Bitcoin: Banks called it fraud, now they want a piece of the pie

[Solokan]

Yes, it's true that many people used to call BTC a scam, but fortunately, many now realize that BTC is a valuable asset. Even banks want to adopt it. This is indeed exciting, and this news certainly makes me more enthusiastic about investing in BTC.

It's true that with banks adopting BTC, they certainly want to make a profit, but we must be good BTC investors. In my opinion, we will still be able to enjoy freedom when investing in BTC, even though many banks are adopting BTC. The most important thing is whether we can hold BTC for the long term. So, of course, BTC is still BTC, and it's decentralized.

[BitBakerr1]

I know that one day banks are going to adopt bitcoin and make people start purchasing bitcoin through them and also send bitcoin through them, I am not even surprise that banks are now coming to adopt bitcoin, they do not have any other choice because they have seen the impact that bitcoin has made and the number of people that are investing in bitcoin.
People are running bitcoin transactions every day, and Banks have seen that if they adopt bitcoin, they can make huge amount of money from people.

However, I don’t think anyone is going to follow any policy that the bank will bring, anyone who is using bitcoin don’t like financial control so they will not get customers that will follow their policies.

[Nothingtodo]

Actually the main profit of banks comes from giving loans to people. Maybe they want to make a profit by giving loans in Bitcoin as well Or maybe they want to store Bitcoin as digital gold.

Banks using bitcoin is actually good for bitcoin although it is definitely bad for those users who would want to store bitcoin in banks to earn interest because of these there will be no actual value in Bitcoin anymore.

Yes, it seems that after the discovery of Bitcoin, the banks were the first to oppose it and that opposition was permanent for a long time, but now, seeing the popularity and multifaceted impact of Bitcoin, the banks are now showing flexibility towards Bitcoin. Although it is undoubtedly good for Bitcoin and at the same time, if the banks accept Bitcoin as a medium of transaction, it is also good for the banks. Now the main thing is that many popular and expensive banks in the world are accepting Bitcoin as collateral for loans.

[Smack That Ace]

I know that one day banks are going to adopt bitcoin and make people start purchasing bitcoin through them and also send bitcoin through them, I am not even surprise that banks are now coming to adopt bitcoin, they do not have any other choice because they have seen the impact that bitcoin has made and the number of people that are investing in bitcoin.
People are running bitcoin transactions every day, and Banks have seen that if they adopt bitcoin, they can make huge amount of money from people.

However, I don’t think anyone is going to follow any policy that the bank will bring, anyone who is using bitcoin don’t like financial control so they will not get customers that will follow their policies.

Yeah, not surprised either. Banks are businesses at the end of the day, and profit is the bottom line for them. Once they smell money, they'll jump in.

Sure, some people won't want to transact in BTC through banks because they value financial sovereignty. But we've all seen how strong demand for BTC ETFs is ,  so I'm not surprised to see banks integrating BTC either.  I reckon plenty of investors would gladly buy  and park their coins with a bank instead of dealing with wallets and private keys  themselves .

Sad truth is , not everyone buying  Bitcoin wants to break away from the traditional financial  system .

[Marvelockg]

Although adoption is good but banks and institutions adopting bitcoin is like making bitcoin follow their strict policies as well, the system is fine but its policies are making bitcoin users not enjoy the freedom.

the main goal behind the establishment of any  bank is mainly for the sake of making profit.  every other thing including the policy they adopt and what they believe in or attack is all about what they see as capable of yielding profit vs what they see as a threat to their continuous operation.

Banks have not been too anti bitcoin as much as the government are. their stand is mainly a function of the fact that they are answerable to the government and so, they just have to adopt only policies that are in line with what the government approves.  some of them might even be secrete investors of bitcoin.

