Cryptocurrency: Does Your Bank Support Bitcoin?
The world of finance and money has evolved a lot throughout the past few years. There are new ways to manage your money, better banking options, and even e-wallets.
Anyone who hasn’t been living under a rock in recent years definitely knows a few things about Cryptocurrency. Even though most people don’t understand cryptocurrency fully, they know it’s a type of currency.
Crypto is a type of digital currency that is accepted through computer networks and is not regulated or maintained by any central authority, like banks or governments. Cryptocurrencies like Bitcoin and Ethereum are virtual currencies that use cryptography for transactions.
Cryptocurrency can be revolutionizing for the world, changing the entire way how money is managed and its flow. A lot of transactions that people have made the past couple of years have been via bitcoin- the most well known form of cryptocurrency.
There are many advantages to cryptocurrency, with even the banking sectors acknowledging it as a form of legit currency. However, there are also some setbacks to crypto, like lack of regulation, ever-changing technology, etc.
How Did Bitcoin Emerge As A Feasible Cryptocurrency?
All currencies have a source or history. Bitcoin did not become a popular cryptocurrency without people giving it its value. This virtual form of currency has revolutionized money and trading worldwide.
Bitcoin’s network was created in 2009, and has gradually grown over the years with people investing in it. Irreversible transactions and cryptographically secure blockchain technologies have helped Bitcoin achieve its maximum value today.
The main feature of bitcoin that makes it very valuable is its limited supply and exponential demand.Bitcoin has enabled people to trade across borders and countries without any limits or regulations that strictly govern them.
This, in a way, creates a sort of equal-equal situation, where there are no different sets of rules regarding crypto for different countries.This has led to a boost in trading across countries, and there is an increase in economic activities.
Due to the same blockchain technology, crypto has enabled better control to entrepreneurs and more access to capital. Thus, Bitcoin has become so valuable over the years and can today be exchanged for real cash as well.
The term revolutionary is used for Bitcoin mostly because it is enabling developing countries to develop and elevate their economic statuses. Bitcoin is promising of an equitable economic future for most countries.
How Do Banks Support Bitcoin?
With the rapid increase in Bitcoin’s popularity and value, it doesn’t need to be said that banks were sooner or later going to test the crypto waters.
After Bitcoin stayed steady in value over time, many US banks have become welcoming to deal with the cryptocurrency, and have started offering services as well. Banks have started offering services such as cash exchanges, international transactions and even making Bitcoin loans.
As time progresses, more and more people can get onboard the idea of making bitcoin transactions and even using them in regular exchanges. Now you are also able to buy crypto directly from banks.
However, you also need to be careful with the kind of transactions you make, and with whom. A lot of organizations still do not deal with any form of Cryptocurrencies, and don’t consider them legit.
Why Don’t All Banks Support Bitcoin?
Ever since the advent of Bitcoin, banks have not been outrightly accepting of the cryptocurrency. Most banks view cryptocurrencies as a form of opposition or enemy, instead of a currency that they can deal with.
The financial system is designed in such a way that banks and other authorities like the government are given power. Most countries depend on a pre-designed financial infrastructure that is responsible for their economies as well.
Since Bitcoin takes away the central feature of these banks and the financial system- control, most banks simply don’t want to deal with Bitcoin.
However, with better technology and more trading firms invested in crypto, banks are starting to come around and support bitcoin as a legal tender.
Which Banks In The USA Support Bitcoin?
There are a number of banks in the USA that are crypto-friendly. They deal with Bitcoin, and some also offer specialized services for the same. Here is a list of some of the US banks that allow Bitcoin transactions and exchanges:
● Quontic: A New-York based digital bank, Quontic offers Bitcoin Rewards checking accounts for its customers. For every eligible debit card purchase, they allow 1.5% Bitcoin.
● Tangerine Bank: Owned by ScotiaBank, Tangerine is a Canadian online bank that also allows customers to trade in Bitcoins.
● Morgan Stanley: Morgan Stanley has started offering its affluent clients access to Bitcoin-related funds.
● Goldman Sachs: Goldman Sachs allows the trading of Bitcoin futures, along with offering access to Ethereum funds issued by Galaxy Digital to interested clients.
● JPMorgan Chase: JPMorgan also launched a Bitcoin fund that is available to all their wealth management clients.
Is Bitcoin Going To Be The Future?
With most banks gradually coming around to see Crypto as a legit form of currency, it might not be too far-fetched to say that crypto could become the future of currency.
However, it is also important to note that in a lot of places, crypto is legally banned or considered illegal. For Bitcoin or other forms of crypto to become universal, they have to be first accepted as a legal currency everywhere.
There is also a need for proper regulations around crypto. Since most people who have invested in crypto are largely unprotected due to the lack of laws surrounding crypto.
Conclusion
Cryptocurrency started out as a way to make financial transactions and trade without relying on governments or on any regulating authority. Bitcoin is the first cryptocurrency to ever exist, and has the potential to change how money is viewed across the world.
With more and more banks becoming open to accepting crypto, it is possible that bitcoin might replace the old system of money and finance. In the USA, more and more banks are allowing Bitcoin-related services and transactions.
However, since there is little to no regulation regarding crypto, investors are largely unprotected. A firm regulatory body that regulates the movements of Bitcoin are required to ensure that investors’ assets are protected.