Can We Expect A Legally Compliant Bitcoin Bank Soon? - page 3.

timerland

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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?

My answer is no, despite the overwhelming amount of "yeses" within this thread.

However, the reason is not that there is a lack of demand for such a facility, or even that it's not technically feasible - these prerequisites can both be fulfilled. The problems arise from the regulator's side, where with the tightening regulations, being completely legally compliant comes at an extremely large cost, especially when you compound that with the already high establishment costs of a physical storefront.

Maybe if you shifted the criteria to "virtual & physical" instead of physical only, there would be a higher possibility. But for a physically operational bank to completely shift their loan and savings denominations to bitcoin, all the while complying with every clause of every regulation, is next to impossible at this stage.

carlfebz2

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Quote from: bitcoindusts on July 07, 2019, 01:18:58 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. Maybe even have the facility where you can deposit your bitcoin under the bank's safety platform.

And what are you expecting to loan, fiat? If it is a bitcoin bank or cryptocurrency bank then they keep cryptocurrency so that will be another thing if you are expecting to take a loan in fiat and use your deposited cryptocurrency as collateral because you can just cash out your deposited cryptocurrency or else you will need to loan bitcoin and make other assets as collateral.

In overall read its a pure nonsense on what he do tries to pertain.Bitcoin bank or crypto bank is totally an impossible thing to have.Why would we need these ones yet we are our own banks.It might have some features that crypto no have but its always been good to the feeling that we do have the full control of our own coins if its being store with our own crypto wallets.We don't need banks. period.

rmilly

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I am pretty sure Babel Finance is what you are seeking https://babel.finance/

bitcoindusts

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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. Maybe even have the facility where you can deposit your bitcoin under the bank's safety platform.

And what are you expecting to loan, fiat? If it is a bitcoin bank or cryptocurrency bank then they keep cryptocurrency so that will be another thing if you are expecting to take a loan in fiat and use your deposited cryptocurrency as collateral because you can just cash out your deposited cryptocurrency or else you will need to loan bitcoin and make other assets as collateral.

aioc

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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?

Right now there is no demand for it, but it's a good idea, but there will be compliant issues that is going to happen once the preparation for the setting up happens, because banking and cryptocurrency decentralization has a huge difference.

Leyss

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Yes, cryptocurrency banks are already emerging, and I have already participated in several ICO projects that have positioned themselves as cryptocurrency banks. I, however, do not know how viable such banks will be. We must first observe the work of such banks, what services they will provide and to what extent their services will be in demand. Due to the high price volatility of cryptocurrency, the efficiency of such banks may be very low.

SaShiRaJaVu

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Quote from: stomachgrowls on May 22, 2019, 02:59:41 PM

We know on whats the true purpose on why Bitcoin is created on the first place.Right? which is without going through any financial institution and with
this alone we would know that this so-called bitcoin bank wont be possible even it would exist i doubt that no one would use it up.
Collaborating Bank and Bitcoin?its hard to believe on.

We understand the true purpose of bitcoin but how about purchasing your first coin, you need to send fiat currency or the help of credit cards to purchase the coins, either way we need the help of financial institutions to get hold of bitcoin but that does not mean that we need bitcoin bank, what we need is a collaboration between the banking sector and the bitcoin echo system Wink

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slaman29

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Don't we already have legally compliant bitcoin banks? They may not call themselves banks but if you have corporations offering custodial service for crypto, offering loans for crypto, and some even offering interest for your crypto savings, then I would call them banks in any other industry, don't you think?

So they're here already:)

marcbitcoins

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I could say yes as many banks are now successfully in partnership of some local exchanges in which crypto users could use the banks withdrawal facilities everytime they convert to fiat or use Bitcoin in direct spending with some banks merchants then i could think that many businesses are now thinking of a Bitcoin bank specially in the place where Bitcoin is legal.

jseverson

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Quote from: squatter on May 28, 2019, 05:29:58 PM

It's a shame, but that's the direction I see things heading.

Yeah, I never understood why people think banks will roll over and die once crypto takes off. Bottom line is that people trust them with their money, and will likely continue to do so regardless of the medium. It would be trivial for them to integrate crypto related services regardless of their current stance. I can see people maybe relying on them less, but they're not going anywhere.

squatter

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Quote from: OmegaStarScream on May 28, 2019, 10:57:18 AM

Whether you're referring to a crypto friendly bank or an actual bank for crypto, I honestly don't see the use of it. Bitcoin is everything that banks are against, I don't see them going together, to be honest, but that doesn't mean that we won't see services trying to do so, I can actually see BitPay or Coinbase doing this because, for me, they both look like they are trying to centralize crypto or at least, change it to something that is not. And trust me, it's not gonna take that many years, it's probably just around the corner.