[BlackBoss_]

Banks never wanted to fight against Bitcoin in the first place, it was the regulation from the government that restricted them to alpha they could perform with anything that has to do with bitcoin network, now the same government as seeing more opportunity and having a wider scope on how relevant Bitcoin network is, they are creating a more suitable and affordable framework that could permit everyone to independently adopt bitcoin at their own risk, but not coming in full support to encourage others to invest in it, I think things are getting more better than before now and we still look forward to more better days ahead.

Fight or don't fight against Bitcoin, it depends on how banks at different times see Bitcoin as a competitor, a threat against their bank system and can potentially get their users away. If they see Bitcoin can possibly bring more people to their banks, they will have products for Bitcoin users and it's what we witnessed in recent years. Especially after Bitcoin Spot ETF approvals in the USA in 2024, banks are no longer against Bitcoin. Their banks can become more favorite by Bitcoin users if they provide more products for Bitcoin users.

It's mutual business relationship, and banks will take advantage of it for their business revenue and benefit in the long term. Bitcoin has been far from its start in 2009, and has been no longer to weak to be stopped, while it has become attractive enough to be supported by banks.

[General_Bitcoin]

Banks never wanted to fight against Bitcoin in the first place, it was the regulation from the government that restricted them to alpha they could perform with anything that has to do with bitcoin network, now the same government as seeing more opportunity and having a wider scope on how relevant Bitcoin network is, they are creating a more suitable and affordable framework that could permit everyone to independently adopt bitcoin at their own risk, but not coming in full support to encourage others to invest in it, I think things are getting more better than before now and we still look forward to more better days ahead.

Fight or don't fight against Bitcoin, it depends on how banks at different times see Bitcoin as a competitor, a threat against their bank system and can potentially get their users away. If they see Bitcoin can possibly bring more people to their banks, they will have products for Bitcoin users and it's what we witnessed in recent years. Especially after Bitcoin Spot ETF approvals in the USA in 2024, banks are no longer against Bitcoin. Their banks can become more favorite by Bitcoin users if they provide more products for Bitcoin users.

It's mutual business relationship, and banks will take advantage of it for their business revenue and benefit in the long term. Bitcoin has been far from its start in 2009, and has been no longer to weak to be stopped, while it has become attractive enough to be supported by banks.

This may say more about banks not wanting to be left behind and ignoring a potential business risk than it does about them truly believing in Bitcoin. Offering Bitcoin services could enable banks to continue operating within their current system and still be able to offer this service to customers.

Perhaps adoption alone shouldn’t be the metric that we focus on, we should also ask ourselves are people being given more control over their own money or are they just being offered yet another product to invest in that is controlled by a central institution?

[savetheFORUM]

Although adoption is good but banks and institutions adopting bitcoin is like making bitcoin follow their strict policies as well, the system is fine but its policies are making bitcoin users not enjoy the freedom.

the main goal behind the establishment of any  bank is mainly for the sake of making profit.  every other thing including the policy they adopt and what they believe in or attack is all about what they see as capable of yielding profit vs what they see as a threat to their continuous operation.

Banks have not been too anti bitcoin as much as the government are. their stand is mainly a function of the fact that they are answerable to the government and so, they just have to adopt only policies that are in line with what the government approves.  some of them might even be secrete investors of bitcoin.

I agree, I do not think that banks have been "that" much anti-Bitcoin. But you also need to realise financial companies and banks are not the same and sometimes people mistake them for each other. Like, sure, Bank of America is a bank, but BlackRock is not; JP Morgan is not.

So who was against bitcoin? Those investment companies- why? Because if people learn about bitcoin themselves, and love it, and invest with that, then they are going to end up learning a way for themselves to invest, and not need those investment companies. And then, if we all stopped investing in stocks and bonds and all that, but invested in bitcoin ourselves, what would happen? Those companies would go bankrupt. Hence, why they hated bitcoin. After the whole ETF thing started, they all started to like it a lot more.

