Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

The number of banks willing to do business with the crypto industry is shrinking

barrons.com

Post reply on HN
Print view View original

81–90 of 362 posts

Re: The number of banks willing to do business with the crypto industry is shrinking

#81

Post by bufferoverflow »

willhslade wrote: post #41
givemeethekeys wrote: post #9

If I were a bank, I'd stay far away from any non-bitcoin cryptos that I'm not an issuer of. Why would I want to own a coin that someone else is able to freely devalue, in addition to conventional currencies? On the other hand, if I were a bank, bitcoin presents a compelling argument. The supply is finite. Disclaimer: I don't own any crypto or bitcoin.

Water is finite

Not in any practical sense. There's enough water in the universe to have a whole private solar system made entirely out of water for every single human.

Re: The number of banks willing to do business with the crypto industry is shrinking

#82

Post by tnel77 »

toinewx wrote: post #72
givemeethekeys wrote: post #9

If I were a bank, I'd stay far away from any non-bitcoin cryptos that I'm not an issuer of. Why would I want to own a coin that someone else is able to freely devalue, in addition to conventional currencies? On the other hand, if I were a bank, bitcoin presents a compelling argument. The supply is finite. Disclaimer: I don't own any crypto or bitcoin.

> The supply is finite Until It isn't. Miners will one day decide to hardfork bitcoin to increases the mining rewards, hence increasing the supply. They will of course need to prepare the narrative, and say "it is for the good of bitcoin". It might be in 10 years, or in 50 years. But on a long enough time-scale, you can be sure of one thing: Bitcoin will change, because it's man-made and because it's mutable/forkable…

Has that worked in the past? While they could obviously create their own fork, they can’t force people to actually use it.

Re: The number of banks willing to do business with the crypto industry is shrinking

#83

Post by rurp »

wruza wrote: post #13

A worrisome title. https://www.businesswire.com/news/home/20230109005186/en/ The Company expects minimal financial impact from the exit of this vertical. MCB currently has four active institutional crypto-asset related clients that in the aggregate currently account for approximately 1.5% of total revenues and 6% of total deposits. MCB’s relationships with these clients are limited to providing debit card, payment an…

A few years ago crypto often had large jumps from deals like these, not so much because of the immediate affect but more because it implied much larger growth was on the horizon. That seemed reasonable at the time, and the reverse seems reasonable now.

If large financial institutions don't want to touch crypto, that severly limits the foreseeable upside for the industry.

Re: The number of banks willing to do business with the crypto industry is shrinking

#84

Post by toinewx »

tnel77 wrote: post #82
toinewx wrote: post #72

Earlier quoted context omitted.

> The supply is finite Until It isn't. Miners will one day decide to hardfork bitcoin to increases the mining rewards, hence increasing the supply. They will of course need to prepare the narrative, and say "it is for the good of bitcoin". It might be in 10 years, or in 50 years. But on a long enough time-scale, you can be sure of one thing: Bitcoin will change, because it's man-made and because it's mutable/forkable…

Has that worked in the past? While they could obviously create their own fork, they can’t force people to actually use it.

[flagged]

Re: The number of banks willing to do business with the crypto industry is shrinking

#85

Post by gerdesj »

Canada wrote: post #47
gerdesj wrote: post #30

I minted nearly 1 BTC rather a lot of years ago and it vanished with a Pentium II to III upgrade (or similar). Oh well! I probably ran up £5 of 'leccy back then minting it. I probably spent more on Folding@Home and the like. For me the ledgers/blockchains and provability things are important but trying to fennangle a "value" out of thin air is a step too far. Even if that step involves a Norway MW Year. Eventually so…

> I minted nearly 1 BTC rather a lot of years ago and it vanished with a Pentium II to III upgrade (or similar). How did you do that?

I idly played with BTC one evening and I let it mine for about a week or so on a fairly poky PC and got bored of it eventually. I was more interested in Folding@Home.

As it turns out I was both right and wrong. That BTC was going to be worth up to $64,000 at one point in time. However, protein folding might save lives.

I ditched that PC and didn't copy over the wallet because I'd forgotten about it - it wasn't that important. I am very aware now that it would probably be a good idea to back up things like that 8)

Re: The number of banks willing to do business with the crypto industry is shrinking

#86

Post by root_axis »

Octokiddie wrote: post #61

> The problem, in a nutshell, is that for Bitcoin and other digital assets to have any chance of becoming mainstream, banks—with their access to deep sources of liquidity and experience in facilitating payments—will have to be on board. For the time being, they’re running in the opposite direction. What does Bitcoin "becoming mainstream" look like specifically? The article doesn't offer anything - not even a link. Le…

Bitcoin already went mainstream; everyone who cares has heard all about bitcoin for years now, it's permeated pop culture, referenced in TV, movies, music, even superbowl ads - we've reached peak bitcoin saturation. The problem for cryptocurrencies is that that they just aren't very useful to the masses, thus the vision of "mainstream" as imagined with desktop PCs will never happen for bitcoin - what we have today is basically all bitcoin will ever be.

Re: The number of banks willing to do business with the crypto industry is shrinking

#87

Post by danaris »

TedDoesntTalk wrote: post #68
Octokiddie wrote: post #61

> The problem, in a nutshell, is that for Bitcoin and other digital assets to have any chance of becoming mainstream, banks—with their access to deep sources of liquidity and experience in facilitating payments—will have to be on board. For the time being, they’re running in the opposite direction. What does Bitcoin "becoming mainstream" look like specifically? The article doesn't offer anything - not even a link. Le…

> What does Bitcoin "becoming mainstream" look like specifically? Just like your desktop computer analogy, it looks like Grandma using Bitcoin in an everyday, mundane way like paying the electric bill.

...which was so very obviously never going to happen.

Re: The number of banks willing to do business with the crypto industry is shrinking

#89

Post by markhuggins »

rufusroflpunch wrote: post #38

I don’t think this one example they provided is indicative. Didn’t the BIS just give their okay for banks to hold 2% of reserves in Bitcoin? Also, didn’t FASB just change their accounting rules to make businesses holding crypto easier on the balance sheet? Presumably demand is going in the opposite direction that this blurb would indicate.

A quick read seems to me to state that no, the Basel crowd did not give banks an OK to hold 2% in Bitcoin. On the contrary they've added a new rule that states it needs to be BIS (https://www.bis.org/bcbs/publ/d545.pdf) This states that banks should in the normal course of business hold less than 1% and must report anything higher, 2% is when an additional 'penalty' applies.

Re: The number of banks willing to do business with the crypto industry is shrinking

#90

Post by joedavison »

rufusroflpunch wrote: post #38

I don’t think this one example they provided is indicative. Didn’t the BIS just give their okay for banks to hold 2% of reserves in Bitcoin? Also, didn’t FASB just change their accounting rules to make businesses holding crypto easier on the balance sheet? Presumably demand is going in the opposite direction that this blurb would indicate.

The story about BIS authorizing banks to hold 2% of reserves in Bitcoin was dramatically misreported. This was actually placing a limit on their holdings, to 2%, which is down from no limit previously.
Post reply on HN