What Do Banks Think About Bitcoin?

C O N T E N T S:

KEY TOPICS

  • Some cryptocurrency experts think that big banks cannot stop Bitcoin (BTC) and other cryptos even if they develop their own blockchain.(More...)
  • As I understand the concept the blockchain makes up the accounting ledger and is used to keep track of Bitcoins and eliminate the "Central Bank" which sounds good.(More...)
  • The best Bitcoin exchanges, like Coinbase, still allow you to link credit cards to your account, while others only allow you to use debit cards or other means of extracting money directly from your bank.(More...)

POSSIBLY USEFUL

  • This in relative terms does not mean Bitcoin will replace fiat money although it could replace other fiat currencies like the dollar.(More...)
  • Ding-dong DeflinGuy has probably never heard of fractional reserve banking when he talk about all the money they make up, and how that literally helps currency stay stable and not ridiculously volatile like Bitcoin.(More...)

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What Do Banks Think About Bitcoin?
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KEY TOPICS

Some cryptocurrency experts think that big banks cannot stop Bitcoin (BTC) and other cryptos even if they develop their own blockchain. [1] There are plenty of younger portfolio managers who think the banks are like Sears and J.C. Penney: they're old-line brick-and-mortar stores that are about to lose their relevance thanks to all sorts of new technologies from bitcoin, blockchain, PayPal Square." [2]

Just recently, the same banks played another big role as they stood as keepers of fiat flowing between national currencies and cryptocurrencies such as Bitcoin (BTC), not exempting Ethereum (ETH) and Ripple (XRP). [1] This gives banks no choice than to adopt Bitcoin (BTC) or cryptocurrency in their banking system. [1] Kelly Tyler, Chief Commercial Officer at A7 Core, and CEO of A7 Core, which is raising capital via an ICO to move coupons to a blockchain, approves that banks cannot stop Bitcoin. [1] Banks actually have the power to make or destroy Bitcoin (BTC) and other coins. [1] The decision whether big banks will develop their own blockchain or use Bitcoin (BTC) as a substitute or complement and as an enhancement of national currencies is a big decision to banks than just talks. [1] The BIS, which is often dubbed the central bank of central banks, released a chapter from its upcoming annual report on Sunday dismissing bitcoin as "a poor substitute for the solid institutional backing of money." [3]

"I don't think many people appreciate just how early stage this technology is," Jamie Burke, the founder and CEO of specialist bitcoin and blockchain VC fund Outlier Ventures, told the Blockchain Alternative Investment Conference in London on Monday. [3]

Cramer noted that an increasing number of young fund managers and financial analysts believe banks will eventually be overtaken by Bitcoin, the blockchain, and fintech applications such as PayPal and Twitter CEO Jack Dorsey's "Square" payment app, as the new generation moves from traditional banking systems to digitalized networks that are cheaper, faster, and more secure. [2] Many banks and centralized systems like Paypal won't allow poker site transfers - especially in the U.S. Why would someone not be allowed to play with their own 100 bucks for some entertainment? With bitcoin there is no one to censor or stop their transactions, showing one of the true advantages of decentralized money. [4] The main reasons people deposit money in the banks are for security and digital money (2 things Bitcoin is the best at). [5] This week, on CNBC Mad Money, Cramer emphasized that Bitcoin and PayPal are pressuring banks and major financial institutions already at risk of losing relevance due to the emergence of more efficient alternatives. [2] Of course you have to obfuscate the bitcoin transaction because places like coinbase have the same issues that traditional banks do in this regard. [4] The Bank also expressed interest in the technology that powers Bitcoin, DLT and blockchain. [6] Bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. [4] This is exactly why banks are adopting the blockchain technology behind bitcoin and crypto. [4] Recently, British economic historian and author Niall Ferguson told the Bank of England that Bitcoin is the financial system of the future. [7] A much more appropriate answer is that big banks cannot kill bitcoin. [5]

I do think that bitcoin allows new possibilities for securing it compared to cash, gold, etc in your home. [4] The BIS has told central banks to think hard about the potential risks before issuing their own cryptocurrencies. [8] "In general no but I think it depends on the fiat currency of the central bank. [6]

As I understand the concept the blockchain makes up the accounting ledger and is used to keep track of Bitcoins and eliminate the "Central Bank" which sounds good. [9] Cash can be stolen, credit card numbers can be stolen, your bank account can be drained, etc. One of the idea behind bitcoin is that you don't need a stupid bank to tell you what and when to do with your money, or a stupid government to eat away your savings by inflation. [9] Stopping the sellers. stops the buyers.limits the growth of the little guys getting rich. NEXT they will be stopping the buyers.UNBANKING people who buy Bitcoin using their Bank accounts. (they are doing this now already) So whats next? Regulation and outright Banning or do we start transacting peer to peer without involving the banks at all in our personal finances. [10] My point was that bitcoin doesn't offer special protections against theft; practically, banks and credit cards are much more secure because you aren't liable for fraud. [9] Bitcoin has done more for me than any dollar amount in a Bank. [10] Most significantly, the bank argued that the decentralized nature of Bitcoin and other cryptocurrencies--often touted as the currencies' main advantage--is in fact a fatal flaw. [11] Bitcoin and other cryptocurrencies, therefore, can be classified as "commodity money? (money whose value comes from a commodity of which it is made), while the central banks have always been based on "credit money? (any future monetary claim against an individual that can be used to buy goods and services). [12]