[alastantiger]

Yes, it seems that after the discovery of Bitcoin, the banks were the first to oppose it and that opposition was permanent for a long time, but now, seeing the popularity and multifaceted impact of Bitcoin, the banks are now showing flexibility towards Bitcoin. Although it is undoubtedly good for Bitcoin and at the same time, if the banks accept Bitcoin as a medium of transaction, it is also good for the banks. Now the main thing is that many popular and expensive banks in the world are accepting Bitcoin as collateral for loans.

The banks opposing Bitcoin Is an expected move from them because they are just seeing a new currency coming to takeover what they were controlling already, it will be very hard not to fight it and that is what they did.  Now that they are coming back to embrace Bitcoin, it shows that they have learnt their lessons and are ready to accept tBitcoin since they could not defeat Bitcoin.

Bit I do not think it is all the banks in the world or not even the top ones are agreeing to do this but with one bank starting it then it might get the attentions of other banks and this can be the reason for all the banks to be accepting Bitcoin as a medium of transactions. If this can happen then Bitcoin will become profitable to own because it will be used as. an official currency for more people to get to know and buy it.

[HelliumZ]

Banks basically make profits by distributing loans to customers. So if they accept Bitcoin as collateral as a condition for distributing loans to customers, then the bank will also make profits from Bitcoin. Now the main target is to get people to accept Bitcoin as collateral for taking loans and if they can do this, the bank will undoubtedly get double the profit. This is mainly why banks are showing more interest in Bitcoin at the present time. A popular bank in Switzerland has accepted Bitcoin as collateral for loans a few days ago and there are some other banks that are accepting Bitcoin as collateral. That is, as time goes by, banks are showing more interest in Bitcoin.

[Compromise me]

Banks never wanted to fight against Bitcoin in the first place, it was the regulation from the government that restricted them to alpha they could perform with anything that has to do with bitcoin network, now the same government as seeing more opportunity and having a wider scope on how relevant Bitcoin network is, they are creating a more suitable and affordable framework that could permit everyone to independently adopt bitcoin at their own risk, but not coming in full support to encourage others to invest in it, I think things are getting more better than before now and we still look forward to more better days ahead.

Banks mean business they usually need their profit, even if it's surely having some impact on them, but they are still looking to stay in touch with Bitcoin because this will increase their transparency and customers, but financial regulations have never been favorable, which is the biggest problem, but now governments and big institutes are well aware of the authenticity of Bitcoin, so they are investing and encouraging use of Bitcoin. More favorable rules and policies are going to have better relationships, which could improve Bitcoin stability and its potential. It's going to take time, but things are already on the way to having better results and good profit, which is always the main agenda of every investor.

[MinoRaiola]

Although adoption is good but banks and institutions adopting bitcoin is like making bitcoin follow their strict policies as well, the system is fine but its policies are making bitcoin users not enjoy the freedom.

I think that is the idea behind doing business.

now they want a piece of the pie

I think the banks have realized that Bitcoin cant be stopped. They been trying this for over 10 years, and Bitcoin has just kept growing. It is grown so much that there is now a lot of money in the network. And if they want to control it, then they offer a service. This service isnt necessary for people, but hopefully it will help them learn about Bitcoin and understand the possibilities it offers. A bank will establish rules and wont grant full access to the coins. That means, ultimately, you should manage your own coins and not trust the bank.

[Dickiy]

Yes, it seems that after the discovery of Bitcoin, the banks were the first to oppose it and that opposition was permanent for a long time, but now, seeing the popularity and multifaceted impact of Bitcoin, the banks are now showing flexibility towards Bitcoin. Although it is undoubtedly good for Bitcoin and at the same time, if the banks accept Bitcoin as a medium of transaction, it is also good for the banks. Now the main thing is that many popular and expensive banks in the world are accepting Bitcoin as collateral for loans.

The banks opposing Bitcoin Is an expected move from them because they are just seeing a new currency coming to takeover what they were controlling already, it will be very hard not to fight it and that is what they did.  Now that they are coming back to embrace Bitcoin, it shows that they have learnt their lessons and are ready to accept tBitcoin since they could not defeat Bitcoin.

