Banks and Bitcoin

[Kakashi2020]

Is there a possibility that the banking system would recognize Bitcoin and other Cryptocurrencies by accepting crypto deposits, withdrawals and investments?

[cks003]

For banks to accept virtual coin, it has to be widely accepted as medium of exchange and store of value.  These two conditions required the virtual coin to be stable in value.  Assuming the value is stable, central bank also must be willing to forgo the authority it "enjoys" over the control of monetary policy.  Virtual coin technically removes the role of central bank in determining monetary policy in terms of money supply, interest rate etc.  Furthermore, the market has to decide which coins to be adopted as medium of exchange given there are so many competing coins now.  Therefore, currently the situation is not clear and one has to be vigilant in deciding which coin to invest.

[anyone01]

Sure they will, because why not. A number of them have already started out to accept crypto currency. a couple of banks throughout the world have commenced testing out the crypto bills and have made tie to america with a famous crypto currency like Ripple.

[menchuuy58]

4 hours ago, Kakashi2020 said:

Is there a possibility that the banking system would recognize Bitcoin and other Cryptocurrencies by accepting crypto deposits, withdrawals and investments?

I hope that this could happen. The banks would recognize bitcoin. The soonest the better.

[Martinsx]

It's all dependent on the government of most countries accepting and approving the use of cryptocurrencies for transaction purposes. There are some countries where this is possible already and it's all a matter of time before it's acceptable generally. 

[menchuuy58]

23 hours ago, Kakashi2020 said:

Is there a possibility that the banking system would recognize Bitcoin and other Cryptocurrencies by accepting crypto deposits, withdrawals and investments?

I think so. I hope that bitcoin will soon be recognized by the banks. I believe it is going to happen in the near future.

[Kakashi2020]

On 11/5/2018 at 6:12 PM, cks003 said:

For banks to accept virtual coin, it has to be widely accepted as medium of exchange and store of value.  These two conditions required the virtual coin to be stable in value.  Assuming the value is stable, central bank also must be willing to forgo the authority it "enjoys" over the control of monetary policy.  Virtual coin technically removes the role of central bank in determining monetary policy in terms of money supply, interest rate etc.  Furthermore, the market has to decide which coins to be adopted as medium of exchange given there are so many competing coins now.  Therefore, currently the situation is not clear and one has to be vigilant in deciding which coin to invest.

Agreed.  But if there's a popular demand then banks would have to give in because they would also profit from it.  Also the government would probably step in with additional banking rules and guidelines when it comes to Bitcoin and other popular Cryptocurrencies.  In  my opinion whats happening now with Banks and Cryptos is a wait and see attitude.

[cks003]

19 hours ago, Kakashi2020 said:

Agreed.  But if there's a popular demand then banks would have to give in because they would also profit from it.  Also the government would probably step in with additional banking rules and guidelines when it comes to Bitcoin and other popular Cryptocurrencies.  In  my opinion whats happening now with Banks and Cryptos is a wait and see attitude.

If one is interested in virtual coin/currency, one does not need so much backing and recognition from central banks.  After all, the purpose of the invention is to take out the role of the central authority from dictating the price, what kind of information etc.  If one has a niche market and network, one can introduce virtual coin to the network.  It is self sustaining when there are miners/nodes who can support the network in exchange for small tokens as in the Frontier (network for Etherium) and others.  There are so many virtual coins now in the market that are introduced by big companies and they do not need the backing from central banks.

[Kakashi2020]

21 minutes ago, cks003 said:

If one is interested in virtual coin/currency, one does not need so much backing and recognition from central banks.  After all, the purpose of the invention is to take out the role of the central authority from dictating the price, what kind of information etc.  If one has a niche market and network, one can introduce virtual coin to the network.  It is self sustaining when there are miners/nodes who can support the network in exchange for small tokens as in the Frontier (network for Etherium) and others.  There are so many virtual coins now in the market that are introduced by big companies and they do not need the backing from central banks.

