Bitcoin is becoming more and more popular, so it was only a matter of time before banks started accepting the currency. There are still some that want nothing to do with cryptocurrency in any way, while others are looking at the big picture and what the future holds.
What banks are friendly to Bitcoin businesses?
Those people who are really into using Bitcoin on a consistent basis tend to look for any type of bank out there that at least somewhat accept cryptocurrency. They obviously are going to have some limitations, but at the very least they will all allow for Bitcoin transactions in the United States. They understand the times are changing, and enough of their customers are looking for this type of support.
For many people who have dealt with cryptocurrency for a while now, Simple bank is the best of the best when it comes to handling this new type of currency. Maybe it comes down to the fact that they are entirely based online, and therefore they have a true eye on the future.
They work directly with a few different Bitcoin exchange websites, and a person can do as many buy/sell transactions as they want. Everything involved in the bank can be checked online through their website, or through a mobile app.
The only downfall right now is that simple bank is available to United States citizens only. It also only works within the borders of the United States. International users are hoping for that to change in the future, but there are still plenty of hurdles to jump as far as that is concerned.
This bank is officially partnered with Coinbase, so right away people know that they are Bitcoin friendly. A person can directly check their balance in Bitcoin on the mobile app, and even invest.
They are the very first major bank to invest in the exchange, which is huge for the overall growth. Those unfamiliar with Coinbase should know that it is a website where a person can buy and sell many types of cryptocurrencys.
It is important to know that traditional money needs to be used for these transactions. A person cannot just operate with Bitcoin when using the services provided by USAA.
This is another bank that operates online only, and they allow a person to link their bank account at Coinbase if they wish. It is a really great place to sign up for a brand new bank account if a person is looking for some assistance. Some people do not really know where to begin if they are heavily into cryptocurrency, but Ally truly lives up to its name by excepting this option.
Some people worry about using an online only bank like this. There really should not be much to worry about, as they offer support around the clock and an online chat feature for people to use at any time.
Out of all the friendly options for cryptocurrency users, Goldman Sachs is the most storied name of them all. They have been at the forefront on Wall Street as far as cryptocurrency trading is concerned. They have developed a trade desk and other products for people to use, satisfying their customers and hoping that consumer trust can be held.
They are still treading lightly as far as building out cryptocurrency options, but it is great to see that a respected name like this is really starting to open up. A lot of it comes down to just learning about cryptocurrency in general. They are still feeling things out and hoping to set up a few different options, so for now going with one of the other three banks might be the best way to go. If a person does have an existing account with Goldman Sachs, it is something to monitor for the future. They might be one of the best Bitcoin friendly banks in the US in a year or two if they continue to push towards learning about what the future holds for something like this.
What banks are hostile to Bitcoin investors and businesses?
Listed above are a number of banks that really seem to be accepting of Bitcoin. Unfortunately, it is still a relatively small list. That is because some of the biggest banks in the world are still looking at cryptocurrency as a bad thing overall. They have gone as far as banning credit card purchases for any type of cryptocurrency.
One way around it for some is to look at wire transfers as a workaround. It does not always work, but most banks seem to not really care about looking into that too much. It is more of a “do at your own risk” type of thing, but many have had success.
Top Banks for Bitcoin Retail Investors and Traders
Retail investors and traders dealing with Bitcoin are always looking for banks that can be very trustworthy. The problem is, it can be pretty difficult to find banks that are actually willing to work with people who rely heavily on Bitcoin. It is still pretty unstable in the eyes of banks, and of course it is viewed as a challenger to the current currency set up. Seeing current currency take a hit is not good for a bank’s general business.
What banks are figuring out is that they do need to start thinking about catering towards investors and traders, because they are starting to lose their overall interest. If they do not keep their consumers happy, the bank can really start to struggle and falter. Nobody in the business of making money is going to want something like that, so even the bigger banks are starting to realize that cryptocurrency is a thing that needs to be monitored, whether they like it or not.
The best thing for investors and traders is to stick with the Bitcoin friendly options for now. There is just too much on the line to deal with some of the other banks who might start to put restrictions on an account if they see a lot of Bitcoin activity. When there is a lot of money tied up in something like that, it needs to be dealt with properly, or there could be a lot of complications down the road.
Investors in general have gone through some trying times in the last few years as far as cryptocurrency is concerned. During its peak in late 2017, everyone was looking into cryptocurrency and wondering about investment opportunities. Since then, the value has depth, but investors are still staying strong and holding out for the long haul.
Finding a bank that is trustworthy and willing to understand a little bit more about Bitcoin is going to be the best option. Otherwise, it just does not make sense to even use a bank in the first place. Staying away from them will allow a person to not have to constantly worry if they will have an account shut down.
Do banks accept Bitcoin?
At this point in time, a person just can’t simply put Bitcoin into their bank account. If a person wants to actually pay for something with a cryptocurrency, the bank is not really going to help with this.
When a bank is considered Bitcoin friendly, that does not mean they directly deal with Bitcoin. They are just more open to a person using crypto exchanges or some other intermediary it will help with the conversion of bitcoin to the local currency.
In an ideal world for those people who are into bitcoin, banks would not even be needed in the future. That is because cryptocurrency at its core is supposed to get rid of the need for in authority in charge of money in a country. Having to rely on a bank goes against that.
Technically speaking, there is one way to have the bank possess Bitcoin. Since the key to a wallet can be put in a safe deposit box, the bank is helping to protect the currency. Some people will use a safe deposit box to either store the key that is printed on paper, or saved on a memory device. Digital storage is always important, and that is especially true if a person has a lot of valuable Bitcoin in their possession.
Down the road, there is always a chance things change. As for now though, Bitcoin and banks don’t exactly have a perfect relationship, even with the friendliest options out there.
Arnold Webb received a Masters Degree in Computer Science from Harvard University. Arnold currently is a full-time researcher and trader in the cryptocurrency industry. Arnold contributes content to CryptoCelebrities.co, The Bitcoin Magazine and several other publications.