Bit I do not think it is all the banks in the world or not even the top ones are agreeing to do this but with one bank starting it then it might get the attentions of other banks and this can be the reason for all the banks to be accepting Bitcoin as a medium of transactions. If this can happen then Bitcoin will become profitable to own because it will be used as. an official currency for more people to get to know and buy it.

The traditional finance of any country initially opposed Bitcoin because it was considered a competitor in the financial industry. People are used to relying on the bank at first and obeying its policies, but when there is an alternative that gives freedom, it does not immediately erode trust in the bank. Over time, the rejection of banks could not continue they had to take the road by adapting rather than having to lose their relevance.

[SilverCryptoBullet]

The traditional finance of any country initially opposed Bitcoin because it was considered a competitor in the financial industry. People are used to relying on the bank at first and obeying its policies, but when there is an alternative that gives freedom, it does not immediately erode trust in the bank. Over time, the rejection of banks could not continue they had to take the road by adapting rather than having to lose their relevance.

People relied on the bank system which is very old and massively available in all nations while before appearance of Bitcoin, there was no decentralized solution that can be used as a Peer to Peer payment system. Bitcoin was launched by Satoshi Nakamoto and quickly received a lot of support and adoption from communities globally. Since then, with an alternative like Bitcoin that is powerfully decentralized, people have been migrating from bank system to Bitcoin blockchain.

Bitcoin is amazing because it provides a free access, permissionless experience for people who used to live without access to bank system. With Bitcoin blockchain, you only need to have bitcoin and use the blockchain quite easily. No censorship, no freeze from any centralized entity if your bitcoins are in non custodial wallets.

[Zigabel]

Although adoption is good but banks and institutions adopting bitcoin is like making bitcoin follow their strict policies as well, the system is fine but its policies are making bitcoin users not enjoy the freedom.

Even the Banks has seen the sustainability with the value system around Bitcoin and it is such that cannot be neglected or over looked, the banks we know are in for profits and also wants to make use of every opportunity they see that can get them to secure as much profits as they can at a time. Bitcoin they know and have seen has now been considered a very vital and prominent asset in the financial space over a period of time and so they can no longer pay less attention to it but to explore it and see how well they too can utilize every of the opportunities they can find around it.

The adoption of Bitcoin by Banks and institutions will only give them slight control around their corridors of usage, but they cannot fully control how it will be used generally out there, and how it's price and value system will be. You can go to the bank and they may want to limit how much of it you can use in the bank but outside of the bank they can't limit or control how much of Bitcoin you can own and spend at a time, so they still don't have as much control.

[Taskford]

The banks opposing Bitcoin Is an expected move from them because they are just seeing a new currency coming to takeover what they were controlling already, it will be very hard not to fight it and that is what they did.  Now that they are coming back to embrace Bitcoin, it shows that they have learnt their lessons and are ready to accept tBitcoin since they could not defeat Bitcoin.

Bit I do not think it is all the banks in the world or not even the top ones are agreeing to do this but with one bank starting it then it might get the attentions of other banks and this can be the reason for all the banks to be accepting Bitcoin as a medium of transactions. If this can happen then Bitcoin will become profitable to own because it will be used as. an official currency for more people to get to know and buy it.

The traditional finance of any country initially opposed Bitcoin because it was considered a competitor in the financial industry. People are used to relying on the bank at first and obeying its policies, but when there is an alternative that gives freedom, it does not immediately erode trust in the bank. Over time, the rejection of banks could not continue they had to take the road by adapting rather than having to lose their relevance.

They opposed, because they don't understand it at first. Then those institution afraid that Bitcoin might became a huge difference maker and their institution might get affected with their existence.

But I guess they already saw that Bitcoin will not cause any harm to them. So instead of hating it, now they adapt on the trend and here they are also encouraging people to deal with their Bitcoins in their institution.

Well the current situation indicates good situation, this also means that more adoption will come on Bitcoin.