Besides, who's to say a Bitcoin Standard would work? I like to think it would, but the whole system is built on debt and growth projections. [10] If you think Bitcoin can't be stolen, then you are redefining the meaning of stolen specifically so that you can say Bitcoin can't be stolen. [9]

"It's not just about banks being able to trust Bittrex; it's about banks being able to trust crypto in general, and I think it's really showing that crypto is turning the corner in terms of mainstream acceptance." [13]

Tchir: I don't think it's big enough quite yet, but if you go back, there was a spike in credit card default rates earlier this year, and shortly after you saw a lot of the big banks stop allowing people to buy bitcoin or other cryptocurrencies on their credit cards. [14] Yeah, I think there were actually people speculating with credit card money to buy bitcoin or other cryptocurrencies, and that's, I think, very problematic for those individuals. [14] "While I?m skeptical of most of them, I do think people are a little bit underestimating bitcoin, specifically, because it is like a reserve form of money," Mr. Thiel claimed at an investment conference crowd in Saudi Arabia last October. [15] Bitcoin and cryptocurrency was purposely designed with anonymity and lack of control in mind (think money laundering and terrorism financing), and user/consumer security and protection was not the main focus of the original protocol. [15] He thinks that Bitcoin and another crypto will coexist with government-issued cryptocurrencies, because they offer fundamentally different things. [16]

You can buy Bitcoin and Ethereum and receive Bitcoin payment directly into your bank account. [17] "Potentially, Africa's huge unbanked population combined with the burdensome process of opening and operating a bank account should make Bitcoin an instant hit. [18] Nine months after getting funded, the startup pivoted to a very different offering : typical bitcoin wallet focusing on consumers with linked bank accounts and offering a cash-out via convenience stores. [18] The irony of above meme (created in early 2016 and resurrected in late 2017) is that no one who seriously shares it is using Bitcoin as his or her primary bank. [18] Banks don't allow remittance with such countries, so a Bitcoin provider would have no legal competition. [18] Although cryptocurrencies have proven that it's possible to have a decentralized monetary system away from the purview of central banks, the Reserve Bank of Australia disagrees that Bitcoin can function as money, at least for now. [19] What these cryptocurrencies would eventually look like is a Bitcoin -- except with the central bank having the ability to add or remove individual units from circulation at any given time. [16]

An executive from the Reserve Bank of Australia admits that Bitcoin's technology is promising, but the environment is too risky to make the cryptocurrency practical as a form of money. [19] "So, if you look at blockchain? I think the banks are really working on this now because the potential is so huge and if the top five, six global banks would put their minds to it and agree on a standard, you could force (that) standard onto the globe," Ralph Hamers, chief executive of ING Group, told CNBC'S Arjun Kharpal at the Money 2020 fintech conference in Amsterdam on Monday. [20]

I think people go wrong in even comparing Bitcoin and others to ripple, they both have equal value in different races. [17] Think of it another way: an 18 year old sitting on a hard drive of 1000 mined BTC from 2013 can drastically change the price of Bitcoin for a day or longer. [21] Question for YOU: which bitcoin money transfer provider do you think has a practical chance to reach 1% market share in ANY global corridor in the next several years? Please describe your brief rationale in the comments section below. [18] It doesn't mean that you can't like bitcoin, that you can't think it's going higher, but I think you have to be aware of that. [14] "Indeed, even if one is quite skeptical of whether Bitcoin will have a significant role in the economy in the future, I think it is hard to avoid some admiration for its design," said Tony Richards, head of payments policy at the RBA. [19] As to what I think about the future of cryptocurrencies, I do feel that the price of Bitcoin and other cryptocurrencies will surely fall under Government pressure. [16] I think that Bitcoin, Ethereum, Factom and Maidsafe all do something very different and they complete each other. [17]

The best Bitcoin exchanges, like Coinbase, still allow you to link credit cards to your account, while others only allow you to use debit cards or other means of extracting money directly from your bank. [22] That said, JPMorgan is starting to use the underlying technology behind bitcoin, known as blockchain, as a potential way for banks to more accurately track trading and assets. [23] Obviously with government regulations and banks not banking people in the cannabis industry, if people create tokens for that, that then can be traded to Bitcoin or other coins too, in order to cash out. [23] Bitcoin is a digital currency that is not tied to a bank or government and allows users to spend money anonymously. [23] Unlike traditional currencies, you can?t keep Bitcoins in a federally insured bank. [22] If you?re committed to buying Bitcoin with a credit card, one option would be to look for a card issued by a credit union or smaller bank. [22] Others have a different vision, in which banks are brought to their knees by central banks, by means of endowing them with the unwanted exclusive authority to create money, much of which is actually done by commercial banks by means of fractional reserve banking, a fancy term for banks lending money they don?t have, thereby creating it out of thin air, like a bitcoin. [24] Unfortunately for the sovereign money dreamers, the government and central bank said Vollgeld was very definitely not OK, especially since they?re pretty busy trying to keep a single franc from become as valuable as a single bitcoin, only with no downside. [24]

