You might have asked which banks accept Bitcoin if you’re seeking for solutions to handle both your alternative and traditional currencies. Although some banks in the US permit you to buy Bitcoins using your bank account, the majority of US banks forbid clients from buying or exchanging any kind of cryptocurrency. That may soon change, though, since the government has enacted new regulations regarding digital currency. As bitcoin becomes more and more popular, banks are adapting by increasing their offerings. Read on to find out why banks refuse to accept bitcoin, how things are changing in the cryptocurrency world, and find out which banks are currently the most bitcoin-friendly.
Why Do Most Banks Refuse to Accept Bitcoin?
Currently, not a lot of traditional banks and financial institutions accept Bitcoin as a method of payment. In fact, a handful of major banks in the US such as Capital One and Bank of America prevent their bank users from using credit cards, wire transfers or ACH transactions to buy cryptocurrencies.
Because they consider the price of Bitcoin to be unstable and insecure, the majority of US banks have decided not to provide cryptocurrency services. Since Bitcoin is more secure and stable than quite a few conventional currencies, their worries about cryptocurrency price fluctuations and fraud threats are mostly unwarranted. The limited supply of Bitcoins in circulation prohibits money from being generated out of nothing, and the blockchain makes it exceedingly impossible for theft or money laundering to take place.
Additionally, unlike banks, outside parties cannot control Bitcoin or other cryptocurrencies. Decentralization reduces human and outside interference, which aids in removing biases. Banks, on the other hand, have a high degree of centralization, which allows them to decide things that affect their customers without getting their permission. While centralization isn’t always a negative thing, these systems are prone to human mistakes. This is even more so when greed is present.
However, because there were no government guidelines detailing the proper ways that banks should manage cryptocurrencies until relatively recently, the worries of US institutions are somewhat warranted. The OCC in the United States (Office of the Comptroller of Currency) oversees the operation of all national banks. A bank might possibly suffer substantial reputational and financial loss if it violates the OCC’s requirements. Many financial institutions and banks have avoided using alternative currencies for fear of getting into trouble since the OCC has been largely mute on the subject.
The Most Recent Federal Regulations Regarding Banks and Cryptocurrencies
US banks’ common opinion of Bitcoin and crypto may begin to shift shortly. National banks can now provide custodial assistance for cryptocurrencies, according to the OCC. This means that banks are allowed to keep consumer digital wallet codes on file. Bank users are now able to sell, buy, and keep cryptocurrencies in standard bank accounts in place of only being able to do so at a few select institutions. Banks are aware that Bitcoin will be a crucial component of the financial future as ownership of cryptocurrencies rises. And despite their worries, banks are starting to get on the cryptocurrency bandwagon to make sure they have a position in the future. Furthermore, banks are cognizant of the profitability of cryptocurrencies and want to increase their revenue.
The OCC’s announcement may have a significant influence on how alternative currencies are used in America going forward. Banks will probably feel more comfortable accepting Bitcoin transactions since there is legal precedence for how they can engage with cryptocurrency. With more people and companies adopting cryptocurrencies as a realistic choice, a nationwide acceptance of Bitcoin and various other cryptocurrencies is expected to have a positive ripple impact on society.
Which Banks Accept Bitcoin?
Even while we don’t yet fully understand what will happen down the road for banks and cryptocurrencies, things now seem promising. However, the majority of banks in the US do not yet provide services related to cryptocurrencies, and the banks that do only permit clients to use personal bank funds to purchase digital assets instead of storing them in electronic wallets.
Which banks now support Bitcoin, then? We’ve compiled a list!
Insurance plans, bank accounts and investment opportunities are just a few of the financial services managed by USAA. The first significant American bank to invest and show support for cryptocurrency exchanges was USAA. Whether you’re signed in via the USAA website or the USAA mobile app, it’s incredibly simple to log in and see your Coinbase transactions from a USAA account. Using USAA debit cards, bank wire payments, and bank transfers, members may also buy bitcoins. USAA is a fantastic choice for anyone searching for a conventional bank that accepts Bitcoin and various other financial and banking services.
Simple Bank is an FDIC-insured direct bank, which means it conducts all of its business online. To buy and sell Bitcoins, you may utilize a number of different cryptocurrency exchanges using Simple Bank. Members of Simple are able to purchase Bitcoins using either their debit cards or bank accounts. Simple’s main selling point, aside from its support of cryptocurrencies, is the seamless and user-friendly integration of banking services with online budgeting tools. If you want a bank that is crypto-friendly, allows you to manage your bank costs, and create a budget, you should pick Simple.
Another fully digital bank is Ally Bank, however, they provide round-the-clock customer care to ensure you always have the resources you require. There aren’t a lot of other banks that offer a 1% yearly percentage interest on savings, and they don’t charge any bank maintenance costs either. With an Ally Bank bank wire, debit card, or bank transfer, you can buy cryptocurrency. Your account may be easily linked to Coinbase using Ally to complete these transactions. Should you desire a bank that supports cryptocurrency and pays out a respectable rate of interest, Ally is definitely the one for you.
Blockchain technology for cryptocurrencies has completely changed the way we think about money by including decentralized systems, cheap costs, and a focus on privacy. Banks have been forced to put their reservations aside and serve their customers as a result of the rising demand for cryptocurrencies. As the world embraces the shift from physical to digital banking, it is wise to stay ahead of the curve to anticipate any changes in the cryptocurrency sphere. Remember, putting all your eggs in one basket is never the wisest choice. We hope this article has helped you decide how you want to manage your digital assets, and decide which bank you want to trust in holding your hard-earned money.