills are passed, then everything will be possible. But I also think that there will be no point in this, because the interest on the deposit will be so low that it will be pointless. In addition, this will mean that your coins are not with you but under the control of the bank, which contradicts the philosophy of Bitcoin and completely goes under the control of banks. I do not think that this is good and that it is worth doing, I would rather control my Bitcoin myself and know that no one can block my coins or do anything else with them without my consent.

To answer the OP question, it's very important to first understand what Bitcoin is and how it differs from fiat currency used in banking system or how banking system works. The core concept of Banking system is to control and manipulate the financial system of any country while Bitcoin differs from it as it gives the financial control in the hand of owner. I have said that so many times that Banks have no objection in accepting centralised Bitcoin which they can control, their rivalry is with decentralised Bitcoin which they can't control or manipulate. 

[puloweh555]

I think that after all the regulatory bills are passed, then everything will be possible. But I also think that there will be no point in this, because the interest on the deposit will be so low that it will be pointless. In addition, this will mean that your coins are not with you but under the control of the bank, which contradicts the philosophy of Bitcoin and completely goes under the control of banks. I do not think that this is good and that it is worth doing, I would rather control my Bitcoin myself and know that no one can block my coins or do anything else with them without my consent.

To answer the OP question, it's very important to first understand what Bitcoin is and how it differs from fiat currency used in banking system or how banking system works. The core concept of Banking system is to control and manipulate the financial system of any country while Bitcoin differs from it as it gives the financial control in the hand of owner. I have said that so many times that Banks have no objection in accepting centralised Bitcoin which they can control, their rivalry is with decentralised Bitcoin which they can't control or manipulate. 

This is true. Both have different systems and concepts, and how can they possibly be combined? This is difficult. Even banking is rife with manipulation, while Bitcoin represents freedom because no one can control it, and it's impossible for banks to control Bitcoin.

Bitcoin will remain under the control of its respective owners. Although countries are beginning to realize the benefits of Bitcoin, which is leading countries around the world to want to adopt Bitcoin, that doesn't make Bitcoin controllable. Therefore, Bitcoin and banking are difficult to reconcile because they are vastly different and go hand in hand.

[hyudien]

As far as I know, many banks in developed countries have started accepting Bitcoin deposits. If I'm not mistaken, I once read an article that Bank of California has been accepting Bitcoin deposits and even providing Bitcoin-backed loans for several years. In developed countries, I'm sure many banks have already started doing this. However, in developing countries, perhaps no banks have yet started accepting Bitcoin deposits. This is because developing countries are still debating the legality of Bitcoin payments. So, it all depends on each country.

Yes quite a few banks have started accepting Bitcoin. After some research, here the list.

1. US Bancorp
2. Standard Chartered (UK).
Accepts Bitcoin custody services for institutional clients.

3. DBS Bank (Singapore).
4. In Europe, Revolut, SEBA, and Bankera.
Offer fiat-to-crypto exchanges.

There are several more, and these are just a few examples. Personally, I don't deny that the day will come when all banks in both developed and developing countries will start accepting Bitcoin as a medium of exchange or storage. However, my question is whether we will fully trust banks to store our BTC assets. Honestly, I prefer to control BTC in my own hands.

[Wakate]

This is one of the problem with banks and we need to be very confident when making transactions with them. The government uses the bank to scrutinize us and get information about us. If all banks start allowing customers to make deposits using Bitcoin,  that means there will be no privacy again and everything about us will be leaked to the government.

The way Bitcoin is operating is better for us allowing people to make transactions without their privacy information like name, location to be attached on each addresses. I know the government will do everything possible to get access to us even though transactions through the blockchain can look very hard to track individual users.

Well, that's the plan. To "deanonymize" as much Bitcoin users as possible by forcing them to go through KYC. Governments did this with centralized exchanges, and now they're trying to do it with banks. I think they will succeed. Especially when most people don't care about their privacy, or even decentralization/censorship-resistance. They're only into Bitcoin for the money.