I do agree with you that right now there's a lot of Cryptocurrencies being launched by various groups and organizations which has no backing from the government or is not being recognized by the central bank, but these cryptos like you said are not that popular, it doesn't have a following like Bitcoin hence it presents no danger to the economy.  But in cases of a highly popular coin that's being used worldwide which uncontrolled can post dangers to society and the economy, governments and the banking industry would feel threatened and they will begin to seek ways to control the threat.

Edited November 7, 2018 by Kakashi2020

[Martinsx]

22 hours ago, Kakashi2020 said:

Agreed.  But if there's a popular demand then banks would have to give in because they would also profit from it.  Also the government would probably step in with additional banking rules and guidelines when it comes to Bitcoin and other popular Cryptocurrencies.  In  my opinion whats happening now with Banks and Cryptos is a wait and see attitude.

As long as the government is not in support of any kind of cryptocurrencies, there is no any banking establishment in the country would trade with Bitcoin. If they do so, they are on their own should any case crop up from it. No matter how much the people might ask for it, they wouldn't give in without government approval. 

[menchuuy58]

On 11/5/2018 at 5:11 PM, Kakashi2020 said:

Is there a possibility that the banking system would recognize Bitcoin and other Cryptocurrencies by accepting crypto deposits, withdrawals and investments?

I believe that it will gradually be accepted by banks. I am a member of coins.ph in our country. Its a bitcoin wallet.

[anyone01]

11 hours ago, Martinsx said:

As long as the government is not in support of any kind of cryptocurrencies, there is no any banking establishment in the country would trade with Bitcoin. If they do so, they are on their own should any case crop up from it. No matter how much the people might ask for it, they wouldn't give in without government approval. 

The principle impediment is there's no incentive for banks to include a system which might cannibalise their existing businesses at least not one that's obvious to me. this will logically depart it to governments to look after. Even though a few governments have come in early and banned it outright, US regulators recognize the capability.

[Onizuka]

Banks and Blockchain are polar opposites. The current system is based on centralized regulation, hence why banks and governments partner up. Cryptocurrency and blockchain are called disruptors because they offer an alternative method - a decentralized, not to mention faster, way of transacting. With the exception of Ripple and maybe a few other coins which ironically center on centralization, Cryptocurrency are the emerging competitors of banks. 

[menchuuy58]

On 11/5/2018 at 6:12 PM, cks003 said:

For banks to accept virtual coin, it has to be widely accepted as medium of exchange and store of value.  These two conditions required the virtual coin to be stable in value.  Assuming the value is stable, central bank also must be willing to forgo the authority it "enjoys" over the control of monetary policy.  Virtual coin technically removes the role of central bank in determining monetary policy in terms of money supply, interest rate etc.  Furthermore, the market has to decide which coins to be adopted as medium of exchange given there are so many competing coins now.  Therefore, currently the situation is not clear and one has to be vigilant in deciding which coin to invest.

You're right. I hope that they will study this very carefully. Thanks for your tips.

[Martinsx]

6 hours ago, anyone01 said:

The principle impediment is there's no incentive for banks to include a system which might cannibalise their existing businesses at least not one that's obvious to me. this will logically depart it to governments to look after. Even though a few governments have come in early and banned it outright, US regulators recognize the capability.

If other countries can emulate the footsteps of US, then I believe that cryptocurrency would be a general currency used in all of the countries. Who knows it may still come to pass and we may get the chance to invest more and use it for several transactions. 

[focusedwriter10]

On 11/5/2018 at 12:11 PM, Kakashi2020 said:

Is there a possibility that the banking system would recognize Bitcoin and other Cryptocurrencies by accepting crypto deposits, withdrawals and investments?

This depends on your location. Back in my country, I cannot see that happening, based on the fact that the central bank gave some warning. 