Another reason -- I honestly think the best Bitcoin and blockchain applications would be invisible to the everyday consumer, but it'll essentially be the internet of money that's powering all these transactions, similar to what Paypal did to digital money. [23] My question is and this maybe could be a part two of this video, but my question is what do you think is going to happen as this transition happens? Like as we enter this new phase you know is the dollar going to be displaced? Is the dollar going to be replaced? As the world reserve currency with cryptocurrency whether or not that's Bitcoin we don't know, but it will likely be one or another cryptocurrency or multiple cryptocurrencies right. [25] So I think a lot of people misconception is associating blockchain and bitcoin with scams, from drugs and to crazy stuff. [23] I think that bitcoin and blockchain, specifically, are going to be slow and outdated. [23] Although I think these contracts have a very high chance of being eventually delisted as trading volumes decline and the bitcoin price keeps going lower, the CME futures contracts popped the bitcoin bubble even before the regulators jumped in. [26] As I have mentioned previously, I think the term "bitcoin market cap" is absurd, as there are no sales and earnings to discount into the future. [26] That means $111 billion is "invested" on the way to zero, which is where I think bitcoin is going. [26]

What do you think is going to happen? How is this all going to really turn out in the end? Or banks going to disappear, government's going to disappear? I don't know. [25]

POSSIBLY USEFUL

This in relative terms does not mean Bitcoin will replace fiat money although it could replace other fiat currencies like the dollar. [1] Babies tend to grow up before they are given any responsibility and crypto developers are hard at work helping bitcoin and other digital currencies grow up. [3] Crypto advocates say that this -- and BIS's other criticisms of bitcoin and cryptocurrencies -- misses the point. [3] Newton and Allaire both pointed to the bitcoin Lightning Network and other so-called "Layer 2" projects that are built on top of existing cryptocurrencies and allow for greater volumes to be processed without sucking up huge amounts of energy but still ultimately rest on the underlying trust of the bitcoin blockchain. [3] Bitcoin as a cryptocurrency has established partnerships with various institutions such as fintech firms to develop the applications of blockchains in capital markets, says Ringgold. [1] The risk of creating their personal blockchain cannot be overlooked either will be adopting Bitcoin be any big news to them. [1]

Critics in the crypto world say the report missing the point -- bitcoin and other cryptocurrencies are still in development and shouldn't be judged yet. [3] To bitcoin adherents, bitcoin and other cryptocurrencies are still a work in progress. [3]

Bitcoin mining currently uses about as much electricity as Switzerland, according to BIS. [3] Bloomberg ran a headline stating that bitcoin could "break the internet" if used at a national scale. [3]

The advantage of a bank adapting and adopting cryptos such as BTC is likely to have more people banking with them. [1] Some banks have already started introducing cryptocurrency into their banking system, including blockchain. [1] Ripple (XRP) blockchain has been implemented in the National Bank of Abu Dhabi (NBAD) and has become the first bank in the Middle East to use Ripple's solution to provide real-time cross-border payments to its customers. [1] The blockchain is a decentralized technology which most banks cannot adapt or risk. [1] They should also take a deep look at how the National Bank of Abu Dhabi (NBAD) has profited by using Ripple XRP. [1] The sooner banks adapt and adopt some form of blockchain technology the more relevant they will remain," Tyler added. [1]

They are the gatekeepers of national currencies flowing between central banks and the general public. [1] My personal contribution will be that big banks should help make the cryptos rather than destroy them and by introducing BTC and Altcoins in their economy and banking system. [1]

Allaire said: "There's a lot of infrastructure work going on and I think it's really, really key because I think the consensus within the industry is that if we can solve some of those issues in the next year to two years, then we can have products that are actually used by a billion people. [3] Something like 98% of bitcoin's original code base has been rewritten since it was first created in 2009 and developers around the world continue to work on new ideas, solutions, and technology. [3] Energy usage is a serious issue for bitcoin, which requires ever greater levels of computing power to validate transactions on its network. [3]

Blockchain technology, the underlying technology that allows for the anonymous creation and online public recording of cryptocurrency creation, has been praised by Bitcoin critics as the potential precursor of future cashless payment and transaction technologies. [27] Whether its bitcoin or cryptocurrency generally or the massive revolution in online payments that is being achieved by the big Chinese tech companies, that's the financial system of the future, and it is still small enough not to be systemically important in 2018. [7]

Cointelegraph covers Fintech, Blockchain and Bitcoin bringing you the latest news and analyses on the future of money. [6] From my perspective the advantage of bitcoin is being in complete control of your own money. [4] "I wish I had a bitcoin for every phony white paper I?ve been shown the last six months, by people trying to raise money before the SEC clamps down," Ferguson reportedly said last week. [7] By killing bitcoin if you mean to discontinue its use such that it loses its intrinsic value, that can?t happen as long as any two people in this world chose to use it as a medium of exchange. [5] Almost nobody prices goods in Bitcoin, few use them for payments, and, as a store of value, they are no better than gambling in a casino," they said. [27]

