You might have wondered, “Which banks are Bitcoin-friendly?”, especially if you’re looking for ways to manage both your alternative and traditional currencies. Most US banks don’t allow customers to get or exchange any sort of cryptocurrency, although there are some US banks that allow you to get Bitcoins through your checking account. However, because the nation has recently passed new legislation about digital currencies, which may all be on the brink of change.
Why Don’t Most Banks Accept Bitcoin?
It is currently rather short the list of banks that are considered Bitcoin-friendly. In fact, a lot of the major US banks ban their clients from using their credit cards, ACH, or wire transfers to buy cryptocurrencies. Among these banks are Capital One and Bank of America.
Because Bitcoin prices are seen as volatile and unsecured, most US banks have made the choice to not offer cryptocurrency services. Bitcoin is both safer and more stable than most traditional currencies as opposed to the banks’ concerns about cryptocurrency price jumps and fraud risks are largely unfounded. The blockchain makes it very difficult for concealment or theft to occur, and also the finite amount of Bitcoins breathing effectively prevents money being “created” from nullity.
there was no federal guidance on how banks should handle cryptocurrencies, until very recently, so US banks’ fears are justified in some sense. The Office of the Comptroller of the Currency (OCC) regulates all national banks. If a bank violates the OCC’s regulations, it could potentially cause serious financial and reputational harm to its bank. Many banks haven’t engaged in alternative currencies out of fear that it’d put them in a quandary because the OCC has been relatively silent on the matter of cryptocurrencies.
The Latest Federal Legislation About Cryptocurrencies and Banks
The general attitude that US banks have towards Bitcoin may start to vary soon. Because the OCC announced just weeks ago that performing custodial services for cryptocurrencies by national banks is now allowed. In other words, banks can now store digital wallet codes for his or her customers. Bank customers would now be ready to buy, trade, and store cryptocurrencies in their traditional checking account, rather than being allowed only at select banks to transfer funds into Bitcoins.
The OCC’s announcement could have a serious impact on the longer-term of other currencies within the US. Now that there’s legal precedent on how banks can interact with cryptocurrencies, banks will likely feel softer allowing transactions with Bitcoin. With more citizens and businesses accepting these cryptocurrencies as a viable option, national adoption of Bitcoin and other alternative currencies would likely cause a societal ripple effect.
Which Banks Are Bitcoin-Friendly?
Although we don’t know exactly what the long run holds when it involves banks and cryptocurrencies, it thus far looks bright. For now, people that do generally only allow you to use your bank funds to shop for cryptocurrencies instead of keeping them in digital wallets, however, most US banks don’t offer cryptocurrency services.
So, as of straight away, which banks are Bitcoin-friendly? Try our list below.
ALSO READ: What Makes Cryptocurrency Go Up in Value?
USAA
USAA could be a company that handles a range of economic services, like bank accounts, insurance policies, and investment options. USAA was the primary major US bank to take a position in an exceeding cryptocurrency exchange. Whether you’re logged in online or on USAA’s mobile app, it’s very easy to look at your Coinbase transactions from your USAA account. With USAA debit cards, bank transfers, and bank wire payments, USAA members may now purchase Bitcoins. For people searching for not only a conventional bank that’s Bitcoin-friendly but offers other financial services too, this bank could be a great option.
Simple
Simple Bank operates entirely within the digital world but is still FDIC-insured while being a direct bank. You’ll be able to use a range of cryptocurrency exchanges with Simple Bank to shop for and sell Bitcoins. Simple allows members to shop for Bitcoins with either their bank accounts or debit cards. But its acceptance of cryptocurrency, the massive draw of ease is that the seamless integration of banking features with online budget planning tools. If you’re searching for a crypto-friendly bank that enables you to both track your bank expenses and plan your budget, you ought to choose Simple.
Ally
Ally Bank is another virtual-only bank, but they provide 24/7 customer service support to form sure that you’re always getting the backing you wish. They also don’t charge any bank maintenance fees, and you’ll be hard-pressed to search out many other banks with a tenth annual percentage yield on your savings. Cryptocurrency will be purchased with an Ally Bank open-end credit, bank transfer, or bank wire. Ally makes it easy to link your checking account to Coinbase to accomplish these transactions. If you wish for a bank that both supports cryptocurrencies and yields a pleasant amount of interest, Ally could be the bank for you.
Chime
When you open an account with Chime Bank, you get full virtual bank functionality plus the power to use any of their 38,000+ ATMs. Chime Bank claims that you’ll receive your direct deposits via your Chime bank routing number faster than with most other banking companies, and has no overdraft, monthly, or minimum balance fees. Chime doesn’t allow Bitcoin transactions to be conducted with its charge account credit or through bank wires. Chime may be a sensible choice for you if you wish for a bank with minimal fees and don’t need as many cryptocurrency functionalities as offered by the opposite banks on our list.
