If I know better, I would say that's a good move but the government isn't trustworthy. Today they're in bed with Bitcoin, Cryptocurrencies and Blockchain, The next day, they are on a full flexge war against Bitcoin. One thing is quite certain ~ If the government is willing to get Bitcoin to be available in banks, then there's a catch. Also Bitcoin in bank just gives government an opportunity to manipulate and exploit bitcoin.
I think if the government will really allow to hold and sell bitcoin through banks that's gonna be kinda weird. I meant like you said it will be probably manipulated by them. I meant the reason of the appear of bitcoin as well as other cryptocurrencies is the free use of it without any third party (banks).
Topic: New EU law: Banks allowed to hold and sell Bitcoin as of 2020 - page 2. (Read 369 times)
November 29, 2019, 12:30:39 PM
November 29, 2019, 12:22:22 PM
If I know better, I would say that's a good move but the government isn't trustworthy. Today they're in bed with Bitcoin, Cryptocurrencies and Blockchain, The next day, they are on a full flexge war against Bitcoin. One thing is quite certain ~ If the government is willing to get Bitcoin to be available in banks, then there's a catch. Also Bitcoin in bank just gives government an opportunity to manipulate and exploit bitcoin.
November 29, 2019, 12:02:49 PM
Why would they? They need their customers to use them for a very, very long term. Even in Turkey some banks are prohibiting Bitcoin trade (although it's not illegal at all) in ways that they literally ban you from using some of their services if you are sending/receiving money from known exchanges. Although the legal obstacle is gone, this doesn't mean that they are going to start doing it.
I agree that the problem is not only that it's prohibited but also that the banks don't want to do that. Creating the legislation that at least allows it is a start, though. Maybe some banks would like to take this opportunity. I think it could actually ensure their survival and the usage of customers you've mentioned. If banks offer people to store Bitcoins with them, they can charge a small extra fee many would be interested to pay for what might seem like double protection as well as the guarantee of legality. And yes, this way this person loses the sole access to money and the pseudo-anonymity, but some might value other things over it and still be interested in cryptos. And besides, it's banks that could profit (and some already do) most from the reduced fees or international transfers. 
November 29, 2019, 05:42:18 AM
Let's not all get so happy, keep in mind there is a need for further approval before this bill is going to get passed, and there's a pretty high chance that it ends up getting blocked, the EU isn't the most crypto-friendly bunch.
I am no expert when it comes to economics or bills, but I feel like this isn't focused on banking - instead its more focused on the anti-AML side of things, and this is just going to impose a new ruleset on the banks? Will this even affect regular users?
I am no expert when it comes to economics or bills, but I feel like this isn't focused on banking - instead its more focused on the anti-AML side of things, and this is just going to impose a new ruleset on the banks? Will this even affect regular users?
November 29, 2019, 04:41:33 AM
I have read the article and from what I can see, the statement of Fabio de Masi is quite true, that banks could potentially market these cryptocurrencies as get-rich-quick schemes without proper briefing to potential investors of the risks involved. But still, it's good to see such adoption on the way. Germany and China are those countries leading the digital payment systems, slowly replacing paper money for digital means, and it's generally good to see Germany keeping up it's ways.
November 29, 2019, 04:36:42 AM
this is not about "banking" (storing/savings) this is about letting EU financial institutions to be able to offer ETF investments and able to day trad bitcoin on behalf of its customers
in the first draft it would have allowed banks to purchase ETF assets via third parties services (thus banks only 'own' the shares) on customers behalf but the newest draft means banks could create their own ETF's and lock up coins in their own custody and then buy and sell shares to customers
its like
no draft = not being able to play poker
first draft = banks being the proxy poker player for someone else that has no clue
newest draft = banks being the 'house' able to shuffle the deck and hand out the cards
in the first draft it would have allowed banks to purchase ETF assets via third parties services (thus banks only 'own' the shares) on customers behalf but the newest draft means banks could create their own ETF's and lock up coins in their own custody and then buy and sell shares to customers
its like
no draft = not being able to play poker
first draft = banks being the proxy poker player for someone else that has no clue
newest draft = banks being the 'house' able to shuffle the deck and hand out the cards
November 29, 2019, 04:24:09 AM
Instead of looking at this development negatively, I would be welcoming this possibility of banks to finally be able virtual assets to their customers. Things depend on the demand on this matter. of course, not all banks will be offering this service because there is no law demanding them to. However, since banks are into business, they will eventually offer something if there is a demand for it because that is the way they are making money. And when this has been previously not allowed, banks who think that there is a big demand from their base customers will certainly look into this possible market.
And that will give you idea that most banks are now silently working or checking on blockchain technology.
They will not say directly that they are considering it, but because of the current developments in crypto and blockchain tech, I think most of them are already into it.
Otherwise, they will be left behind by this technology advancement.