Bitcoin is a distributed, worldwide, decentralized digital money. [4] Bitcoin, for instance, can be used to send money from one person or business to another, without the involvement of security boxes, armoured cars, and third-party service providers. [28] A safety net in case they slip and steal your money? Why would bitcoin need that. [4] Last Monday, Professor Robert Shiller, who received the 2013 Nobel prize in economics and is famous for the Case-Shiller Index, published an article talking about the way the allure of bitcoin fits enthusiasm around previous attempts to reinvent money. [7] Educating people and having simple tools available for the average user to control/transact bitcoin securely is the way to go. [4] Despite the price fluctuations and come what may. bitcoin is a currency that's governed by the mass majority of the people. [5]

Throughout 2017 and early 2018, former hedge fund manager and financial analyst on CNBC, Jim Cramer, expressed his skepticism towards Bitcoin and the cryptocurrency market, encouraging investors to be cautious. [2] The cryptocurrency market experienced a 70% drop since its all-time high and assets like Bitcoin, Ethereum, and Bitcoin Cash have fallen by more than 65%. [2] As Abagnale emphasized, cryptocurrencies like bitcoin and Ethereum are still at their infancy. [28] According to Moser, that was included to protect other private markets including cryptocurrencies like Bitcoin. [6] Saying that bitcoin is bad because it doesn't have FDIC coverage is like saying that bitcoin is bad because it doesn't have airbags. [4] You might be interested in Bitcoin if you like cryptography, distributed peer-to-peer systems, or economics. [4] With any understanding of Bitcoin, one can very quickly figure out that a centralized banking model is non starter. [5] Those networks are also more prone to congestion the bigger they become, according to the BIS, which noted the high transaction fees of the best-known digital currency, bitcoin, and the limited number of transactions per second they can handle. [8] If you have a fairly powerful computer that is almost always online, you can help the network by running Bitcoin Core. [4] It's a great tool, no doubt, but Bitcoin has one big obstacle that prevents it from mass adoption: the network capacity. [4] I mean they would try to create FUD and secretly buy all they can, but the Bitcoin network won?t go down. [5] It is also not possible to forge or create more bitcoin without running a 51 percent attack against the network, which is virtually impossible given its computing power. [28]

Previously, Cramer warned investors to be cautious about Bitcoin and the blockchain space. [2] As such, Bitcoin and its many smaller cryptocurrency peers are "not the answer to the cashless economy," they said. [27] The market valuation of Square, which has been offering Bitcoin exchange services for the past year, increased by 182%, from around $9 billion to $25 billion. [2]

Coinbase, one of the biggest U.S. crypto trading venues, has developed relationships with Cross River Bank, Metropolitan Bank and Silvergate Bank in the U.S., and recently secured a Barclays PLC bank account in the U.K. Noble Bank International, based in San Juan, Puerto Rico, took over banking duties for Bitfinex last year after the exchange was dumped by Wells Fargo & Co., three people familiar with the matter said earlier this month. [29] The problem with the cryptocurrency and its brethren is that they are not scalable and are more likely to suffer a breakdown in trust and efficiency the greater the number of people using them, the Bank of International Settlements (BIS) said Sunday in its latest warning about the rise of virtual currencies. [8] Abagnale's viewpoint on the blockchain and cryptocurrency is noteworthy because Abagnale generated millions of dollars in profit by breaking into the broken financial system and structure of banks, by forging checks, stealing cash, and redirecting funds. [28] "A CBDC for all would challenge the current model of banks taking customer deposits and using that money to fund the lending that helps drive the economy." [27] They keep enough money on hand to cover your expected day to day needs but you, and every other customer of the bank, all know that they can't possibly return all of your deposits. [4] Lastly, these banks could try to make their money more user-friendly, making it digital, and perhaps even issuing tokens of their own. [30] Banks use fractional reserve lending, they don't actually have your money, they have a tiny fraction of yours and everyone else's money and lend the rest out. [4] Banks and traditional systems are simply archaic by comparison when it comes to simply moving money electronically. [4] You still can outside of the U.S. The reason is that the U.S. gov passed a law that made it illegal for banks to send/receive money from the online poker sites. [4] The core of the story is that the banks held his money in limbo and charged him for it. [4] Somewhat ironically you could actually put 1 of those in a safety deposit box in a bank (if available), but at least the bank wouldn't be able to control your money. [4] With a bank's blockchain, I now have to trust the bank and deal with an inefficient payment network. [4] The blockchain is instant and when blockchain is utilized by private banks, it rapidly speeds up the transaction time. [4] With the blockchain, bank fraud which Abagnale had committed is not possible. [28] It could also transfer funds to and from banks accounts instantly with a max fee of 25 cents. [4] Now, it's used exclusively by banks to transfer large funds. [4] He goes down to the bank and they tell him they don?t put account numbers on outgoing wire transfers. [4] I explained he needed to open a gemini account and link his bank. [4] The Bank of England has been particularly thorny in its stance towards cryptocurrencies in general over the past few years. [6] The Bank of England began to change its tune more recently, announcing a cryptocurrency task force that would provide an in depth study into the sector. [6] A cryptocurrency-based economy would mean that this monopoly is lost, and a bank may find itself needing to sell/buy large amounts of cryptocurrency to regain control. [30] For the most part of human history people were their own banks. [4] There is far less apathy towards blockchain technology, to the extent that banks and financial service providers are actively look at ways to implement the technology to improve their systems. [6] Bittrex is working with New York-based Signature Bank, which will hold the dollar-denominated funds, along with other financial firms. [29] On Tuesday he has given a seminar to the Bank of England, talking about the 2008 financial crisis and the reactions to it to this day. [7] "The consequences for bank business models and financial stability would need to be carefully parsed," they wrote. [27] The government doesn't need to pass and enforce an online poker ban, they just twist the arm of the banks. [4]

