Cryptocurrencies have faced challenges from banks and regulatory bodies over the past few years. However, some of the banks have taken a more favorable stance towards cryptocurrencies and offer crypto-related services to their clients.
The threat of crypto to banks
It is a well-known fact that banks have not taken well towards cryptocurrencies. The digital currencies go against everything banks stand for, and they are a direct competition to the fiat currencies used by banks. The situation was critical at a certain point that some major banks across the world such as JPMorgan Chase banned its customers from purchasing cryptocurrencies using their credit/debit cards.
The banks believed that there is a perceived risk of fraud and money laundering associated with cryptos. Thus, they imposed some sanctions, such as the closure of any crypto-related bank account. While most people saw cryptocurrencies as investment vehicles, banks realized earlier on that cryptos are an existential threat to them. Thus, the reason why the major banks in the US, Canada, Australia, and more banned people from using their credit/debit cards to purchase Bitcoin and other cryptocurrencies.
However, despite the pressure from banks, the number of businesses and individuals using cryptocurrencies kept increasing. The increasing number of businesses and people adopting cryptocurrencies as a means of payment has seen more banks take a more friendly approach towards cryptocurrencies.
Banks are now catching up to the blockchain technology, with most of them admitting that the traditional banking system has been left behind, thus the reason why they feel threatened by cryptocurrencies. However, some of those banks now have cryptocurrency-dedicated sections, allowing people to transact using cryptocurrencies. We will look at some of the banks that are not afraid to deal with cryptocurrencies.
Crypto friendly banks
The cryptocurrency-friendly banks offer crypto services to millions of people around the globe, offering their clients various Bitcoin trading services. Here are some of the popular cryptocurrency-friendly banks.
Most of the leading traditional and investment banks have stayed away from cryptocurrencies over the past few years, but not Goldman Sachs. The bank is perhaps the most famous bank that supports cryptocurrencies at the moment. Their commitment to cryptocurrency is strong, and they are working on launching a crypto trading desk. Their dedication to cryptocurrency could see them become a destination for crypto investors in the US.
Revolut started as a non-licensed financial institution in the UK, but it now operates as a full-fledged bank with over 2 million customers. Their services are available to people in the UK and Europe. Revolut is famous for allowing individuals and businesses to deal with cryptocurrencies using their bank accounts. In addition to that, customers of Revolut can purchase cryptocurrencies using their bank accounts. The three account types here (standard, premium, and metal) all support crypto transactions.
Similar to Goldman Sachs, Barclays is an investment banking giant present in several countries across the globe. Barclays is also one of the biggest banks in the UK. The bank is looking to blockchain technology to aid transactions between customers and is known for its supportive stance with cryptocurrencies. Although it dismissed reports of creating its own crypto, Barclays partnered with Coinbase last year. The partnership saw Barclays create an account with the crypto exchange, making it easier for their clients to buy and sell digital currencies.
National Bank of Canada
This is one of the largest North American financial institutions that maintain a relationship with the cryptocurrency sector. The National Bank of Canada allows its customers to purchase cryptocurrencies using their credit cards. However, the bank regulates and monitor crypto transactions due to the intense scrutiny from regulatory agencies.
Ally Bank is an excellent option for cryptocurrency enthusiasts in the United States. As an online bank, Ally operates at all times of the day, allowing people to purchase and sell cryptocurrencies via Coinbase. The bank has been around since 2010 and assures its users that they would not experience difficulties with cryptocurrency transactions. Their credit cards can be used to purchase Bitcoin and other cryptos from exchanges.
USAA is another Coinbase-partnered bank that supports cryptocurrency transactions. Their partnership with Coinbase enables customers to buy, sell, and invest in cryptocurrencies.
This is one of the best banking options for people living in the United States. The funds here are insured by the Federal Deposit Insurance Corporation, which gives assurance to most of its customers. The bank works freely with cryptocurrency exchanges, allowing its clients to purchase cryptocurrencies. However, Simple Banks is exclusively for people living in the United States at the moment.
Other crypto-friendly banks
There are other cryptocurrency-friendly banks, and they include:
- Fidor Bank
- LHV Bank
- Change Bank
There are electronic money institutions (EMIs) that support cryptocurrency transactions. PayPal is not one of them, but a few others support crypto activities. You can read about the best credit/debit card solutions for Bitcoin in 2019 here.
Banks who are against cryptocurrencies
While it is no secret that banks hate cryptocurrencies, a few of them have come out to publicly made negative comments about cryptos and banned their users from purchasing Bitcoin using their credit/debit card.
Here are some banks that should be avoided for cryptocurrency transactions.
- JPMorgan Chase
- Bank of America
- Nordea Bank
- Danske Bank
- Capital One
- TD Bank
- Wells Fargo
- Royal Bank of Canada
- Bank of Montreal
- Lloyds Bank and a host of others.
The traditional banks have always been against cryptocurrencies. However, some of them have embraced the innovation and allow their users to purchase, sell, and invest in cryptos using their credit and debit cards. Asides banks, some electronic money institutions also support crypto-related transactions on their platforms. Wells Fargo and Bank of America are some of the banks you should avoid when dealing with cryptocurrencies.