Can We Expect A Legally Compliant Bitcoin Bank Soon?

error08

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Quote from: gentlemand on May 22, 2019, 05:42:40 PM

Quote from: CryptoBry on May 21, 2019, 03:13:27 AM

In the bank you can file a loan with your bitcoin or crypto as the collateral.

All it would take is a few violent moves and the bank is totally screwed. There's no way loans and crypto will ever work smoothly together.

What most people will want is a bank that seamlessly interacts with fiat and crypto. Since such a bank would be a little fish in a big pond it would be bullied out of business.

Loans and crypto still work very well all the time, at least in this forum Cheesy

if someone can't pay his loan, then the collateral is taken or negative trust, the same thing will be applied if there is a bitcoin bank, yeah collateral works., finally the debt must be paid.
Since the bank serves for fiat currency and bitcoin in another path, so we just have crypto exchanges offers to buy and sell cryptocurrencies that cooperate with the bank.
don't know if there is someone or a community tried to create one, hmmmm but it will still be linked to the conventional bank for fiat currency, right?

MURONDI

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I think it won't be fun if there is a Bitcoin bank, where access to bitcoin is monitored and taxed, I prefer in my wallet where I have full control over the bitcoin that I have, maybe when at the bank you expect interest and security guarantees from the government.

carlfebz2

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Quote from: bitbrawlers on October 28, 2019, 04:16:30 AM

Quote from: Flor1982 on October 28, 2019, 02:48:19 AM

Most likely they are into the interest and insurance in which current banks offered to their depositors but you have a point about the disadvantage in which Banks are all trully goverment compliant in which they could trully monitor our assest movement from decentralization to centralization therefore i preffered to keep it to my crypto wallet too.

By "insurance" do you mean something like FDIC where your bank deposit is protected even if the bank fails?

Thats what he precisely mean about "insurance" matters but the question is,is there someone would able to do so? Bitcoin Bank is total BS.
We dont need them and we dont need one because this is why Crypto exist which means we do have the full control of our finances without any 3rd party involvement.
Using up banks for storage? then how you would consider on all crypto wallets and storages atm?

bitbrawlers

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Quote from: Flor1982 on October 28, 2019, 02:48:19 AM

Most likely they are into the interest and insurance in which current banks offered to their depositors but you have a point about the disadvantage in which Banks are all trully goverment compliant in which they could trully monitor our assest movement from decentralization to centralization therefore i preffered to keep it to my crypto wallet too.

By "insurance" do you mean something like FDIC where your bank deposit is protected even if the bank fails?

Flor1982

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Quote from: judeafante on October 06, 2019, 09:03:57 AM

The biggest question is why do we need one, when you can do it all by yourself with your own wallets, it's like you want to be under regulation and you want banks and government monitor and tax you on all your holdings I don't think it will be profitable for a bank to set up one because of the volatility of the market.

Most likely they are into the interest and insurance in which current banks offered to their depositors but you have a point about the disadvantage in which Banks are all trully goverment compliant in which they could trully monitor our assest movement from decentralization to centralization therefore i preffered to keep it to my crypto wallet too.

judeafante

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The biggest question is why do we need one, when you can do it all by yourself with your own wallets, it's like you want to be under regulation and you want banks and government monitor and tax you on all your holdings I don't think it will be profitable for a bank to set up one because of the volatility of the market.

nrnahid

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The question about the demand is, however, a very good one. Banks usually operate with high fees. So although more convenient, buying/selling Bitcoin though a bank will be more expensive (in the same way converting EUR/USD/local currency is much cheaper at an exchange office than at the bank).

jaocoincrypto18

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This is possible in the future if Bitcoin will continue to dominate and be legally accepted in the whole world. The same banking system and insurance just different currency so if all establishments will accept Bitcoin transactions then we will need someone to secure our Bitcoin assets in which only the Banks can guarantee it because they are the expert on this particular field.

BitHodler

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Quote from: qwertyup23 on September 30, 2019, 12:01:01 AM

It actually defeats itself if a cryptobank were to be implemented. The reason for the creation of the blockchain was to prevent any third party from handling our transactions and to make everything accessible in a public ledger, which is open to everybody.

It only defeats the purpose of Bitcoin if that's something you value but go against it anyway by using such a service. If you're here for the profits alone as trader, then it shouldn't be something to worry about for you.