It’s about banks being able to trust crypto in general. [29] This system is currently being overhauled and the bank is still working on the technology that will power the revamped RTGS. [6] “It’s not just about banks being able to trust Bittrex. [29] They accomplish different things if banks are able to provide payment systems to customers that are multiple times faster than the current status. [4] The rest are digital signals on ledgers at banks and in businesses. [27] The banks that are doing these transfers aren't executing 1700 tr/sec. [4] I'm not saying this is the right way to look at banks, but it's certainly how younger portfolio managers view the group, and they are winning right now judging from where the group is trading." [2]

The piece speculates that a central bank digital currency (CBDC) authority could be created to regulate future digital currencies created by evolved blockchain financial technologies. [27] He highlighted the fact that the future development of a central bank digital currency would be necessitated by the needs of the public. [6] While the use of cryptocurrencies has increased, Etheridge said that there were no plans to launch a central bank digital currency. [6] In 2018, some of the world's most influential central banks are sitting up and taking notice of cryptocurrencies and what they like to describe as distributed ledger technology (DLT). [6] Over the past few years, central banks and financial institutions have had to grapple with the emergence of cryptocurrencies and their steadily growing adoption around the world. [6] Jurgilas addressed the talking point of a central bank digital currency by unpacking how cryptocurrencies came into existence in the first place. [6] No central bank has issued a digital currency, though the Riksbank in Sweden, where the use of cash has fallen, is studying a retail e-krona for small payments. [8] One way would be for the central bank to issue a central bank digital currency, another option is to open up Central Bank bank accounts for everyone directly there." [6] In essence, normal banks would no longer be able to issue currency and people would have accounts at the central banks. [6] Of course, if a currency is not performing well, you have hyperinflation and a country where people lose trust of rule of law of its central bank. [6]

For any form of money to work across large networks, it requires trust in the stability of its value and in its ability to scale efficiently, the BIS, an umbrella group for the world's central banks, said in its annual report. [8] Central banks set their policies by setting interest rates in relation to the country's money reserves, of which it is the monopoly supplier. [30] Central banks must defend themselves against cryptocurrency, the report says, by carrying out 'effective monetary policies." [30] His words echo those of Christine Lagarde, Managing Director of the IMF, who said in a speech at the Bank of England last year: "The best response by central banks is to continue running effective monetary policy, while being open to fresh ideas and new demands, as economies evolve." [30] "These trends have sparked a discussion about whether central banks should issue their own digital coinage," said the banks' leaders. [27]

Technically I won't own bitcoins anymore, just tokens on the Xapo database that supposedly represent bitcoins. [4] No, first they will probably get rich with it then they will run both fiat and crypto parallel because killing bitcoin doesnt make fiat any better. [5] Bitcoin and a lot of crypto's have a place in the world and the economy, but simply thinking bitcoin can actually become the currency of a state or the globe will not happen. [4] A community dedicated to Bitcoin, the currency of the Internet. [4] This fact makes Bitcoin useless as a viable currency, they argue. [27]

A large percentage of Bitcoin enthusiasts are libertarians, though people of all political philosophies are welcome. [4] Bitcoin could become less volatile simply through long use establishing institutional trust, and artificial intelligence could smooth those shocks. [30] The other day I was helping a friend learn about bitcoin because he wanted to play online poker. [4] Online poker is actually a perfect example of why bitcoin could be useful. [4] That's why we are building this online universe revolving around anything and everything Bitcoin. [7]

Nobody can kill bitcoin because its based on a decentralized peer to peer transfer. [5] "Consumption" in Bitcoin is easy to criticize because it is obvious, whereas the hidden externalities of the traditional financial system are massive." [4] Almost all Bitcoin wallets rely on Bitcoin Core in one way or another. [4] Improvements here are the best way of rising to the Bitcoin challenge." [27]

Perfect for beginners, the Bitcoin.com Wallet makes using and holding bitcoins easy. [7] It doesn't need airbags because bitcoin is unlikely to have a high speed highway collision and it doesn't need FDIC coverage because the bitcoin isn't only in your wallet if you believe in it. [4] Most have taken tough stances towards Bitcoin and other cryptocurrencies, but as this Money20/20 panel demonstrates, the tide is certainly changing around the world. [6] Interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. [27] There are three things that fiat currency can offer that Bitcoin can't protection against structural deflation, the ability to act as a lender of last resort, and the "smooth the business cycle" in the event of unexpected shocks to the system. [30]

Bittrex, which has more than 3 million customers globally, is launching fiat trading on Thursday for Bitcoin, Tether and TrueUSD. The service will initially be available only to corporate customers in Washington, California, New York and Montana for regulatory reasons, but the firm said it plans to expand the offering to retail investors eventually. [29] Begging/asking for bitcoins is absolutely not allowed, no matter how badly you need the bitcoins. [4] The problem is that blockchain technology enables anonymity of those mining for Bitcoins. [27]

