Why are banks afraid of Bitcoin and cryptocurrencies?
Banks dislike digital currency and decentralisation in general. There are a few valid reasons why not all banks will accept bitcoin and other cryptocurrencies.
Because of the inherent volatility of Bitcoin, banks are hesitant to engage with it. Banks are in business to make money. They don’t want the value of all their assets, or the worth of their customers’ investments, to vanish overnight because of a minor fluctuation in the bitcoin market.
There are currently stringent rules in place for dealing with electronic money, and as the globe warms to cryptocurrencies, these regulations will get increasingly stricter in the coming years. Even for banks who are interested in doing something in this regard, the lack of regulation makes it challenging.
Some large financial institutions still consider crypto transactions to be extremely dangerous, if not unlawful.
On the other hand, there are a number of forward-thinking institutions that want to follow new trends and assist their customers with cryptocurrency transactions.
Wirex, established in the United Kingdom, is one of the top crypto-friendly financial services, allowing users to purchase and trade cryptocurrency. Wirex provides a variety of perks to its users, including a 0.5 percent payback in BTC.
Wirex accounts come with a linked debit card that may be used in more than a dozen countries across the world. The card and account have the same appearance as a conventional UK bank card, including an account number and sort code that have been registered with the UK Financial Conduct Authority.
USAA has invested over $150 million in Coinbase over the last few years, making it easy for its clients to interact with the world’s largest bitcoin exchange.
Customers may track their bitcoin wallets on Coinbase using their USAA account. They can also use Coinbase to track all of their transactions, check balances, and link their bank accounts. This bank is constantly updating its financial structure in order to become one of the greatest crypto-friendly banks in the United States.
Barclays is an early adopter of blockchain technology, allowing their customers to execute crypto transactions in a safe and secure environment. Cryptocurrency can be purchased with Barclays credit and debit cards. There are a few conditions to these transactions, but they are generally very simple to complete.
Ally Bank is designed specifically for customers in the United States who want to combine traditional banking with cryptocurrency. This bank is governed by US laws and handles several of the world’s top bitcoin exchanges, including Coinbase. Unlike many large commercial banks, Ally allows users to buy Bitcoin and other cryptocurrencies with their Ally debit or credit card. They also enable for seamless and straightforward crypto purchases via wire transfer.
Simple Bank began as a cutting-edge Fintech venture. It has since grown into one of the greatest FDIC-backed/insured banks for Americans.
This bank, based in Oregon, has collaborated with a number of cryptocurrency exchanges, making it one of the most crypto-friendly institutions in the United States.
Customers of Simple Bank can conduct direct buy-sell transactions. This bank supports prominent cryptos such as Bitcoin, Ethereum, Ripple, Litecoin, and others in order to create a global cryptocurrency network.
This German-based firm, which is known for delivering an assortment of APIs for digital banking to industry heavyweights like Samsung, is now offering unrivalled fiat-to-crypto trading and quick settlement in its trading solution.
This was made feasible by its collaboration with Bitstamp, a Luxembourg-based exchange. This bank believes that allowing fast crypto-to-fiat conversions is a good method to minimise fraud and ensure that crypto aficionados enjoy a smooth trading experience.
National Bank Of Canada
The National Bank of Canada, headquartered in Montreal, is the country’s sixth-largest bank. It has over 2.4 million clients and several companies around the United States.
The National Bank of Canada, despite being one of the world’s largest financial institutions, is one of the few banks that has maintained a strong relationship with crypto companies.
Goldman Sachs is one of the most crypto-friendly institutions on the market, despite being over a century old. This offers it a competitive advantage. Goldman Sachs didn’t back down when the other banks did, and it’s now one of the most attractive institutions for crypto traders and investors.
Revolut began as an unlicensed financial organisation in the United Kingdom, but it has since grown to become a full-fledged bank with more than 2 million customers. People in the United Kingdom and Europe can use their services.
Revolut is well-known for allowing consumers and businesses to use their bank accounts to transact in cryptocurrency. Crypto transactions are supported by all three categories of accounts (standard, premium, and metal) and are available to customers in the European Economic Area (EEA). However, we suggest that you check all the available details with Revoult.
Change Bank is quite open about its cryptocurrency activities, particularly with Bitcoin. Their consumer marketing emphasizes the ability to purchase, sell, and exchange Bitcoin at the best possible rates. They allow their consumers to make these purchases using their credit cards.
Change also makes it simple to start an account with a small initial investment.
Traditional banks are likely to offer crypto-related services in the future, especially if more regulatory clarity becomes available.
We suggest that you check the bank before taking a decision. With some banks not being interested the list could be updated. Several government’s too are not encouraging crypto currency trade. Against the backdrop some banks may not offer the crypto currency facilities.