Topic: [2019-08-31] Bitcoin bank accounts now available to European citizens (Read 437 times)

To me banks and crypto can't be linked

A lot of people are negative about this move, but let's look at the bigger picture. A lot of traditional Banks are simply closing people's Bank accounts in many countries, when they find out that they are using their accounts to buy and trade bitcoins on exchanges. 

Let's give them credit for creating a Bank that actually supports Bitcoin and a Bank that are giving the finger to these older Banks that wants to sabotage Bitcoin's growth.

Some people still need to convert back and forth between Bitcoin and Fiat and they need a Bank that supports that. 

I do not see the real convenience of providing such a banking service. As I understand it, besides the fact that we will pay a commission for bitcoin transactions, will you still have to pay the bank one percent of the transfer amount? It turns out a bit too much. In addition, with such a bank account with a built-in bitcoin wallet, we will be constantly under the supervision of the bank and the government. Something is not very attractive to such a bank account. I don’t know, maybe in some life situations the presence of such a bank account will be beneficial, let's see how people will react to this.

If you there is the need for someone to agree before you can do something to your BTC, it means bad. This I guess you would agree. Whoever it is whether a 3rd party or simply Bitwala itself has the key for you to be able to make any transaction means a bitcoin holder is like at gun point. The only who will use the bank are the ones who wouldn't mind robbed in the middle of the crowded mall.

I wonder who is going to need a bank for bitcoin.
Bitcoin gives people freedom and control over their money.
With bitcoin bank where is your privacy? It is like doing KYC for a bitcoin wallet.
I still can't get it, why would someone need a bank for bitcoin. is it because of security or what?

It is still not entirely clear how this service will work in practice, however, the more different options for services will be, the better. Moreover, such a service is provided by an ordinary bank, which means the further adoption of cryptocurrency. Let people appreciate the convenience of such a service and decide to use it or not. Of course, having such a bank card will mean more control over the use of our funds. However, everyone will have the right to choose which option to choose. All in all, this is not bad.

I’m worried about one moment, this is a commission of one percent. This is too big a commission, a person with $ 100 will give $ 1 commissions and a person who does the same operation with only $ 100k will give $ 1000

okay maybe not declared illegal by the government, but officially always mentioned in the news in combination with illegal use cases, like money laundering, terrorism and other illegal activities.

here is an example when they called for a clamp down / crackdown / regulation:
https://www.telegraph.co.uk/technology/2018/02/09/france-germany-demand-bitcoin-clampdown/

I'm not aware that it was declared illegal at all. It was classified as property afair

in germany the law and crypto regulation would change in 2020.
a regulated licensed crypto service may be useful for some, but not all germans or visitors are looking for such service.
nevertheless, it is interesting to see that this is now possible, some years ago bitcoin was declared illegal in germany.

It's not as black and white as it may seem.

Some people just don't trust themselves with anything of value and for that reason let banks store their fiat and other valuable goods. If you don't trust yourself, then it's probably a better idea to let a bank store everything on your behalf where you enjoy insurance on your valuable goods too.

Then there are a lot of wealthy entities who use custodians to geographically spread out their wealth to reduce the risk of becoming a single point attack factor. Wealthy Bitcoiners for example do that too. Xapo is the largest Bitcoin custodian with at one point $10 billion in holdings. Bakkt has launched a similar service. There is more demand for these custodians than people think.

that was my first thought as well. it would be something for the noobs probably helping them to transition from pure banking to crypto experiments.
but anyone who is into bitcoin for other reasons would find a better way to manage his crypto funds.
even when cashing out a bitcoin atm would be easier and more private. i am not convinced either. but maybe it is good to have it instead of not.

Bitcoin is rather a financial protocol

Not a bank

I think Bitwala is trying to bring crypto newbies into the system.Most newbies would prefer to store their coins with a safe custodian till they're able to learn the ropes themselves.

Why would someone had to be a bank if you are the bank of your own money? It's just like you are putting your Bitcoin to another exchange site promising to hold it for you yet you know what would happen next. I'm not gonna send my Bitcoin onto them...ever. Be your own wallet, your keys, your Bitcoin, no ones ever controlling or taking it away from you.

Agreed, but as with drugs only one or two might be passing all the regulatory burdens and get fully legally.

It's convenient. I hope more and more countries will allow crypto to be introduced into everyday life

Bitwala were doing interviews talking about negotiating a banking license 2-3 years ago. One gets the impression that one party wanted something the other wasn't happy with, until someone changed their mind. No negotiation takes multiple years unless something like that is going on behind the scenes.

I wonder what happened? My guess would be that the regulators had all the negotiating power, and Bitwala gave up something pretty extraordinary to get the deal. The company board at Bitwala is probably now stuffed with banking industry cronies, and their CTO is probably straight out of the German equivalent of the NSA (or someone who worked for them surreptitiously in the banking industry).

The final bitch-slap will be left until Bitwala have been running a few months; their negotiations counterpart at the German banking regulator will change the conditions out from under their feet, putting even more weight on their own side of the see-saw (aka the ejector seat move ). This happens with so many startups in so-called free market capitalism, "compliance" turns into a take-over.


so when a company in a high profile business goes bust very quickly, either they were crooks, or they were eaten by regulators, and preferred to self-destruct the company than let the psycho-chimps steal it

Revolut only offers price exposure to crypto, you can't deposit or withdraw it.

If the need for fiat banking goes stuff like this will look impossibly quaint. Until then it certainly serves a purpose. I wonder how long their banking will last though. Lots of places that make big banking claims often wind up flaking out within a few months.

It's not a bitcoin bank. It's a normal fiat bank with an integrated bitcoin wallet. Looks pretty much like Revolut which allows you to set up a UK bank account online with an ability to withdraw in most EU ATMs and convert to cryptocurrencies and a number of fiat currencies. Now we have a competition from Germany. The more the merrier