"Then there are the potentially existential threats that I just mentioned: blockchain, which some people believe could possibly end the banks' hegemony over stock clearing, and cryptocurrencies, which are the populist insurgents of the blockchain movement. [2] Four speakers from major central banks weigh in on cryptocurrencies midway through 2018. [6] A major take away from this topic is that central banks are beginning to change their tune towards cryptocurrencies. [6] A particular highlight of the Money20/20 Europe showpiece was a discussion panel titled " Cryptocurrency, the central (bank) question ". [6] He argues that they first thing that central banks should do is "strive to make fiat currencies better and more stable units of account." [30] The Volgelld Initiative issued a paper of proposed reforms, which includes a stipulation that private currencies will be permitted as long as they don't interfere with the mandate given to the central bank. [6] "Such central bank digital currency could be exchanged, peer to peer in a decentralized manner, much as crypto assets are," writes He. [30] Etheridge also revealed that the Bank of England issues electronic liabilities at the central bank in the form of reserve accounts. [6] It depends on the central bank, as long as they do a good job there is no reason for fiat currency to disappear." [6]

Throughout his early career as a forger, Abagnale forged checks to cash out money from big banks and financial institutions, committing bank fraud. [28] Ferguson said: "The financial system of today is not fundamentally that different than the financial system of the pre-crisis period, except that big banks are better capitalized. [7]

Could a cryptocurrency really spell the end of fiat currency? I think so. [6] I think it’s really showing that crypto is turning the corner in terms of mainstream acceptance. [29] Periodic promotional emails about new products, special offers or other information which we think you may find interesting using the contact details which you have provided. [30] "But if society starts questioning, rightly or wrongly, or it thinks what we are selling could be done better, in a more convenient and cheap way, other things will appear. [6]

Ding-dong DeflinGuy has probably never heard of fractional reserve banking when he talk about all the money they make up, and how that literally helps currency stay stable and not ridiculously volatile like Bitcoin. [10] The traditional banking and financial sector are heavily lacking in such innovations and are currently integrating concepts from Bitcoin and other Cryptocurrencies into their own arsenal in an effort to bring fresh innovation to a stale industry. [9] In light of the global financial crisis of 2008, the invention of Bitcoin and other cryptocurrencies has caused many to reassess the value of centralized banking institutions. [12]

There are some that argue that whoever controls the Bitcoin codes controls the centralization and this is partially correct but the fact is there are already many forks off Bitcoin and many other Cryptocurrency that have capabilities of inter-changing values like modern exchange rates which brings more variety and decentralization thus the argument that "whoever controls the code controls Bitcoin" is actually false on a closer inspection. [9] The current complains against Cryptocurrency have been played out of proportion as most arguments are actually flaws in earlier generation Cryptocurrencies like Bitcoin and this negative conception has been super-imposed onto all existing Cryptocurrency and demonized. [9] As a first-generation Cryptocurrency, Bitcoin made many mistakes and soon, these mistakes were corrected in later generations of Cryptocurrencies like IOTA and many others where the concept of mining was simply removed. [9]

The original idea was each user has their own Bitcoin Core client that has the ability to communicate with the network to transfer and receive funds as well as to mine transactions as a means of incentivising the usage of the network and keep nodes up and running because Bitcoin is essentially a Peer-to-Peer decentralized system and nodes have to be kept running to ensure payment transactions get verified on the Blockchain. [9] One of the gripes of Bitcoin is the inability to blacklist funds and hard forks and soft forks in the Bitcoin Blockchain has been used in the past to implement blacklists. [9]

However if Alice sends Bob a bitcoin, and they're both customers of the same exchange, it just adjusts their balances rather than doing anything on the blockchain. [9] It would not be secure for exchanges to move bitcoin around when customers buy and sell from their accounts. [9] The bitcoin exchanges are developing into a shadow banking system, which do not give their customers actual bitcoin but rather display a "balance" and allow them to transact with others. [9] What we do know is that most Bitcoin transactions are simply for the purchase and sale of bitcoins (currency exchange) - unfortunately, these are hard to weed out. [9] You are probably better burying cash in the backyard then buying bitcoin, just because the transaction costs will consume your money far faster than inflation. [9] The more that people use bitcoin as money, the more difficult it will be to use. [31] What's even funnier is people unironically calling fiat "monopoly money", as if Bitcoin has such a lofty pedigree. [10] If it did happen, Bitcoin users would essentially need to create a new protocol with new encryption, and give people the ability to migrate over. [9]

The Basel, Switzerland-based institution said cryptocurrencies such as Bitcoin suffer from "shortcomings" that would prevent the currency class from meeting the hype that surrounds it. [11] Each of the above sub-system has it's own duties to execute and the well thought out design of Cryptocurrencies derived from Bitcoin or emulating parts of Bitcoin have almost the same setup in general. [9] Cryptocurrencies Bitcoin and Ether are not securities, says the SEC -- a move that could impact their valuation. [32] Bitcoin Redux explains what's going wrong in the world of cryptocurrencies. [9]

