A number of reports have come to our attention by cryptonians who state banks are not allowing them to transfer their own money to crypto exchanges.
A Canadian crypto broker with a focus on remittance apparently sent this to their clients recently according to unverified reports:
“nTrust was originally built to be a remittance platform: an easier way to send money around the world. Unfortunately, some financial institutions that we partnered with years ago are uncomfortable with cryptocurrency.
Our current Canadian bank recently decided to stop supporting nTrust’s business. We are disheartened by the bank’s decision but also know that we are not alone.
Around the world, cryptocurrency wallets and exchanges have faced similar challenges with banking, which has made it more difficult for everyday people like you to acquire Bitcoin.”
London’s FCA has implicitly accused banks of anti-competitive behavior, which can be a criminal offense. Izabella Kaminska, a bitcoin critic and FT columnist, stated in regards to those findings that it is known banks are monopolies and act like a cartel.
With our elected and the civil service thus seemingly doing nothing to enforce their own law or their own mandate of encouraging competition, cryptonians are left with finding ways around banks.
As on and off rails through exchanges or banks can be a very centralizing point, cryptonians have long promoted the establishment of a complete financial cycle solely on crypto.
For example, here at Trustnodes we accept BTC/H, ETH, and any established crypto or token in payment for our advertising placements.
Instead of converting that BTC/ETH to fiat, then paying our splendid journalists, we can just give them crypto directly.
Thus here we have established part of a cycle, but it breaks down when it comes to suppliers in particular. We for example have a paywall because someone has to pay for our excellent reporting and we don’t want to be beholden to advertisers which is why our ads are static and very unintrusive.
We can and in the future probably will have an inhouse implementation of it, but for now have to rely on off-the shelf solutions. In this case, they do offer the option of paying in BTC, and unfortunately only BTC, for the fixed three months subscription, but they don’t offer the option of paying us in crypto.
Where it really breaks down however is in purchasing food. The local shops and supermarkets don’t accept crypto. Neither really many of the local cafes. Some online takeaways do, but we’d rather reserve such takeaways for occasions, instead of daily.
But for something like Trustnodes, the cycle is very close to complete. If, for example, we were forced to live on crypto, we probably would be able to, although it might not be very convenient.
But for something like a crypto-cafe it might be more difficult primarily because their suppliers do not accept crypto. We presume they buy much of their stuff from wholesalers who might have not even heard of this new digital money. So if banks cut off their accounts, they would struggle and might even have to close down their business.
Which is why it is crucial the now far bigger crypto ecosystem promotes the acceptance of cryptocurrencies in bars, cafes, suppliers, property developers, and so on.
There are, of course, some problems. For Trustnodes specifically, a major problem is the lack of recurring payments. Few want to make the same payment over and over, not least because humans are very keen on forgetting, and if they have to be reminded again and again they might get annoyed.
The lack of it has its own advantages, but not really, from our point of view. There are ways of providing such functionality, it is all just code, but the endless scalability “debate” froze any work on making crypto payments or features convenient.
With that debate now thankfully very much over, attention can once more turn towards a crypto nation. A land where men and women transact in a peer to peer manner without banking monopolies rent seeking on their money, while doings so for nearly free and pretty much instantly across the globe.
Bitcoin Cash specifically can handle this crypto world right now. Ethereum might be able too by perhaps 2020, as might bitcoin dependent on how the Lightning Network will function in practice.
Thus banks might afterall be doing us a favor if they keep up with their monopoly practices and act as if they own our money and can tell us what to do with it even when criminal behavior is not concerned.