It won't just be Bitpay and Coinbase -- in fact, I think they are underdogs in this game. Within a decade, I think we'll see legacy retail banks like Chase, Bank of America, etc. offering cryptocurrency deposit and investment accounts alongside fiat accounts. We're seeing the institutional side take off already, with involvement from Fidelity, Morgan Stanley, the ICE, CME Group, etc. When Bitcoin gets big enough, this will expand into the retail sector.

It's a shame, but that's the direction I see things heading.

boyptc

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That kind of feature will be against to what bitcoin is, a decentralized currency.

Falgorn

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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?

In the future, banks will necessarily provide various services in cryptocurrency. At a minimum, this will be a cryptocurrency exchange for a common currency. The provision of other services, including lending in cryptocurrency, opening and servicing of cryptocurrency accounts, will primarily depend on the degree of legalization of cryptocurrency by states and the creation by the government of necessary by-laws for the practical implementation of cryptocurrency, in particular, the forms and methods of banks with cryptocurrency. Only when there are specific instructions, banks will be able to work with cryptocurrency. It is still difficult to predict what will come of this, given the high price volatility of cryptocurrency.

OmegaStarScream

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Whether you're referring to a crypto friendly bank or an actual bank for crypto, I honestly don't see the use of it. Bitcoin is everything that banks are against, I don't see them going together, to be honest, but that doesn't mean that we won't see services trying to do so, I can actually see BitPay or Coinbase doing this because, for me, they both look like they are trying to centralize crypto or at least, change it to something that is not. And trust me, it's not gonna take that many years, it's probably just around the corner.

phamminhtan

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I find it difficult, because the bitcoin market is very volatile and the scope of use is very limited, and more legal frameworks for bitcoin are needed.

magneto

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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?

I think that it's not something that is necessarily required in order for the bitcoin ecosystem to thrive. Especially when you consider the fact that non-physical versions of the same thing is already about, and they haven't really gained much traction at all. BTC users are always skeptical when they're dealing with a third party that holds their funds.

But I think it's a matter of time before the type of institution that you describe pops up. The question is really in which jurisdiction/country. It's most likely going to be in a country with positive regulation, that is willing to promote crypto businesses, which isn't really a lot right now.

It all comes down to what the regulatory bodies think, though. The concept is doable, and is not new.

Argoo

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Quote from: Jan_Vl on May 23, 2019, 01:30:01 AM

I think there's a chance to make it real but not in the near future. Many people don't trust crypto, or have never even heard of it

I think that cryptocurrency banks will arise and exist in the near future. I already read that, in my opinion, a cryptocurrency bank is already operating in Sweden. In addition, in this forum I have already seen two ICO campaigns, the purpose of which was to create a cryptocurrency bank.
However, ultimately, whether they will develop or not will depend on whether there will be a demand for their services. They have the right to exist, and time will tell how much they will be in demand.

gentlemand

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Quote from: Jan_Vl on May 23, 2019, 01:30:01 AM

I think there's a chance to make it real but not in the near future. Many people don't trust crypto, or have never even heard of it

More importantly, would you trust the bank touting it?

There've been plenty of attempts making big claims. They were all nobodies and all amounted to nothing, or actively set everyone's money on fire a la Neo & Bee.

The only way it would get anywhere is if an existing bank did it. Otherwise it's probably going to be yet another scam.

orions.belt19

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Quote from: avikz on May 22, 2019, 09:01:21 AM

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?

While the community wants to move away from centralized cartels, you are just trying to put the balls in one basket! Why do we need banks for cryptocurrencies while we can have access to our funds all the time? Are you looking for banks to provide custodian services to your bitcoins?? Or give you a mare interest on your holding??

We will certainly see fully digital banks in future which will solely operate in virtual currencies issued by central banks but it is better if we don't see bitcoin banks becoming a reality!!

Many still prefer the "comfort" of banks, that's why they continue to want to integrate it with crypto. Unless there come's a day wherein a special bank is formed, one that would offer different services and cater to the needs of crypto users. However, I don't see much need for it. It would provide "security" for those who are doubtful of the use of bitcoin, but then its decentralization would just be then useless unless there's a way for it to be a third party bank. Anyway, there are already many better ways for us to store crypto, plus keeping it for interest seems pointless. There are many bitcoin debit cards and ATM machines already appearing from third party providers so I think that those would suffice already.

Jan_Vl

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I think there's a chance to make it real but not in the near future. Many people don't trust crypto, or have never even heard of it

Topic: Can We Expect A Legally Compliant Bitcoin Bank Soon? - page 3. (Read 911 times)