Why Banks Aren’t Banking Your Crypto Startup
Cointelegraph
Published Feb 28, 2020 09:08AM ET
Updated Feb 28, 2020 10:42AM ET
Why Banks Aren’t Banking Your Crypto Startup
Your bank, no matter how neo or how challenger, can’t bank Bitcoin (BTC). They could bank blockchain companies, adding value and providing services for the space, which would be good for both the bank and the clients, but they are afraid of repercussions from regulators and their partners.
Since many smaller banks use “correspondent banks,” whose direct access to the Federal Reserve system’s FedWire and other official payment rails they leverage, they can’t make the decision to accept Bitcoin clients in a vacuum. They must consider their correspondents (generally, big banks), who don’t want their partners working with crypto — a classic underbanked industry.
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Written By: Cointelegraph
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