Bitcoin friendly banks and their first steps towards the future

Bitcoin friendly banks and their first steps towards the future

Many experts believe that the cryptocurrency is a threat to the banking system, but the very existence of bitcoin friendly banks disproves this idea. How can virtual assets and traditional financial institutions not only exist in the same environment, but also remain mutually beneficial? To begin with, it is necessary to consider the basic principles of such cooperation, and after examples of banks that willingly support innovation.

Table of content:
- How do banks and cryptomoney interact?
- Traditional banks that deal with cryptocurrencies nowadays
- Conclusion: future belongs to the courageous
 
Features of banks and crypto interaction
 
The banking system plays an important role in our life. Banks are needed by the state, enterprises, companies and every person. This cooperation is mutually advantageous and has been lasting for many centuries. The launch of bitcoin and its growing popularity could not but worry the banking sector. Bitcoin economics pretends to become competing or completely replace the system that has been working for centuries. How will the cryptocurrency affect banks?

Balance between risks and profit
 
One of the peculiarities of all banks is the search for opportunities to avoid risks. These structures balance between making a profit and providing loans. The small amount of loans made in the cryptocurrency world does not compare with operations performed in banks. An interesting idea was given by the co-owner of the company Tinkercoin (Canada). He believes that banks are conservative; therefore they are not in a hurry to unite with the crypto-currency business. So the profit that can be obtained from such cooperation is able to cause significant losses.
 
Credit cards are one of the “soft spot” of the banking environment. Fraud is very real, and companies that handle processing can complicate their work if they agree to accept bitcoin as a payment system. So recently, Tinkercoin offered cooperation to the issuer of credit cards and was refused. The reason is the risk of fraud. Not all large structures entrust bitcoin and other cryptocurrencies, and they see high risks and functional inconsistency with existing norms in the implementation of these directions.
 
Business and cryptocurrency
 
Bitcoin is positioned as a fully independent and decentralized monetary unit. What about financial rules? They are necessary, and bitcoin companies have to follow them anyway. Without this important condition, cooperation with banks is unlikely. CEO of Coinsetter company, which is a cryptocurrency trading platform and
still represented in the beta version, during numerous negotiations confidently agreed that only accordance with the regulations will help the cryptocurrency become a full participant in the financial market.
 
Coinsetter plans to implement various investment methods, and margin trading is among them. The CEO gave a comment about this. He believes that exchange platforms will be able to work if AML programs are offered, after which it is possible to organize negotiations with banks. It guarantees that the crypto will take its rightful place in the overall financial structure. Many agreed that it is the best option for the cryptocurrency business, because if you do not follow the rules from the very beginning, then there is a risk to quickly quit the game without becoming a participant.
 
Guarantees of the stable work
 
Many players of the crypto market faced downtimes on the digital platforms. Within a few hours the trading was simply not processed, which greatly whipped up the atmosphere and caused heavy losses. In April 2013, the service Mt.Gox hadn’t been working for 12 hours. BTC support must be guaranteed and stable; otherwise banks will not agree to the full-fledged cooperation. CEO of consulting agency Knowledge Capital believes that financiers will have to work with decentralized assets. The main thing is that bitcoin received a legal status, only then we can talk about the direct participation of credit card issuers and payment systems.
 
Way out for banks
 
In order for BTC loans to enter the list of financial services, some time is needed. Traditionally, any changes especially such fundamental ones as the introduction of bitcoin into the banking sector are slow and gradual. The proportion of risks and profits here is the reason, and it has already been noticed above. Banks cannot run experiments, because it is fraught with malfunctions in their work and, therefore, financial losses.
 
Will the changes be painful for banks? There are two courses that will allow you to adapt to the new realities faster. First, banks can gradually change the financial technologies associated with digital money, allocating them initially in a separate direction. The second way is to implement bitcoin at once, but for this you need guarantees and widespread legalization of the cryptocoin. In any case, each bank will choose the best option for itself, but only after careful analysis and risk assessment by experts.
 
Top-list of Bitcoin friendly banks
 
While other banks see bitcoin and the blockchain as a threat, a number of financial organizations have started their active cooperation with the cryptocurrency. Among them there are several well-known banks with a worldwide reputation:
 
UBS
 
Switzerland is one of the first countries in the world that entrust BTC. Moreover
you can get a pre ICO license here. The Swiss bank UBS opens a department that will investigate the blockchain and, based on the results of its work, will introduce the cryptocurrency into its structure.
 
Citi Bank
 
One of the largest banks in the world, Citi Bank, sees the future in the public register. Now, on the basis of it, 3 test blockchain schemes and Citicoin cryptocurrency have been created. In real transactions, they are not used, but the institution is going to involve the innovation into the international transactions system.
 
Standard Chartered
 
Standard Chartered is also a large bank that is actively interested in cryptocurrency and the blockchain. The founders of the bank are sure that the new technologies allow guaranteeing the transparency of transactions, shorten the time for their conducting and the cost for all participants.
 
 
BNP Paribas
 
The French financial institution sees in bitcoin not just a convenient payment system, but is also going to make it a share of its currency fund. Cryptocurrency is an object of constant tests, and bank experts are investigating the blockchain and its additional opportunities.
 
Société Générale
 
Société Générale is another bank headquartered in France. Recently, the institution was looking for a specialist in the IT field, who knows the blockchain technology. An employee is required to work in the office in London, and his or her job is to study cryptocurrencies and their prospects.
 
Barclays
 
The bank decided to cooperate with the Safello exchange. The goal of the cooperation is the creation of a service that could receive donations in bitcoins. The British bank has been working with organizations that deal with electronic assets for several months.
 
BNY Mellon
 
Bank BNY Mellon sees in the crypto the prospect of the development of the financial sector. The institution develops applications for operations with bitcoins for internal needs. Employees of the company will receive their awards in the digital money, and it will happen in the nearest future.
 
Conclusion
 
So, we see that bitcoin friendly banks do not only exist, but there also are well-known financial institutions among them. Despite all the difficulties, that at the moment are a stumbling block for the introduction of crypto in the traditional financial sphere, many companies are going to meet innovations and are not afraid of changes and challenges.



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