banks

[Valence]

/

[newIndia]

Then other banks will start dissociating with that bank supporting bitcoin. Ultimately more vulnerability, same effect.

[rax]

I'll try to keep it short.

All banks rob both their customers and the holders of currency in which they deal.
Bitcoins are designed to be easily* stored** on a individual basis without the need of a bank.
So no fucking Bitcoin banks.


* Admittedly it's a little bit involved atm.
** The only thing you store is your wallet's private key, in the same way that you keep you car keys at hand and the actual car can be parked on the street.

[sorryforthat]

I'll try to keep it short.

All banks rob both their customers and the holders of currency in which they deal.
Bitcoins are designed to be easily* stored** on a individual basis without the need of a bank.
So no fucking Bitcoin banks.


* Admittedly it's a little bit involved atm.
** The only thing you store in your computer is your wallet's private key, in the same way that you keep you car keys at hand and the actual car can be parked on the street.

Major exchanges have done the same. How does it differ when its become the norm?

I understand we can maintain it ourselves but there comes a point where one needs to unload and the only other means is risking this on exchange which may end up having negative circumstances.

[rax]

Major exchanges have done the same. How does it differ when its become the norm?

I understand we can maintain it ourselves but there comes a point where one needs to unload and the only other means is risking this on exchange which may end up having negative circumstances.

Yes, its true. Exchanges are indeed like banks (btw the same goes for web wallets). And you need to trust them to a certain extent to buy and sell BTC. Me myself have some $40 trapped in Bitstamp as we speak.

The point is that you don't need to trust them with *all* your BTC *all* the time. It seems that most people do but I hope they'll eventually learn not to do it, and by then they'll not be looking for a "BTC bank".

[Bizmark13]

I made a thread about Bitcoin banks here and I think most people in the Bitcoin community think it's a bad idea. Personally, I think it's a necessary evil if Bitcoin has any hopes of ever becoming mainstream.

However, I think the OP here is talking about a traditional bank that deals mainly in fiat and is friendly towards those who trade cryptos. I see no problem with such a bank. I have no idea how much it would cost to form a bank and I'm not sure how successful it would be since crypto traders are a very small niche to cater towards.

Here in New Zealand, we have banks like ANZ and BNZ which are very unfriendly towards cryptos. If they catch you dealing with cryptos then they will suspend your account. But there are also other banks out like Kiwibank (ironically, a government-owned bank), Westpac, and ASB which aren't nearly as hostile. Even so, it is recommended to avoid using references to Bitcoin when dealing with large amounts of BTC (e.g. while trading on LocalBitcoins).

[Flashman]

Then other banks will start dissociating with that bank supporting bitcoin. Ultimately more vulnerability, same effect.

Pretty much.

The value in having a bank is it's ability to interoperate with other banks, to accept wire transfers and ETFs etc, to cash drafts and cashiers checks. If other banks are just going to see it's bitcoin associations and not play nice with it, then not really much point.

[chek2fire]

There is no need for a decentralized coin to have a bank! Why people even within bitcoin try to create new banks like MTGox, bitstamp?

[HeroCat]

Most probably some banks will implement BTC in payment system in nearest years, own bank can be as lending capital company may be 

[caga]

Just wondering what would be involved in founding a new bank that's friendly towards the interests of bitcoiners. Of course you'd still be dealing with the problems of having to trust a bank, but at least it would be better than trusting the big banks that are always closing bitcoin-related accounts. I'm just talking about a bank that would be willing to open business accounts for bitcoin traders, and where you wouldn't have to worry about telling them you're using your account for buying and/or selling cryptos.

How much capital would it take to start a small bank or credit union along these lines? Which country would it make sense to try it in, if any?

Having a bitcoin bank would be a risk , and it will be against the decentralized nature of bitcoin.

[Flashman]

I was observing to a friend, that maybe nobody is going to throw a huge lot of resources at "the fiat exchange problem", because they expect it to be somewhat temporary. Either because they think USD is going to hell in a handbasket, "real soon now", or because it suddenly hits the banks what a superior form of money bitcoin is, and they will lust after it, in either case, barriers will tend to melt away. So it might not seem to make sense to invest in a system that only has a year or two to pay off. We might still be having this conversation in 5 years time, in which case for future readers "Derp, they shoulda oughta done it back then!"

[Balls]

Just wondering what would be involved in founding a new bank that's friendly towards the interests of bitcoiners. Of course you'd still be dealing with the problems of having to trust a bank, but at least it would be better than trusting the big banks that are always closing bitcoin-related accounts.

How much capital would it take to start a small bank or credit union along these lines? Which country would it make sense to try it in, if any?

There's a hell of a lot of rules and regulations you've got to follow to become one. Unless you're very very rich and well connected it's almost impossible.

[Frijj]

Aren't we meant to be trying to get away from banks? Besides, I'm sure there will be some banks somewhere that will be glad to work with bitcoin. There are always smaller-run ones and you don't have to bank with the big financial giants.

[jbrnt]

When I download a bitcoin wallet, I am downloading a bank. The blockchain is the account database. We don't need a start a community bank and centralise something already decentralised.

[Flashman]

When I download a bitcoin wallet, I am downloading a bank.

Maybe you're downloading a pen, it signs stuff and writes transactions to ledger.

[jbreher]

or because it suddenly hits the banks what a superior form of money bitcoin is,

The fact that Bitcoin is a superior form of money runs counter to bank's interests. Let us remain mindful of the mechanism banks employ for the bulk of their income: They poof money into existence out of thin air, and lend it to others at interest. This counterfeiting cannot be done with crypto. Why on earth would banks want a piece of that?

[bronco]

i would like to be ceo

[Flashman]

or because it suddenly hits the banks what a superior form of money bitcoin is,

The fact that Bitcoin is a superior form of money runs counter to bank's interests. Let us remain mindful of the mechanism banks employ for the bulk of their income: They poof money into existence out of thin air, and lend it to others at interest. This counterfeiting cannot be done with crypto. Why on earth would banks want a piece of that?

Yeah, they do that, but they of all people most realise that the thousands and millions flying around in the banking ether are imaginary until proven otherwise, and it doesn't do them much good if it's on their books when that happens. Hence they tend to like things they call assets.

[s.mouse]

There was a interesting documentary a while ago call The Bank of Dave or something where this British philanthropist business man wanted to start his own ethical bank and he found out that you essentially can't, or at least you can't call yourself a bank due to regulations and the amount of bullshit you have to go through. He did finally manage to open something like a credit union or a building society.

Can't find the whole thong but there's clips: https://www.youtube.com/results?search_query=bank+of+dave

[hikedoon]

  I remember watching "the Bank of Dave".
 If i remember correctly then he had to put up £50 million to even be considered.
 The obstacles and hoops that were put in his path were disgusting.

  I do like the idea of a Bank set up by BTC friendly people though.
 Somewhere for BTC companies/exchanges to open FIAT accounts without fear of the account being shut down for trivial reasons is needed.
 I'm not suggesting a place to store BTC and i don't think the OP was either