We all can say that it is the opposite of how their system works, but if there's demand, they will always take a deeper analysis on how it will affect their business as a whole.
This is the reason why they are not jumping on the bandwagon so fast.
Sounds like collecting rainwater from your home roof and storing them in your community's Central Water reserve for safety reason OR collecting the rainwater from the Central Water reserve. Well, that is Ok for most people but not for some.
This is Ok as long as freedom to "Be your own bank" is not infringed.
This is Ok as long as freedom to "Be your own bank" is not infringed.
The article describes that the banks are
How they can prove this with bitcoin? if a normal person can easily purchase a hardware wallet or download known wallets such as electrum, bitcoin core or wasabi wallet that can provide a very tight security. While the banks can be considered as a third party which we have seen on what happens mostly if our funds are stored there.
The German Bankers Association (BdB) describes banks as having a wealth of experience in keeping client assets secure and with strong security and risk management.
How they can prove this with bitcoin? if a normal person can easily purchase a hardware wallet or download known wallets such as electrum, bitcoin core or wasabi wallet that can provide a very tight security. While the banks can be considered as a third party which we have seen on what happens mostly if our funds are stored there.
I don't think this would have a huge impact though, to be honest. The banks will still not want to work with crypto-currency and definelty not bitcoin, when it is literally the opposite of the values that they support.
bitcoin isn't in conflict with their values. they can take deposits and issue loans denominated in BTC. they can even apply fractional reserve banking. banking with fiat is functionally no different than banking with BTC---not for commercial/retail banks anyway.
i'd prefer to see people being their own bank, but i suspect there is a big market for banking/brokerage customers who don't want to take custody of their own coins.
Do we have a better source for this? I could only find one similar article, but no one else seem to be reporting on it.
Some US banks have already gone around, so I wouldn't close the doors here. At the end of the day, they'll have no choice but to provide a service if there is demand for it, or they risk getting left behind by competitors.
I don't think this would have a huge impact though, to be honest. The banks will still not want to work with crypto-currency and definelty not bitcoin, when it is literally the opposite of the values that they support.
Some US banks have already gone around, so I wouldn't close the doors here. At the end of the day, they'll have no choice but to provide a service if there is demand for it, or they risk getting left behind by competitors.
Instead of looking at this development negatively, I would be welcoming this possibility of banks to finally be able virtual assets to their customers. Things depend on the demand on this matter. of course, not all banks will be offering this service because there is no law demanding them to. However, since banks are into business, they will eventually offer something if there is a demand for it because that is the way they are making money. And when this has been previously not allowed, banks who think that there is a big demand from their base customers will certainly look into this possible market.
Why would they? They need their customers to use them for a very, very long term. Even in Turkey some banks are prohibiting Bitcoin trade (although it's not illegal at all) in ways that they literally ban you from using some of their services if you are sending/receiving money from known exchanges. Although the legal obstacle is gone, this doesn't mean that they are going to start doing it.
I fully read the ones concerning Germany, and they're the first to take advantage of this draft for their own benefit. At the least, at least the legal status of bitcoin is getting recognized by an organization who once eyed Malta for its openness to cryptocurrencies and other businesses catering to disruptive tech and such. I just hope that this comes into fruition and not just leave the drafts be drafts without any future readings and/or hearings until it becomes a law.
I don't think this would have a huge impact though, to be honest. The banks will still not want to work with crypto-currency and definelty not bitcoin, when it is literally the opposite of the values that they support.
It's going to make the small amount of banks that wanted to work with bitcoin easier to do so, but no one is going to start jumping to offer crypto services.
What's the exact date for this issuance BTW? So, I'm assuming banks can't work with BTC and other cryptos rn?
It's going to make the small amount of banks that wanted to work with bitcoin easier to do so, but no one is going to start jumping to offer crypto services.
What's the exact date for this issuance BTW? So, I'm assuming banks can't work with BTC and other cryptos rn?
The EU has launched a new bill on the fourth Money Laundering Directive, which is scheduled to enter into force in 2020. Until now, banking institutions were prohibited from offering virtual assets or storing them for their customers. The German Bundestag has taken this EU law as an opportunity and recently passed its own bill to implement it, which provides for corresponding simplifications. However, further approval is required before the law can enter into force.
In the new draft law, the requirement for separation, which still existed in the first version, was deleted. The separation requirement stated that the retention of Bitcoin and other digital assets must not originate from the same legal entity as other banking transactions. Accordingly, banks would have had to resort to external service providers who offer an appropriate custody service.
Read more Here
In the new draft law, the requirement for separation, which still existed in the first version, was deleted. The separation requirement stated that the retention of Bitcoin and other digital assets must not originate from the same legal entity as other banking transactions. Accordingly, banks would have had to resort to external service providers who offer an appropriate custody service.
Read more Here
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