Banks To Begin Offering Bitcoin Accounts?

Banks Bitcoin Accounts

Ever since bitcoin got launched in 2009, its popularity surged. The reason for bitcoin’s rising popularity is the fact that it doesn’t require an intermediary (mostly bank) while making a peer-to-peer transaction.  In early 2015, the number of merchants accepting bitcoins surpassed 100,000.  Another reason, people prefer bitcoin is the continuous loss in faith in banks and financial institutions as the latter have been part of various scandals. Does that mean people do not use banks? Banks are very important for the progress of a capitalism based nation. So it is hard to ignore the importance of banks and financial institutions.   So how would it be when bank authorize and recognize bitcoins transactions and start offering btc accounts? Sounds interesting, right?

Banks have seen a lot of technological changes over the years. They compete with each other in offering unique, technologically advanced services to their clients. For instance, we have seen the time when we went to the bank in person to make a deposit or withdrawal. Now we make use of ATMs and internet banking to make almost all banking transactions. Such innovations are created for our benefit.

So how about banks recognizing bitcoins and offering bitcoins account services? This is just like offering saving account, current account services. It is possible to create accounts in USD, Eur and GBP in almost all the banks across the globe. So what if banks start offering bitcoins accounts where customer s would be able to store their earned bitcoins? When customer receives bitcoin, it gets credited to their bitcoin bank account in USD. Currently bitcoins are stored in hard drive and in online wallets. A lot of btc users are skeptical about storing their bitcoin in online wallets and hard drive. Of course, they do have an option of keeping the hard drive in the bank’s safety locker. However users must still access the hard drive while making a transaction.

The idea of banks opening bitcoin account opens up a lot of avenues for the bank to earn profits.

  • Banks can offer loans based on bitcoin account and charge interest
  • Banks can also levy interest for maintaining bitcoin accounts, just like they do with normal currencies
  • This becomes a win-win situation for both customers and banks
  • Banks have the ability to make bitcoin popular as banks have been in the financial market for hundreds of years

It is worth noting that bitcoins/cryptocurrency is not governed by any common, universal law. Banks can leverage on this factor and outlay their own laws that are beneficial for the banks and the customers. Banks can also partner with each other to bring in a common law in dealing with bitcoins and ensures everyone follows it.

So how do you find the idea of holding a btc account in a bank? We are curious to hear from you. Do give us your thoughts and comments on this.

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Bitcoin Advice

All posts published by the Bitcoin Advice Editorial Team combined. Primary objective is to provide quality content to our readers.

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