Post
Topic
Board Bitcoin Discussion
Re: Could the bitcoin community start its own bank?
by
Bizmark13
on 08/01/2015, 02:22:03 UTC
Just wondering what would be involved in founding a new bank that's friendly towards the interests of bitcoiners. Of course you'd still be dealing with the problems of having to trust a bank, but at least it would be better than trusting the big banks that are always closing bitcoin-related accounts. I'm just talking about a bank that would be willing to open business accounts for bitcoin traders, and where you wouldn't have to worry about telling them you're using your account for buying and/or selling cryptos.

How much capital would it take to start a small bank or credit union along these lines? Which country would it make sense to try it in, if any?

wasn't bitcoin started so that we wouldn't have a bank?

I think the OP is talking about traditional fiat-based banks that are friendly towards the interests of Bitcoin traders but don't directly deal with Bitcoin itself. While Bitcoin is supposed to eliminate the need for banks (an idea which I disagree with if Bitcoin is ever to become mainstream), those traders and businesses that deal with both fiat and BTC will require a traditional bank to process fiat transactions. Many banks today are unfriendly towards Bitcoin traders and Bitcoin-based businesses and will shut down their accounts if they see the word "Bitcoin" being mentioned too much.

For example, I know a very popular LocalBitcoins trader who lives in New Zealand. He buys BTC from exchanges and sells it to people via LocalBitcoins in exchange for fiat. He has had two bank accounts (BNZ and ANZ) shut down recently because of Bitcoin-related activity and he recommends those who deal with him from not mentioning the word "Bitcoin" when sending money. This is because the banks don't like Bitcoin and are scared of it. A Bitcoin-friendly bank would easily remedy this situation.