Why Banks Aren’t Banking Your Crypto Start-Up

Down with the banks, up with Bitcoin!


“Your bank, no matter how neo or how challenger, can’t bank Bitcoin (BTC). They could bank blockchain companies, adding value and providing services for the space, which would be good for both the bank and the clients, but they are afraid of repercussions from regulators and their partners.

Since many smaller banks use ‘correspondent banks,’ whose direct access to the Federal Reserve system’s FedWire and other official payment rails they leverage, they can’t make the decision to accept Bitcoin clients in a vacuum. They must consider their correspondents (generally, big banks), who don’t want their partners working with crypto — a classic underbanked industry.”



Master Asked on February 28, 2020 in Cryptocurrency.
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