By providing Bitcoin-based deposits, banks can benefit from market price volatility. They'll be able to make more money this way than simply investing in stocks. Pretty smart, huh? I hope that despite these efforts, Bitcoin remains decentralized. The community must stay strong no matter what. We'll see what happens in the long run.

You are not far from the truth dude, the government already has the plan to force every crypto users on providing adequate KYC in order to track all our transactions so we don't make anonymous transactions again. This is not going to be an easy adoption of cryptocurrency by the government and we need to be prepared for what is to come by the time our privacy is taken away from us.

Talking about banks adopting cryptocurrency and providing crypto services for custom, this is going to come and it's not going to take much time from now. Every processes is already in place to make us follow their regulations so we don't have the option to carry out anonymous transactions or to completely stay anonymous.

[Joy- maker]

Normally with time banks will start accepting the deposit of bitcoin and soon we will start transacting with bitcoin and other cryptocurrencies in our various banks. But another thing is our privacy will be tempered with, because if our various banks start accepting the deposit of bitcoin and other cryptocurrencies our government will want to monitor all our transactions which will take away the privacy bitcoin have offered us. But if you ask me I say that transacting with bitcoin and other cryptocurrencies in our various won't make sense since our privacy will tempered with, but I don't know what will be the opinion of others.

[Hazink]

Depending on regulation and international politics, this can eventually take place in the future. When global authority identify Bitcoin as a legal means of exchange, then banks will have to follow if they must stay relevant.  Presently some banks view it more as just asset than money. Adoption will only grow if government provide obvious rules and users continue to request it during transactions.

Banks do not just view Bitcoin as an asset, but they consider Bitcoin and its children as a revival. They believe Bitcoin is taking food off their table. If they have their way to make things go sideways for Bitcoin, they will even do it to make sure there is nothing like cryptocurrency. For international law to start pushing for Bitcoin global regulations, the majority of the countries will also have to support it before such a move can even be thought of.

[Marvell1]

I think that after all the regulatory bills are passed, then everything will be possible.

But as I said, bills or regulations related to national reserves are decided by Congress and that is not an easy thing. It's not as simple as Trump creating a strategic bitcoin reserve with just an executive order, a strategic reserve doesn't make much sense as we've seen.

But I also think that there will be no point in this, because the interest on the deposit will be so low that it will be pointless. In addition, this will mean that your coins are not with you but under the control of the bank, which contradicts the philosophy of Bitcoin and completely goes under the control of banks. I do not think that this is good and that it is worth doing, I would rather control my Bitcoin myself and know that no one can block my coins or do anything else with them without my consent.

What if interest was also paid in bitcoin?

People have invested in bitcoin through ETFs and centralized exchanges, so I think depositing bitcoin in banks to earn interest wouldn’t really be an issue either. Not many people care about bitcoin philosophy or satoshi vision anymore as you think, nowadays all people care about is profit.

[TheUltraElite]

Whether this will become a reality or not I have my doubts. Maybe in future some manner of transaction will be set up so that banks can accept bitcoin just like they accept gold.

I see what @hyudien already wrote, things are not that developed where I live so sorry for my ignorance. Maybe that is a step forward in this. But I prefer to keep custody of my coins myself.

Regulation and adoption are important to drive the banks to building such infrastructure. They have already understood the  important of bitcoin and are willing to interface with blockchain, some are using blockchain already in their services.

[shoreno]

Normally with time banks will start accepting the deposit of bitcoin and soon we will start transacting with bitcoin and other cryptocurrencies in our various banks.

I actually think that it had happened already ( at least with some banks for a while ) since bitcoin is not a new thing anymore and then we know the adoption for it ( it had spread a lot ) .

But another thing is our privacy will be tempered with, because if our various banks start accepting the deposit of bitcoin and other cryptocurrencies our government will want to monitor all our transactions which will take away the privacy bitcoin have offered us. But if you ask me I say that transacting with bitcoin and other cryptocurrencies in our various won't make sense since our privacy will tempered with, but I don't know what will be the opinion of others.

