I know some of you might be perplexed by the title and thinking, wasn’t crypto invented to shun banks and make a new system.
Well, it was so, and it is still so.
Crypto, specifically Bitcoin was born to create a reliable and trustless alternative to traditional banking.
But let’s be honest, without the existing banking structure Bitcoin couldn’t have reached the heights it is today, so quickly.
Access to the debit cards and credit cards gave the opportunity to millions of investors to invest in Bitcoin. But that’s where their approach also went wrong.
Bitcoin isn’t just an investment vehicle that you buy low or sell high, it is much more, and many of us don’t realize this.
But banks have realized, Bitcoin and crypto are an existential threat to them and that’s why many banks around the world have stopped catering to crypto/Bitcoin businesses.
Especially, the large banks are quite skeptical about these digital currencies and technology behind them because they have never faced such direct competition from the internet industry on the subject of money.
Several UK, Australia, United States banks have now banned using credit/debit cards to buy Bitcoin or other cryptocurrencies.
That’s why now cryptocurrency users need crypto or Bitcoin-friendly banks, more than ever for their fiat off & on-ramps.
Because of the denial of the existing infrastructure, many investors, as well as crypto believers, are looking out for more friendly solutions to interact with cryptocurrencies.
And the good news is:
Certain pioneers have started building the new infrastructure while in some places old small banks are trying to become more open-minded about this technology.
|Best Cryptocurrency Friendly Banks||Quick Links|
|Wirex (UK & Euro Region)||Try Now|
|Change (Euro)||Try Now|
|Revolut (UK & Euro Region)||Try Now|
|Bankera (Euro)||Try Now|
|MonAize (Euro)||Try Now|
|The United Services Automobile Association (US)||Try Now|
|Bitwala (Germany)||Try Now|
|Ally Bank (US)||Try Now|
|Simple Bank (US)||Try Now|
|The National Bank of Canada||Try Now|
|Barclays (UK)||Try Now|
Top Bitcoin-Friendly Banks That Allow Cryptocurrency In 2020
#1. Wirex (Best Banking For Bitcoin)
Wirex is a cryptocurrency wallet provider and a crypto-friendly banking service for buying/selling cryptocurrencies based out of the UK, London.
The first Wirex currency account available will be based in the UK — available to dozens of countries around the world — with a British account number and sort-code, 100% secure and fully registered with the UK Financial Conduct Authority.
They also provide you with their real debit card liked to your account, and it gets even better from here:
With this card whenever you will make in-store retail purchases, you will get 0.5% cashback in the form of BTC (Wirex calls it as cryptoback).
And here are some more USPs of using this crypto-friendly UK based banking service:
- Buy, store and manage your crypto (BTC, LTC, XRP, ETH) and traditional money (GBP, USD, EUR).
- Add funds using a credit card, debit card or bank transfer.
- Instantly exchange between crypto and traditional currencies at live rates.
- Link to your Wirex Visa payment card to convert and spend your crypto in-store and online
- Quickly and easily send 18 traditional and digital currencies around the world
- Transfer funds in and out of your account with SEPA/SWIFT/Faster Payments*
- Enjoy unrestricted access to the world of borderless payments
Change is another crypto-friendly bank in Europe, but it is in the making.
Change’s crypto wallet is in place, thanks to their massive funding ($17.5 million) that they received. They also provide in-app trading of Bitcoin, Ether, Litecoin and Ripple, that too free of commission.
They have their iOS and Android apps in place, but right now only European customers can use it.
They also will be launching their native credit/debit card, obtain the European payment license, make fiat wallets & IBAN numbers, and finally to get a full-fledged banking license by 2020.
Revolut is a UK registered company that started with no license but now has turned into a full-fledged bank since its launch in 2015 with over 2 million customers.
Their service is available for UK & Euro region countries and United States residents cannot use it for now.
Most importantly, it allows businesses and individuals to deal with cryptocurrencies when you use their bank account. Furthermore, it has inbuilt functionalities also to help you buy bitcoin and other cryptocurrencies.
It offers three types of accounts: Standard, Premium, & Metal so you can choose whichever suits you for international banking as well as your crypto needs.
Believe it or not:
Bankera is building a simple bank for the blockchain era.
Bankera aims to be the bridge between the traditional banking world and blockchain technology. And it is very much capable of doing it because they have experience of developing -SpectroCoin, (popular crypto wallet and exchange)
Bankera will be like the old brick and mortar banks only but built on the new technology of blockchain/AI combined. The process is still underway, and it is likely to go live soon in a year or so.
Monaize is an integrated banking platform for crypto and bank account users.
It is a European e-banking platform that has a mobile-first approach intending to provide current accounts for freelancers and small businesses.
You can think of them as crypto-business bank accounts
They also have an instant KYC check process in place to onboard businesses, and it hardly will take a few minutes to do so, in comparison to traditional banks.