It's important to understand that we have a choice to either use or not use these services, and as long as that is the case, I don't see it being a problem.... some services do add a lot of utility when it comes to trading and lending.

At the end of the day, it's nearly impossible to not deal with a centralized party.... you're either buying or selling on an exchange, day trading, lending, etc. As long as you don't keep your coins on an exchange when you're done it's fine.

teosanru

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Quote from: CryptoBry on May 21, 2019, 03:13:27 AM

I am wondering if it is possible that there would be a physical bank operating somewhere that is fully compliant with the banking laws but focusing on cryptocurrency business? I mean a bank that can be providing the usual banking services but all things are tied to bitcoin or cryptocurrency.

The bank should offer bitcoin debit and credit cards and of course will operate bitcoin ATM machines. In the bank you can file a loan with your bitcoin or crypto as the collateral. Maybe even have the facility where you can deposit your bitcoin under the bank's safety platform.

Is this just a dream or is there a possibility that this can happen eventually maybe 10 or 20 years from now? Or maybe in the first place there is no need nor demand for this?

This isn't happening in any time near future. Banking and bitcoin are two stringent enemies to each other. Best banks would do is tie up with cryptos like XRP which would be done to merely increase the swiftness of the transactions over the globe. Also inter banks transactions could happen using the blockchain. Moreover another thing how banks could tie up with crypto is that banks could use their idle funds and invest them in cryptocurrencies. Don't imagine anything like depositing and withdrawing cryptocurrencies or bitcoin directly into a bank or something like a bitcoin ATM from a bank because there are never going to happen on a great scale.

qwertyup23

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Quote from: Kemarit on August 10, 2019, 05:29:49 AM

Quote from: ccryptopark on July 30, 2019, 05:45:50 PM

granted there are already BTC atms with proper AML compliance from cyber security firms like Ciphertrace so it would make sense that a bank is the next evolutionary step

It's different and there are no correlation or comparison with BTC ATM's and bank. I will assumed that BTC ATM are not even sponsored by any banks.

So I don't think that we can have a legally compliant Bitcoin Bank simply because those two is not a perfect combination. Crypto is supposedly a decentralised system with no central authority so how can a definition of a bank fit it? So it won't happened not even in the next 10 years. So it's either you go with the traditional banking system or style with crypto and hold your coins and your private keys and have full control of it.

It actually defeats itself if a cryptobank were to be implemented. The reason for the creation of the blockchain was to prevent any third party from handling our transactions and to make everything accessible in a public ledger, which is open to everybody.

If a cryptobank were to be created, someone has to regulate, control, and manage the bank (which we all know is purely driven for profit). Someone is still handling our transactions. Not to mention, the fees behind every transaction are subjected.

audaciousbeing

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Initially, I had maintained that there is no way we would have a crypto bank because the initial position of bitcoin and crypto is to ensure everyone is his own bank and there is no authorized body to be the deciding what the funds is being used for. However, with the way things are going, there is no way we wont get to that point because as development continues to happen, there would be need to be a fusion between crypto and fiat and that would be pushed forward by the entrepreneurs which might lead to a crypto bank.

Another point worthy of note is that for an industry to develop there is need to be a coffers where the people who needs funds can approach to raise money for their project for interest while those who with excess funds can get returns on the money. With that, there would be expansion in businesses and real projects being carried out with funds generated from crypto.

Lanatsa

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Quote from: iMark on August 24, 2019, 07:35:51 AM

Quote from: Lanatsa on August 21, 2019, 12:13:01 PM

Quote from: Ridwan Fauzi on August 14, 2019, 08:43:54 AM

I doubt with it, because bitcoin was designed as a bank for their user. Every user can do these things easily without an organization or a party to manage it.

As done by this forum, some user can make a loan to other people and they will pay within the allotted time with consequences when someone who borrows late to pays then their account will have a negative trust.

Indeed!

With Bitcoin we are own banks where we can held up our assets without any need of third parties or services.This is what makes Bitcoin itself becomes popular and
an exceptional innovation.We don't need banks yet we are already get tired of it since in the beginning.

