Banks, divided on the the future of cryptocurrencies

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We are still working on building a popular consensus on cryptocurrencies all over the world. Getting everyone on the same page on a diverse matter like cryptocurrency is definitely going to take some while but in the meantime, the positives that keep coming are also worthy of our notice. During our recent work & research, we came to know the different opinions of different banks all over the world. Different countries have different opinions so far. A nation’s policy sets the tone for its banks to layout the matching regulations for the citizens. Depending on the discussion and talks happening in the concerned ministry, the banks also set their policies. While there are countries which have welcomed the use of cryptocurrencies with open arms, there are others which have a more strict stance on the same.  

 

 

Fidor bank is a digital bank founded by Germany in 2009 that seeks to modernize banking by providing users with digital options tailored to their needs. Fidor’s CEO Matthias Kröner said that ultimately, the goal of the partnership is to create a “marketplace” for digital currency services, which will include mechanisms for trading, payment and currency exchange. The main aim of Fidor Bank to welcome the use of cryptocurrency is to avoid the delays involved in exchange transactions. There is a separate account for every account holder in the bank, which is known as “Fidor Smart Giro Account”, with the help of which any account holder can send & receive cryptocurrencies to another Fidor Smart Giro Account holder.

Apart from this benefit Fidor bank has its own fintech community website which uses cryptocurrencies for all its works & are inviting developers to become a part of the innovative world by using cryptocurrency.

 

There are plenty more such banks which have chosen to keep a positive approach on this matter.

  • Change bank, which is a truly decentralized crypto bank.
  • Worldcore, Czech based bank launched in 2015
  • Bankera, launched by the UK, is an operational fork for SpectroCoin

 

However, the sun is not so bright on the other side. The other side of the coin speaks a slightly different story. Apart from the positive responses from some banks, there are other banks which have a more skeptical vision for the cryptocurrencies. These are some banks which ban or blocks the cryptocurrency transactions.

 

  • US-based Bank of America.
  • Citigroup Bank.
  • JP Morgan bank.
  • Capital One Bank.
  • UK-based Lloyd group of Banks
  • Indian-based bans such as Axis Bank, HDFC Bank, ICICI Bank, Yes Bank.

 

Different banks have a different reason to ban on the use of cryptocurrency. These banks have been against the concept of cryptocurrency. Majorly, the reason behind the ban of cryptocurrency transactions is said to be customer’s security. Recently, the senior dignitaries of HDFC Bank have mentioned that  “To ensure our customer’s security, we have decided to not permit usage of HDFC Bank Credit, Debit and Prepaid Cards towards purchase or trading of such Bitcoins, cryptocurrencies and virtual currencies, on merchants suspected to be dealing in cryptocurrency or online foreign exchange trading or both,”.

Perhaps, while these banks claim to be saving their customers from probable financial loss by limiting their exposure to cryptocurrency but here lies the biggest question: Should any bank be allowed to control one’s transaction when it has already approved user’s account? Well, the answer to this is not a simple one. We will have to wait and watch for the upcoming trends in this market. Until then, it would be safe to say that there is a polarization of opinions on cryptocurrency for now but we must also acknowledge the fact that with each passing day, acceptance is increasing and the denials are reducing.




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