You got a point here. I'm thinking that some banks will respect our privacy and keep the transaction in private. Or are they any decentralized type of banks too? That should solved the issue. There are still people that doesn't care that much. What important for them is this makes their life even easier.

[Ziskinberg]

One day banks will accept Bitcoin as medium of exchange and accept deposits from bitcoiners. As soon as the world powers accept it as medium of exchange.

Once banks will start to adopt bitcoin, I’m starting to see the possibility also that bitcoin will turn into semi-centralized in the near future. This will be a gained advantage of the banks and government, while it could be a loss for bitcoin and for us bitcoin owners.

This isn’t about anonymity, but allowing these centralized entities to get hold of our asset, of our bitcoin, Satoshi will certainly get disappointed about this. That’s why as much as possible we need to decline this kind of trap, otherwise we won’t be having full control with our bitcoin anymore the moment we bite their trap and start trusting our bitcoin to these centralized banks.

[Swordsoffreedom]

~snip~
Are you referring to the BIS decision? However, that will depend on the decision of each country's central bank. So far, leading central banks like the Fed, ECB, BOJ or BoE are still skeptical about bitcoin, they do not really support this idea. Just like the ECB has been outspoken in stating that they have no intention and do not support the idea of ​​adding bitcoin to their bitcoin reserves.

It can be said that no central bank has supported this idea yet, so I don't think it will happen in the next decade. It will probably take longer.

Yes, the BIS one.

That's correct, every central bank will decide by themselves, but at least now they are able to do so.

Before, even if a central bank wanted to, they were not able.

So, it's definitely a step in the right direction in my mind...

You are wrong, BIS is just an organization that brings together central banks but they do not have the authority to order and legally bind the decisions of individual central banks. The decision of the central bank is considered the internal decision of each country, no one has the right to interfere. So even if BIS doesn't allow it and if central banks like Fed, ECB want to add bitcoin to their national reserves, they have no right to intervene.

[fikrett]

~snip~
Are you referring to the BIS decision? However, that will depend on the decision of each country's central bank. So far, leading central banks like the Fed, ECB, BOJ or BoE are still skeptical about bitcoin, they do not really support this idea. Just like the ECB has been outspoken in stating that they have no intention and do not support the idea of ​​adding bitcoin to their bitcoin reserves.

It can be said that no central bank has supported this idea yet, so I don't think it will happen in the next decade. It will probably take longer.

Yes, the BIS one.

That's correct, every central bank will decide by themselves, but at least now they are able to do so.

Before, even if a central bank wanted to, they were not able.

So, it's definitely a step in the right direction in my mind...

You are wrong, BIS is just an organization that brings together central banks but they do not have the authority to order and legally bind the decisions of individual central banks. The decision of the central bank is considered the internal decision of each country, no one has the right to interfere. So even if BIS doesn't allow it and if central banks like Fed, ECB want to add bitcoin to their national reserves, they have no right to intervene.

Yep, I read about it - it's like the UN - you can make nitpicks at any action of anyone all you want, but the final decision remains on you and your country's shoulders.

[Jubilee58]

One day banks will accept Bitcoin as medium of exchange and accept deposits from bitcoiners. As soon as the world powers accept it as medium of exchange.

Bitcoin is a decentralized cryptocurrency, which  means everyone is in control of his or her own bitcoin and the transaction of bitcoin is through P2P and not through third party.

Bitcoin was created to eliminate third party or intermediary like bank. So if you are still making use of bank to make your transaction, it means the main purpose of creating bitcoin has been defeated because third party is now involved.

[ChiBitCTy]

One day banks will accept Bitcoin as medium of exchange and accept deposits from bitcoiners. As soon as the world powers accept it as medium of exchange.