Actually that idea is like making an exchange site or online wallet into physical form by adding some facilities like banks have. and your thoughts are like becoming your own bank will still exist even though bitcoin bank in the future is present, the bank won't force you to join, right? I think to implement this idea, then regulations for bitcoin must be made first.

No one would really force you but for those people who are fully aware on the primary reason on why crypto is being created will definitely not used
up these kind of services. What for? when it comes to security,yourself storing common sense will be enough and in terms or capital gains or interest you can do it on your own.
This is why we wont able to see these bitcoin banks.

Quote from: 1Referee on August 25, 2019, 03:14:36 PM

Not everyone here has figured out that most people don't really care about being their own bank. They are here either to speculate or earn money and use an exchange to cash out.

You got a point though which is actually the fact on most cases.People nowadays doesn't even know on why crypto is being created on the first place yet the main priority into their minds is on how to make money.The worst? complying KYC just to get some pennies.

jrrsparkles

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Quote from: TIDOVEE on September 10, 2019, 12:12:33 PM

One of the purposes of which digital coin is in existence is to relief bank and bank users of irrelevant stress with the technological upgrade.the bank is structured to be digital either. But I also think if there are few financial organization that can help with the management of Crypto Cash Dispenser it will be fine,or will all buy and selling of goods be online?? Maybe there should be some bitcoin in fiat form that can be withdrawable from the dispenser. As regards the loan, I noted that the loan is possible and is already existing.

Bitcoin can never turned out to be in physical form,but already lot of bitcoin ATM at the moment so you can convert your fiat and get bitcoins to your wallet.

The current bitcoin loans are from the individual users so they are collecting huge interest to assist the risk on it but no regulated system yet to avail bitcoin loan.

jdarren

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Will need to work with companies to help with AML compliance like Ciphertrace

TIDOVEE

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One of the purposes of which digital coin is in existence is to relief bank and bank users of irrelevant stress with the technological upgrade.the bank is structured to be digital either. But I also think if there are few financial organization that can help with the management of Crypto Cash Dispenser it will be fine,or will all buy and selling of goods be online?? Maybe there should be some bitcoin in fiat form that can be withdrawable from the dispenser. As regards the loan, I noted that the loan is possible and is already existing.

nankers

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I don't think it's impossible if in the future something like this will come true. But I am sure that in the near future expectations about a cryptocurrency bank will soon be realized. Some time ago I read an article about something similar like this. Visit this link https://cointelegraph.com/news/swiss-crypto-banks-receive-licenses-from-financial-regulator

stfN2128

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I'm not sure if this is something what you are looking for, but a german bank is working on bulding a bitcoin bank. just check bitwala -> https://www.bitwala.com/

i hope it helps

1Referee

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Quote from: iMark on August 24, 2019, 07:35:51 AM

the bank won't force you to join, right?

This is an important bit of information. People here seem to dislike the idea of centralized services, but the thing is that people can decide for themselves to use them or not. Not one of the services we have in crypto forces you to use them, yet people keep trashing their business models because it's against what crypto stands for. Roll Eyes

Not everyone here has figured out that most people don't really care about being their own bank. They are here either to speculate or earn money and use an exchange to cash out.

In order to have newbies appreciate what Bitcoin stands for, we need another Cyprus type of crisis where everyone with a bank account in a specific country is subjected to a haircut. We haven't seen any of this happen since 2013.

iMark

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Quote from: Lanatsa on August 21, 2019, 12:13:01 PM

Quote from: Ridwan Fauzi on August 14, 2019, 08:43:54 AM

I doubt with it, because bitcoin was designed as a bank for their user. Every user can do these things easily without an organization or a party to manage it.

As done by this forum, some user can make a loan to other people and they will pay within the allotted time with consequences when someone who borrows late to pays then their account will have a negative trust.

Indeed!

With Bitcoin we are own banks where we can held up our assets without any need of third parties or services.This is what makes Bitcoin itself becomes popular and
an exceptional innovation.We don't need banks yet we are already get tired of it since in the beginning.

Actually that idea is like making an exchange site or online wallet into physical form by adding some facilities like banks have. and your thoughts are like becoming your own bank will still exist even though bitcoin bank in the future is present, the bank won't force you to join, right? I think to implement this idea, then regulations for bitcoin must be made first.

Topic: Can We Expect A Legally Compliant Bitcoin Bank Soon? (Read 911 times)