Monaize will also integrate with other third-party services such as professional insurances, payment solutions, and number of crypto-wallets.
Monaize also looks to functions within the current banking infrastructure while opening itself up to the blockchain community and sensitizing users, small businesses, to this exciting new technology.
Monaize will be expanding its services to the United Kingdom, Germany and the United States for 2019, before rolling out to the other countries in the world.
#6. The United Services Automobile Association (or USAA)
USAA is Texas, USA based financial service company for US military citizens. It is a fortune 500 company catering to active, retired and honorably separated officers and enlisted personnel of the U.S. military.
It also allows civilians to make their bank accounts with them and has invested $150 million in Coinbase making it easy for the USAA bank account holders to interact with Coinbase’s Bitcoin account.
With your USAA account, you can fully track your Bitcoin wallet on Coinbase and hence can connect USAA with Coinbase, view your balance and monitor your transactions
Note: Information related to Bitcoin wallets is provided by Coinbase and is accurate at the time retrieved. USAA does not independently verify the accuracy of this information. Plus USAA is insured by the FDIC so that you can remain at ease.
Bitwala offers the world’s first cryptocurrency simple bank account from where you can manage your everyday banking, trade cryptocurrencies and store bitcoin that too all in one account.
Bitwala understands your pain points because of their own bank account was closed for dealing in cryptos. Thus they have come back with banking solutions that support crypto.
The company is working in this space since 2013 and is registered as Bank under the German Banking Act. So any German resident can easily use their service to get crypto-friendly banking in minutes.
#8. Ally Bank
For US customers who are interested in Bitcoin and other cryptocurrencies as well as traditional banking, Ally Bank is for them.
The Ally bank is fully regulated by US laws and serves large cryptocurrency exchanges like Coinbase. Moreover, it is a totally digital platform with no physical branches and 24-hours of online support which kind-off the best need for crypto lovers.
Only US residents can use Ally Bank services as of now.
#9. Simple Bank
Simple Bank started like a Fintech startup of the modern-day and has transformed into an FDIC backed/insured bank for US citizens. The bank is based out of Oregon, USA and so has worked with US-based numerous cryptocurrency exchanges making it one of the friendliest Bitcoin banks for the US residents.
#10. The National Bank of Canada
National Bank Of Canada is one of the few Canadian banks that has kept a relationship with cryptocurrency businesses. If you are a Canadian resident, you can use this bank to buy/sell cryptocurrencies like Bitcoin.
But though it allows crypto transactions, the bank is heavily regulated and scrutinizes the transactions carefully.
Whereas other Canadian banks like Royal Bank of Canada & Toronto Bank has forbidden its users to use their banking services to buy/sell cryptocurrencies.
Barclays-the biggest investment bank of the UK is particularly interested in din cryptocurrencies and blockchain technology. They provide UK residents to buy/sell cryptocurrencies through their banking services in tandem with Coinbase.
Furthermore, it is exploring other ways to secure cryptocurrency transactions in the traditional realm using the blockchain technology.
Banks Accepting Cryptocurrency
So these were some of the crypto/Bitcoin-friendly banks that in the making or live. And there have been advocating for more such Bitcoin/crypto-friendly banks around the world and Wyoming; a western US state is trying to become a hotbed for such banks.
Wyoming is eyeing to create friendly regulations to form blockchain-friendly banks to lure Bitcoin Startups.
And the main difference between such crypto banks and traditional banks will be, while conventional banks operate on fractional-reserve lending, Wyoming’s crypto bank will be 100% backed.
It means it will maintain a cryptocurrency-to-liquid-funds ratio of 100%, essentially making it a “money warehouse” or a “transfer institution” but for crypto-related services only.
Caitlin Long, a 22-year long Wall Street veteran is driving forth this movement and ultimately be building such first bank in Wyoming for crypto companies.
Amazing #Wyoming #Blockchain Task Force mtg concludes in Jackson—we’re moving fwd with a special #bank for #crypto cos, #fintech #sandbox w/ reciprocity, expansion of #utilitytoken bill & bill to attract #crypto miners to WY. More to do but much progress!#theworldneedsmorecowboys pic.twitter.com/nLss9eJevN
— Caitlin Long ???? (@CaitlinLong_) September 26, 2018
Furthermore, some services are tracking the traditional banks and their relative friendliness towards crypto. And here is some interesting country-wise data from them:
- Crypto/Bitcoin-Friendly Banks In The US
- Crypto/Bitcoin-Friendly Banks In The UK
- Crypto/Bitcoin-Friendly Banks In Europe
- Crypto/Bitcoin-Friendly Banks In Malta
Note: These images are sourced from moonbanking.com, feel free to visit them for more details regarding your country’s situation.
And with that said, I will take leave for today, and I hope this information on crypto-friendly banks helps you make better decisions.
Lastly, do share this post with your friends and family, who want to know about such banks!!
- Top Bitcoin-Friendly Banks That Allow Cryptocurrency In 2020