A medium of exchange doesn't need to be for fiat. As long as you can be able to put your wealth into bitcoin and say that i can exchange this for another good, it's a good medium of exchange.
I understand the worry but really there is no reason to worry about this at all. If banks don't like bitcoin(they never did in the first place) and discontinue their service to bitcoin exchanges, then bitcoin exchanges will think of clever ways to combat this. Traders could move towards more p2p modes of exchange. It'll be absurd for a bank to shut down all of its bank accounts with bitcoin associations because there will be so many and it'll be a waste of effort for them.
I understand the worry but really there is no reason to worry about this at all. If banks don't like bitcoin(they never did in the first place) and discontinue their service to bitcoin exchanges, then bitcoin exchanges will think of clever ways to combat this. Traders could move towards more p2p modes of exchange. It'll be absurd for a bank to shut down all of its bank accounts with bitcoin associations because there will be so many and it'll be a waste of effort for them.
We can always find ways when one door closed a better window of opportunity can be open ready to exploit and can even be much better. Now, there can be some banks who will not continue working with Bitcoin or any establishment that has something to do with Bitcoin but this is not a banking industry consensus. There can be other banks who can see the bright spot Bitcoin is on and be willing to experience the profits associated with Bitcoin.
I am sure that as time goes by, we will not have a shortage of banks who can work with Bitcoin because all of them are primarily motivated by profits and when they can see how lucrative it is to deal with Bitcoin these banks will think twice to forego of the great window of opportunity.
