Banks Still Wary about Bitcoin, Affects Bitcoin Based Business

When it comes to the banking sector, the banks want to have the cake and eat it too. On one side, all the major international banks are making a beeline to incorporate blockchain technology into their operations whereas, on the other hand, they are not so eager to offer their banking services to bitcoin companies.

Bitcoin has exhibited a strong growth since 2013. The digital currency has been around for the past 7 years, but its rapid growth gained everyone’s attention. The growth of bitcoin adoption also saw many startups offering innovative bitcoin-based financial services crop up. These services were far cheaper and more efficient than the conventional financial services. In addition to financial services like remittance and fund transfer, bitcoin combined with its underlying blockchain technology also started to gain a foothold in the fintech sector.

Banks Keep Their Distance from Bitcoin

The sheer potential of bitcoin in banking and fintech applications has got the banking and financial institutions threatened. Banking and fintech sector are still dependent on legacy systems and bitcoin technology is something that is completely new to them. The hostility towards bitcoin and bitcoin-based companies is mainly due to the following reasons