[SeriouslyGiveaway]

They opposed, because they don't understand it at first.

They possibly did not understand about Bitcoin but it means they worried about possible effects from Bitcoin success on their bank business. It's the biggest fear banks had about Bitcoin years ago while Bitcoin possibility of success or failure, if does not have any effect on banks would have not made banks worrying about Bitcoin.

Then those institution afraid that Bitcoin might became a huge difference maker and their institution might get affected with their existence.

Firstly they were fearful about that risk, secondly they cared about safety of their business according to existing laws and regulations on bank system.

But I guess they already saw that Bitcoin will not cause any harm to them. So instead of hating it, now they adapt on the trend and here they are also encouraging people to deal with their Bitcoins in their institution.

Well the current situation indicates good situation, this also means that more adoption will come on Bitcoin.

By witnessing the success of Bitcoin, better legal framework on Bitcoin, and no longer illegal status of Bitcoin, banks are more welcome Bitcoin related products and Bitcoin users to their bank services. Bitcoin and bank system have already reached to a turning point of co existence and mutually beneficial with each other.

[Proty]

There are many institutions that saw bitcoin as a scam in the past probably because they don't understand what bitcoin is , especially for banking institutions that may not like bitcoin because they have no control over it like traditional currency. However, people's criticism about bitcoin doesn't change or affect bitcoin . They have seen the past performance of bitcoin and then decided to change their stand about bitcoin. However, the fact that bank is now buying bitcoin doesn't mean that bitcoin isn't decentralised in nature. Bank doesn't have control over bitcoin network.

[Ayers]

Banks basically make profits by distributing loans to customers. So if they accept Bitcoin as collateral as a condition for distributing loans to customers, then the bank will also make profits from Bitcoin. Now the main target is to get people to accept Bitcoin as collateral for taking loans and if they can do this, the bank will undoubtedly get double the profit. This is mainly why banks are showing more interest in Bitcoin at the present time. A popular bank in Switzerland has accepted Bitcoin as collateral for loans a few days ago and there are some other banks that are accepting Bitcoin as collateral. That is, as time goes by, banks are showing more interest in Bitcoin.

that's the part a lot of people do not get. bank make money from all sorts of service, but lending is one of their core businesses. they do not just rely on payment processing fee. so when they accept btc as collateral and offer loans against it. it's because they see a lucrative business opportunity, not because they are afraid of bitcoin, as some people seem to think.

we might not like it because it goes against btc's whole philosophy of cutting out 3rd parties. but from a business standpoint, it makes sense. investor can borrow against their Btc without having to sell it, while bank gain new customer and earn interest  on those  loans. both sides stand to  benefit.

[osasshem]

Now this is getting interesting. with this development it looks like banks are adopting bitcoin.

From the provided link on OP, it is not stated that banks wants to adopt Bitcoin, but Blockstream wants to create a consulting platform in Lugano Switzerland, where they want to set up a hub which will be used as a central infrastructure with services spanning technical strategy, system architecture etc.

“Our extensive experience in Bitcoin cryptography, protocol development and engineering gives Blockstream the technical expertise to address the complexities of integrating Bitcoin into traditional financial infrastructure.”

Bitcoin was created to make transactions without relying on banks, at early stages banks even called bitcoin a fraud, and we always advocate that we don't need banks to do transactions as we have blockchain to make them transparent, but with this news looks like banks cannot hold their horses but want to adopt bitcoin as probably they see some potential for huge profit why can't they just leave bitcoin alone.?

Although adoption is good but banks and institutions adopting bitcoin is like making bitcoin follow their strict policies as well, the system is fine but its policies are making bitcoin users not enjoy the freedom.

If not for the strict policies around the native financial/banking systems, it will help increase the wide adoption of the Bitcoin use, while respecting the decentralized nature of Bitcoin. Well for the long run, we may end up on same direction, yet, where those who prefer to be in-charge of their holdings can still do their thing, while banks will hold for those who are scared of the risk of losing their possession.