Use things like gold, silver coin, and Bitcoin -- they cannot create these things from thin air. [10] Among the complaints in the article are that the currencies are too unstable, require too much electricity (Bitcoin miners currently use about as much electricity as Switzerland does ), and are too vulnerable to fraud to serve as a real store of value. [11] If you give someone who doesn't know how to use a tool properly, they would surely mess things up and this is the same regardless if credit cards or Bitcoins. [9]

The result of Bitcoin being labelled as environmentally unfriendly was due to Bitcoin as the first generation Cryptocurrency and hence, it made a lot of mistakes along it's development. [9] Some have suggested that this makes bitcoins not fungible --that is one bitcoin is not identical to another bitcoin, unlike one gallon of crude oil being identical to another gallon of crude oil--making bitcoin unworkable as a currency. [33] The IRS decided in March 2014, to treat bitcoin and other virtual currencies as property for tax purposes, not as currency. [33] This is something that will not be possible with Bitcoin, unless negative interest rates are introduced. in other words, the person who lends you the coins, will receive less in case of a currency deflation. [10] In the case of Bitcoin, its finite supply will only make the currency more valuable as usage becomes more ubiquitous. [12] To pay with Bitcoin, there is high risk due to currency fluctuation and you have to accept the potential loss. [9]

If everyones pensions and accounts are voided overnight, Bitcoin will from day to day become a monetary worldwide unoffical standard. [10] Due to most of the banking infrastructure since ancient times were built around a centralized authority, Bitcoin et. al. provided a whole new architecture where centralization is weaker. [9] It makes more sense when you realize that bitcoin is primarily used by criminals for things like ransomware and drug deals. [9] Bitcoin sounds like a good idea and keeps the Federal Reserve out of our lives and possibly could eliminate hyper-inflation such a Germany experienced before World War Two. [9] Bitcoin prices might be down and out, but the outlook for blockchain remains promising. [32] Bitcoin mining, the process of creating new units of the cryptocurrency, is notoriously a huge energy-suck. [31] Cryptocurrency already existed for sometime but became famous due to Bitcoin. [9]

If it's not bitcoin itself another crypto will eventually take place of fiat. [10] Collapse showed that flaws in the crypto system design allowed for diversion of Bitcoin which was thought to be impossible at inception. [9]

If two people are discussing bitcoin then you shouldn't shout "I wet the bed until I was 13", even though that is your truth. [10] Based on that, I'll stand by my estimate of a majority of bitcoins are being used for criminal activity. [9] Now, a poster has indicated the NSA may not only have used and abused Bitcoin but maybe helped invent Bitcoin. [9] Bitcoin is less secure when there are multiple transactions per private/public key pair. [9] In May 2014 the U.S. Securities and Exchange Commission (SEC) "warned about the hazards of bitcoin and other virtual currencies". [33] The U.S. Treasury's FinCEN was first, followed by the FBI in 2012, the General Accounting Office in 2013, as well as the government agencies testifying at the November 2013 U.S. Senate hearing on bitcoin, including the Department of Homeland Security, the Securities and Exchange Commission, the Office of the Attorney General. [33] It has been criticized by smaller companies to favor established institutions, and Chinese bitcoin exchanges have complained that the rules are "overly broad in its application outside the United States". [33] An exchange can take on greater responsibility, but that is the exchange, not bitcoin. [9]

Unlike the U.S. federal regulators it has gathered input from bitcoin supporters and the financial industry through public hearings and a comment period until October 21, 2014 to customize the rules. [33] Bitcoin is striking at the root and I doubt these snakes will give up their global fiat Ponzi monopoly so easily. [10] I don?t want to derail this tread but if the NSA is tracking Bitcoin users one would have second thoughts about using Bitcoin and ending up on some TLA's list of trouble makers. [9] Given that you have to practically go looking for things that allow Bitcoin payments, you have to ask who puts in that kind of effort. [9] The value of Bitcoin Cash and other derivatives of Bitcoin forks are shown to be picking up steam and have an increasing bigger community. [9] "The bitcoin protocol specifies that the reward for adding a block will be halved every 210,000 blocks (approximately every four years). [9] If you don't own the private key, you don't own the bitcoin. [9] Bitcoins and credit cards are about the same thing when it comes to security but I would say overall Bitcoin is much safer. [9]

CITI, Nasdaq, Standard Chartered, DBS Bank and many other traditional banking industries as well as MasterCard, VISA, AMEX, JCB and other payment industry players have also joint in the pitch to use Blockchain technologies in their products to make themselves more relevant. [9] The latest Mobile Banking news have recently reported that you could even open a legit bank account using simply a mobile device. [9] Seattle-based cryptocurrency exchange Bittrex Inc. has established a formal agreement with Signature Bank in New York to allow corporate clients in specific states to purchase virtual tokens using USD. The move is designed to increase the amount of institutional capital making its way through the crypto space. [13] This decision was later replicated by establishments like Chase and Bank of America, both of which implemented bans preventing customers from purchasing cryptocurrencies on major exchanges. [13] An account-based system, He notes, records the transfer of claims (transactions) in an account and requires a third party like a bank. [12] What happened was that the receiving bank sat all of three working days (straddling a weekend) on an electronic funds transfer before crediting the payee's account, even though my own account had been immediately debited by the originating bank, who signalled this to that bank in a payment batch the very same day. [9] As to my own problem, I learned that three days was indeed the maximum delay for executing a bank transfer under the previous provisions of the German Civil Code (675 BGB). [9]

