- Bitcoins must be designated as "not illegal" so that institutions such as banks will accept them.
Irrelevant.... first whom would give such a designation? If BTC becomes prevalent, banks will accept them. But I am curious as to why you would put them in the "Bank" ( a centralized institution for control and protection of money). The whole purpose it that "Banks" would be useless other than for storing tangible objects.
But if you insist, I will hold onto your BTC and be your "Bank".... and loan out your BTC and the whole mess starts again...