[Kakashi2020]

2 hours ago, menchuuy58 said:

You're right. I hope that they will study this very carefully. Thanks for your tips.

Some banks here are accepting Bitcoins for encashment but the rate is quite low about 60 percent to 70 percent of its value.  I think it's because of the risk involve that's why the price is low.

[focusedwriter10]

2 hours ago, Martinsx said:

If other countries can emulate the footsteps of US, then I believe that cryptocurrency would be a general currency used in all of the countries. Who knows it may still come to pass and we may get the chance to invest more and use it for several transactions. 

Wow, lucky you if banks in the US are accepting cryptocurrencies. Maybe this will come to pass in my country, but that will take years or so.

[Kakashi2020]

1 minute ago, focusedwriter10 said:

This depends on your location. Back in my country, I cannot see that happening, based on the fact that the central bank gave some warning. 

At the height of the Bitcoin rally last year some banks in the Philippines where exchanging BTC, because a friend of mine exchanged his for 60 percent of its value.  I'm not sure if they're still accepting BTC now.

[focusedwriter10]

Just now, Kakashi2020 said:

At the height of the Bitcoin rally last year some banks in the Philippines where exchanging BTC, because a friend of mine exchanged his for 60 percent of its value.  I'm not sure if they're still accepting BTC now.

I am in Kenya, and I am yet to see any bank that is talking about bitcoin. I only know of a restaurant where people pay using Bitcoin. The central bank gave the citizens to tread carefully, which is one of the reasons the banks are not accepting Bitcoins. 

[Kakashi2020]

1 minute ago, focusedwriter10 said:

I am in Kenya, and I am yet to see any bank that is talking about bitcoin. I only know of a restaurant where people pay using Bitcoin. The central bank gave the citizens to tread carefully, which is one of the reasons the banks are not accepting Bitcoins. 

I'm from the Philippines and here anything goes when it comes to income opportunities.  Bank officials can approve such trades unofficially of course, if they feel that they can make a good profit from it.

[focusedwriter10]

3 minutes ago, Kakashi2020 said:

I'm from the Philippines and here anything goes when it comes to income opportunities.  Bank officials can approve such trades unofficially of course, if they feel that they can make a good profit from it.

I have a friend from the Philippines but currently in the US. She told me and I can now confirm. Back here, banks are more concerned with forex exchange, selling of stocks and real estates. They are avoiding fines from the central bank. Now that there was some warning,it means the that in case of anything, the bank will carry the burden. 

[Kakashi2020]

2 minutes ago, focusedwriter10 said:

I have a friend from the Philippines but currently in the US. She told me and I can now confirm. Back here, banks are more concerned with forex exchange, selling of stocks and real estates. They are avoiding fines from the central bank. Now that there was some warning,it means the that in case of anything, the bank will carry the burden. 

When it comes to banks here, they basically likes screwing people up, that's why the low exchange rate of 60 percent of the value while BTC was still on a bull run.  They like capitalizing on a lot of people here that can't cash out their BTC. So some BTC holders gave in and the banks exchanged it internationally for a hefty profit, and they used the people's money too.  So it's a big windfall for banks.  But again that was last year, I really don't know if their still doing it now.

[JPK0007]

Well, i think that Banks will have to eventually recognize and approve Bitcoin and allow Bitcoin transactions. However they will have to work out the proper mechanism which takes into account the high volatility in the value of any cryptocurrency. I think there are some countries in the World who do recognize Bitcoin transactions but i am not sure whether the banks in those countries do allow the transactions in Bitcoin.

[Martinsx]

On 11/8/2018 at 12:13 PM, focusedwriter10 said:

Wow, lucky you if banks in the US are accepting cryptocurrencies. Maybe this will come to pass in my country, but that will take years or so.

Who knows how long it's going to take before other parts of the world would accept and approve the use of cryptocurrencies for transaction purposes. 

In my opinion, it would be the earlier the better for everybody.