He and the IMF conclude the following: "Central banks must maintain the public's trust in fiat currencies and stay in the game in a digital, sharing and decentralized service economy. [32] The Chinese mints and banks were part of a central imperial organisation and the sealed with the seal of the Imperial court before issuing the minted currencies. [9]

When it comes to transferring money, He argues that cryptocurrencies have an advantage over banks when it comes to speed, anonymity, and divisibility. [12] Just like a bank I can go get 100k loan and if I fail to pay it the bank doesnt go ok you didnt know here is your money back. [10] Nobody enjoys paying someone else to watch their hard earned money and be told when you can and cant use it etc. Remember when you actually went into a bank yeah that's gone now. [10] We were also pretty new to the idea that money was "simply a number" in the bank account crediting or debiting us. [9] Banks were also an odd thing in the ancient world in the West but the Chinese were quick to put national banking system in place before the Yuan dynasty where paper money was introduced to the West. [9] The CEOs of two major European banks have today emphasised how blockchain technology can revolutionise the banking industry. [34] Noble Bank International in San Juan, Puerto Rico, also took over banking duties for Bitfinex in 2017 after the exchange's relationship with Wells Fargo came to a sudden end. [13]

Unlike bank transfers, crypto asset transactions can be cleared and settled quickly without an intermediary. [12] I guess that these were conceived in the 30s or 50s, and banks just abused this facility to shave their pennies of interest, even as the transfers technology evolved from carting paper slips through clearing houses, to couriers carrying 7 or 9-track tapes in the wee hours of the night in Frankfurt/Main, to online transfers. [9]

RANKED SELECTED SOURCES(36 source documents arranged by frequency of occurrence in the above report)

1. (53) Regulating Bitcoin - Schneier on Security

2. (48) Does Bitcoin/Blockchain make sense for international money transfer?

3. (39) Why crypto wins : Bitcoin

4. (28) Top 5 Crypto Currencies To Invest in 2018 - Alex Fortin

5. (25) Money20/20 Review: Central Banks Closely Monitoring Crypto and Blockchain

6. (21) Bitcoin's time could be up: Are government-backed cryptocurrencies the next big thing? - Firstpost

7. (17) How Banks Will Help Make or Destroy Bitcoin (BTC) And Others

8. (17) Central Banks throw in the towel. : Bitcoin

9. (17) IMF: Crypto Assets Could Reduce Demand For Central Bank Money - Bitcoinist.com

10. (12) Cryptocurrencies Like Bitcoin: Is it Money or an Asset? | Startup Grind

11. (12) Global Government Banks Think They Should Take Over Cryptocurrency, Someday

12. (12) Crypto responds to the Bank of International Settlements bitcoin report - Business Insider

13. (12) Virtual currency - Wikipedia

14. (10) IMF: Bitcoin Could Render Central Banks Irrelevant | Finance Magnates

15. (9) Bittrex Lands Bank Agreement to Help Customers Buy Bitcoin With Dollars .

16. (9) Cryptocurrency Skeptic Jim Cramer Says Banks are Pressured by Digital Assets | CryptoSlate

17. (8) Are traders messing with the price of bitcoin? And why should you care? | 90.5 WESA

18. (8) 3 Reasons Why Amazon Will Choose Ripple (XRP) in 2018 | Oracle Times

19. (8) Are big banks going to kill Bitcoin? - Quora

20. (8) Niall Ferguson Tells Bank of England Bitcoin Is Financial System of the Future - Bitcoin News

21. (7) Bitcoin Today: Narrow Losses on Tap as Most Cryptos Move Lower - TheStreet

22. (7) Latest product and blockchain banking news - Bitwala Blog

23. (6) Whats the local cryptocurrency scene like? New conference aims to redefine that - seattlepi.com

24. (6) Blockchain Will be Adopted by Every Bank: Catch Me If You Can Forger

25. (6) Bittrex Gets Bank Agreement to Help You Buy Bitcoin With Dollars - Bloomberg

26. (6) Is Bitcoin Going to Crash the Internet? These Experts Think So.

27. (6) Bitcoin Daily: UK Firm Tests Ripples xRapid | PYMNTS.com

28. (5) Australian Central Bank Says Bitcoin "Fascinating" But Not Useful as Money - Cryptovest

29. (5) Major bank CEOs say blockchain will underpin the financial industry 'in five years'

30. (5) Bank of International Settlements says bitcoin is not a trustworthy currency

31. (4) Bitcoin Doesn't Work as Money, BIS Says in Damning Report | Fortune

32. (3) Best Bitcoin Wallets of 2018 - Tips to Buy With Credit Cards

33. (3) Bitcoin will be impossible to reflate into a bubble again - MarketWatch

34. (2) Swiss People Think Swiss Banks Are Swiss Banking Just Fine, Thanks | Dealbreaker

35. (2) A 'Digital' Run on the Bank?! How Crypto Will Take Over All Fiat Currencies (Part 1) CryptoCamacho.com

36. (1) CEOs of Two Major European Banks Say Blockchain Will Revolutionise Industry | CryptoGlobe

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