Bank Leumi Integrates Bitcoin Transactions with Customers

[sunsilk]

But my question is, government support for the use of Bitcoin be at the expense of our privacy, because banks have always used customers' key information? Is this not serving an added advantage to the financial institution or government rather than the benefits it renders to every bitcoin users that will be operating there bitcoin transaction under the bank?.

There is no difference with the exchanges where everyone have submitted their IDs for kyc.

This is where it is going, the banks and the governments will simply adopt bitcoin. But at our expense, they're going to ask for verification.

One defense they'll about it is that to avoid money laundering and that's their concern for doing so. It's nice to experience it but will people should use it?

They are free to use it but I don't think that those who are concerned with their security and privacy should use it.

[Myleschetty]

Italy has the first bank to accept directly bitcoin and integrate the payments.
Despite the harsh legislature they are still in operations! and I would say this could become a nice way to use directly btc.
It couldn't be trusted blindly.
There is always the risk once receing funds and with new MICAR DAC8 rules it was pretty evident there are many new regulatories hurdles...

I don't know what you said about Italy's first bank's position on Bitcoin as a payment method until now, but I'm not shocked because the nation welcomes foreigners and is frequently ranked among the best in the world in a number of other areas, including food culture, fashion, history, architecture, and cuisine. The Bank Leumi BTC integration for customers is still a victory for the cryptocurrency industry, so we shouldn't view it as a struggle for supremacy.

[yhiaali3]

This news may be welcome to bankers who want to try cryptocurrencies through their bank accounts. These people do not care about their privacy, do not care whether their transactions are under the bank’s control or not, and do not care about decentralization and self-custody.

True Bitcoin enthusiasts who appreciate the meaning of decentralization and self-preservation will never care about this partnership with a central bank, whether in Israel or elsewhere, and will not keep their valuable Bitcoin in a central wallet belonging to a central bank.

[Royal Cap]

I have a question here, the convenience of buying and selling Bitcoin through a bank will certainly be easier for new users, but we have been able to do this for a long time with centralized exchanges using P2P trading. In P2P buyers and sellers can trade directly and the platform provides security for the transaction with escrow.  So for me the real benefit of Leumi's initiative is not to make it easier to buy Bitcoin, but to connect crypto more directly with the banking system. But the more important question is how much privacy there will be in return. In both CEX or banks, the issue of KYC and transaction records must be kept in mind. Personally, I think this is positive for adoption, but the importance of your own wallet in terms of privacy and self custody still remains.

[macson]

It's only a matter of time before more banks integrate their services with Bitcoin investments. After all, cryptocurrencies can become a new business for these banks. They can enjoy additional revenue by simply providing trading or custody services, without needing to be directly involved in crypto investments.

For users who simply want to gain exposure to Bitcoin prices but don't want the hassle, this might be helpful. For banks, however, it's just another money-making opportunity.

[Alphakilo]

It's only a matter of time before more banks integrate their services with Bitcoin investments. After all, cryptocurrencies can become a new business for these banks. They can enjoy additional revenue by simply providing trading or custody services, without needing to be directly involved in crypto investments.

For users who simply want to gain exposure to Bitcoin prices but don't want the hassle, this might be helpful. For banks, however, it's just another money-making opportunity.

Banks want more money, the government wants more control and since the banks are controlled by the government, that means the government wins.
This is simply merging cryptocurrency economic system mechanics to fiat economic system, making what is decentralized become centralized and open without privacy.
It may seem though that there would be no need for the fear of losing seed phrases because the banks have access to your information and can easily retrieve it anytime you want.

This idea of integration of Bitcoin into banks defeats the core purpose of soverignty and self custody and may not be a choice for true believers who believe in decentralization, self custody and privacy.

[tabas]

This news may be welcome to bankers who want to try cryptocurrencies through their bank accounts. These people do not care about their privacy, do not care whether their transactions are under the bank’s control or not, and do not care about decentralization and self-custody.

