Not a good idea, a centralizer bank will be corruption.
OP is not talking about a centralized bank.
OP is talking about commercial banks, which will accept bitcoin deposits.
Topic: banks (Read 1793 times)
If I understand well, main idea behind bitcoin is, in fact, decentralization.
If we want own bitcoin bank, we will have to cooperate with other banks, country low, employ people, have central regulations etc.
I can't see how bitcoin can adapt to it and still remain the same.
If we want own bitcoin bank, we will have to cooperate with other banks, country low, employ people, have central regulations etc.
I can't see how bitcoin can adapt to it and still remain the same.
The way I see it, most of the scams and "hacks" in the BTC ecosystem are actually due to fiat ecosystem transplants. Fiat organs cannot work as is in the altcoin ecosystem. Folks used to trusting fiat organs are too quick to jump in seeing them in the altcoin world and the result is well documented.
If I understand well, main idea behind bitcoin is, in fact, decentralization.
If we want own bitcoin bank, we will have to cooperate with other banks, country low, employ people, have central regulations etc.
I can't see how bitcoin can adapt to it and still remain the same.
If we want own bitcoin bank, we will have to cooperate with other banks, country low, employ people, have central regulations etc.
I can't see how bitcoin can adapt to it and still remain the same.
Might be tricky getting approval / licences for such a thing: im sure the governing bodies that oversee these things are likely to take some 'advice' from existing banks and just say 'no'.
might be easier to convince a small existing licenced (prob local) bank to just 'adopt' btc.
one thing that might work in the existing framework is a kind of decentralized (possibly informally regulated by the community somehow with smart blockchain contracts) credit facility based 'bank': wealthy btc owners could pool funds for people to apply for at a rate of interest. all records would be backed up by blockchain and as it is decentralized it wouldnt need any jurisdiction to govern it. would be an interesting experiment. i know credit is only one aspect of banking,but with btc its the only 'missing' part of the puzzle imo
might be easier to convince a small existing licenced (prob local) bank to just 'adopt' btc.
one thing that might work in the existing framework is a kind of decentralized (possibly informally regulated by the community somehow with smart blockchain contracts) credit facility based 'bank': wealthy btc owners could pool funds for people to apply for at a rate of interest. all records would be backed up by blockchain and as it is decentralized it wouldnt need any jurisdiction to govern it. would be an interesting experiment. i know credit is only one aspect of banking,but with btc its the only 'missing' part of the puzzle imo
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.
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.
I would like to earn interest on my Bitcoins.
I would rather put them in a bank and then try my luck in the lending forums.
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?
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?
wasn't bitcoin started so that we wouldn't have a bank?
I think the OP is talking about traditional fiat-based banks that are friendly towards the interests of Bitcoin traders but don't directly deal with Bitcoin itself. While Bitcoin is supposed to eliminate the need for banks (an idea which I disagree with if Bitcoin is ever to become mainstream), those traders and businesses that deal with both fiat and BTC will require a traditional bank to process fiat transactions. Many banks today are unfriendly towards Bitcoin traders and Bitcoin-based businesses and will shut down their accounts if they see the word "Bitcoin" being mentioned too much.
For example, I know a very popular LocalBitcoins trader who lives in New Zealand. He buys BTC from exchanges and sells it to people via LocalBitcoins in exchange for fiat. He has had two bank accounts (BNZ and ANZ) shut down recently because of Bitcoin-related activity and he recommends those who deal with him from not mentioning the word "Bitcoin" when sending money. This is because the banks don't like Bitcoin and are scared of it. A Bitcoin-friendly bank would easily remedy this situation.
what about creating a ripple gateway specifically made for that function? that could be viable, right?
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?
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?
wasn't bitcoin started so that we wouldn't have a bank?
I think the OP is talking about traditional fiat-based banks that are friendly towards the interests of Bitcoin traders but don't directly deal with Bitcoin itself. While Bitcoin is supposed to eliminate the need for banks (an idea which I disagree with if Bitcoin is ever to become mainstream), those traders and businesses that deal with both fiat and BTC will require a traditional bank to process fiat transactions. Many banks today are unfriendly towards Bitcoin traders and Bitcoin-based businesses and will shut down their accounts if they see the word "Bitcoin" being mentioned too much.
For example, I know a very popular LocalBitcoins trader who lives in New Zealand. He buys BTC from exchanges and sells it to people via LocalBitcoins in exchange for fiat. He has had two bank accounts (BNZ and ANZ) shut down recently because of Bitcoin-related activity and he recommends those who deal with him from not mentioning the word "Bitcoin" when sending money. This is because the banks don't like Bitcoin and are scared of it. A Bitcoin-friendly bank would easily remedy this situation.
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?
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?
wasn't bitcoin started so that we wouldn't have a bank?
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.
Thank you, yes this is what I meant, a 20th century-type bank founded to promote the interests of the bitcoin community. As long as the big banks keep forcing everyone to stay with them in the 20th century we're stuck with their obsolete financial tools. So we might as well start an old-school bank that will allow bitcoiners to do their business without being harassed and bullied by big corrupt banks.
If you google "how to start a bank" a lot of useful info turns up. According to Huffington post it takes $12 to 20 million to start a bank. Here's what I'm thinking. The community provides the star-up capital through a crowd-funding campaign. We could use one of the alts that have asset exchanges (bitshares, Nxt, counterparty) or we could use kickstarter or something like that. The raised capital will be held by the most trusted escrows in the community (several escrows, this would be too much money to entrust to 1 individual). Then the people running the project apply for the appropriate licences, and if they get approval the bank is open for business. It could be run as a limited liability company, or eventually even as a corporation. Investors would hold assets that could be traded on the exchanges. This way nobody can just run off with the cash. Since it's a legit bank the accounts would be ensured by the government, so even if things don't work out and the bank goes under, account-holders don't loose their fiat.
It's a long-shot, but it would be useful to have a reliable bank for bitcoin trading, at least as long as working with banks is unavoidable for doing business with bitcoin.
As you said, it is rather expensive to start a bank and even if the necessary $10 to 20 million were raised via crowdfunding, there would also be real-world expenses to take into consideration such as rent, salaries, utilities, insurance, etc. Bitcoin traders are a tiny minority in the world today, and established businesses like Coinbase and Bitstamp that deal with Bitcoin already have the paperwork in place and links to mainstream banks. I don't think the profits from bitcoin traders' deposits would be enough to sustain a profitable business.
Your target demographic would be individuals who trade and conduct business with bitcoins. For example, LocalBitcoins traders, altcoin exchanges, shops that accept Bitcoin without using BitPay, etc.
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
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
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
Can't find the whole thong but there's clips: https://www.youtube.com/results?search_query=bank+of+dave
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.
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?
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.
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?
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.
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