I have no doubt that this is where the future of bitcoin is heading.  I was thinking about this the other night , about how far we've come as a community/ bitcoin as an asset/digital currency etc. 

I personally think that for bitcoin to truly succeed is to also be know as a currency and not just some sort of speculative asset, or hedge asset or some sort of replacement for currency as a whole, etc. 

I mean look how fat things have progressed when it comes to thinks like BlackRock whos the worlds number one fund company in terms of assets.  Larry Fink, the BlackRock CEO use to be a pundit against bitcoin and in his most recent yearly newsletter to investors now see bitcoin as a a potential to take over as the worlds reserve currency.  So yes, it is coming imo. 
 

[Abiky]

You are not far from the truth dude, the government already has the plan to force every crypto users on providing adequate KYC in order to track all our transactions so we don't make anonymous transactions again. This is not going to be an easy adoption of cryptocurrency by the government and we need to be prepared for what is to come by the time our privacy is taken away from us.

Talking about banks adopting cryptocurrency and providing crypto services for custom, this is going to come and it's not going to take much time from now. Every processes is already in place to make us follow their regulations so we don't have the option to carry out anonymous transactions or to completely stay anonymous.

Well, Bitcoin transactions aren't anonymous. Instead, they are pseudonymous. It's possible to link addresses to your identity based on blockchain activity. All part of Bitcoin's transparent design. KYC will only make matters worse, as it will eliminate the little privacy Bitcoin has left. Governments will only succeed in their plan if they manage to hold or control most of the BTC in circulation. Spot ETFs, Strategic Crypto Reserves, and CEXs are all attempts to centralize and make Bitcoin fully KYC-compliant.

Banks are getting in the game, not only for profit, but to help the government keep a trail of who deposits/withdrawals Bitcoin. As long as most of the Bitcoin is held in self-custodial wallets, we should have nothing to worry about.

[Razmirraz]

One day banks will accept Bitcoin as medium of exchange and accept deposits from bitcoiners. As soon as the world powers accept it as medium of exchange.

It depends on the rules and policies set out in a country's laws, but isn't it getting more complicated, besides you can exchange Bitcoin through a p2p exchange which is more practical and economical. There will be additional fees when you exchange Bitcoin through a third party (Bank) and the process also takes a long time, not to mention you have to queue for your turn. I didn't think that far ahead, especially since Satoshi created Bitcoin to free its users from third-party systems that always complicate society.

[HelliumZ]

One day banks will accept Bitcoin as medium of exchange and accept deposits from bitcoiners. As soon as the world powers accept it as medium of exchange.

It will depend on whether Bitcoin is legal or illegal in a country. When Bitcoin becomes legal in a country, the government of that country will completely change the country's policies and transaction methods, then the bank will automatically allow Bitcoin to be deposited. Since so far, no country except El Salvador has declared Bitcoin as legal tender, there is no rule for depositing it in the bank. However, I do not know how advanced other countries are, but in my country, there has been no positive agreement from the government on the subject of Bitcoin so far and it is not possible to say for sure whether it will come in the future.

[Out of mind]

One day banks will accept Bitcoin as medium of exchange and accept deposits from bitcoiners. As soon as the world powers accept it as medium of exchange.

It is possible but it will not happen soon rather it needs time, it is possible in the countries where Bitcoin has been given legal tender, but currently most countries have not accepted Bitcoin as legal tender. Although most countries have said it is impossible because the price of Bitcoin is not stable but it is volatile due to which people have not planned to keep deposits with a bank yet. But it is possible only in the countries where Bitcoin is approved and if the banks promise to keep Bitcoin deposits. Moreover, Bitcoin will keep deposits with banks This is going to happen in the future if more people use Bitcoin and different countries recognize Bitcoin in their countries. Moreover, since Bitcoin is a powerful network system and its technology is very advanced, it will soon be legally approved in more countries. But we cannot confirm this yet because it will depend on the world power, whether Bitcoin will keep deposits with banks in the future.