True Bitcoin enthusiasts who appreciate the meaning of decentralization and self-preservation will never care about this partnership with a central bank, whether in Israel or elsewhere, and will not keep their valuable Bitcoin in a central wallet belonging to a central bank.

They entrust the banks more than themselves and that's why it's music to their ears when they've read this news. It's one of the many that will be followed by the other banks. Before, it was "Be your own bank" then this time, "we are your bank". Sounds realistic and it's going there, expect that there will be more partnership from these banks and other third parties that are going to help them make people closer to bitcoin. And their tagline might be it, the friendly bank helps them invest to bitcoin even if they can do it on their own.

[X-ray]

With the bank-based Bitcoin system, we are once again relying on intermediaries instead of financial sovereignty.

I would call this a positive on-ramp for Bitcoin adoption. But it won't help those who are concerned about privacy. Maybe they can make Bitcoin access easier so many people can use banks for convenience. But they will be deprived of the key benefit of self-custody.

I don't think an on-ramp that doesn't allow for withdrawal is a net positive to Bitcoin.

Sure, it attracts liquidity to Bitcoin market potentially helping Bitcoin to get an even higher price with higher volume but the coin basically staying on the Bank's custodial infrastructure and will never get out.

I wish they could at least allow for withdrawal and let people manage their own money.

[Popkon6]

I think it will not be confidential at all, because we will have to transact through bank apps, which will have a close record of the bank officials. Since the bank stores the money of different people and keeps their documents properly preserved, they have been carrying the identity of each person for a long time.
Therefore, if they transact and buy and sell Bitcoin, they will have evidence, so privacy will not be preserved. It is better to buy, sell and transact Bitcoin in a place where privacy is preserved, but this will attract many investors, they may be able to transact through a trusted bank platform.

[As-Soon-As]

But my question is, government support for the use of Bitcoin be at the expense of our privacy, because banks have always used customers' key information?

It is only one person's property, so the identities of different people are open and recorded in the bank. It is not advisable to transact Bitcoin in such a place. This is a completely different matter, those who will buy, sell and hold Bitcoin will definitely prefer to transact privately. Since it does not protect privacy, I do not think it is reasonable to transact Bitcoin in bank apps,

Is this not serving an added advantage to the financial institution or government rather than the benefits it renders to every bitcoin users that will be operating there bitcoin transaction under the bank?.

The main purpose of the bank here will be to buy, sell and store Bitcoin through their apps. My point is that if we can buy and sell Bitcoin, why store it with a third party? It gives them additional benefits but it may seem like the loss is greater than providing this additional benefit. Because in the current situation, it is best to keep Bitcoin with yourself, but I think it is most important to keep Bitcoin with yourself. Because a third party will not hesitate to reveal the secret about my Bitcoin holding.

[purple_sparkles]

But my question is, government support for the use of Bitcoin be at the expense of our privacy, because banks have always used customers' key information?

It is only one person's property, so the identities of different people are open and recorded in the bank. It is not advisable to transact Bitcoin in such a place. This is a completely different matter, those who will buy, sell and hold Bitcoin will definitely prefer to transact privately. Since it does not protect privacy, I do not think it is reasonable to transact Bitcoin in bank apps,

Is this not serving an added advantage to the financial institution or government rather than the benefits it renders to every bitcoin users that will be operating there bitcoin transaction under the bank?.

The main purpose of the bank here will be to buy, sell and store Bitcoin through their apps. My point is that if we can buy and sell Bitcoin, why store it with a third party? It gives them additional benefits but it may seem like the loss is greater than providing this additional benefit. Because in the current situation, it is best to keep Bitcoin with yourself, but I think it is most important to keep Bitcoin with yourself. Because a third party will not hesitate to reveal the secret about my Bitcoin holding.

As soon as we turn to a bank and use its service to buy or sell bitcoin, we essentially say goodbye to our privacy. However, if privacy isn’t a priority for someone and the service for buying and selling bitcoin is convenient, there’s nothing wrong with using it. For many people, a banking app is more familiar and easier to understand than a crypto exchange app. So, essentially, it’s simply a service, whether to use it or not is a personal choice.