Why do Banks Hate Bitcoin?

December 2, 2013

Many banks hate Bitcoin and are feeling threatened by the new digital cryptocurrency.

Coindesk recently wrote an article about Dutch Bank Rabobank.

The context was the same as many articles before that have and have not made it to more major media outlets: Bitcoin businesses guillotined by banks around the world.  Rabobank has blocked transfers of fiat to Bitcoin exchanges in the past for individuals, not just businesses.  Rabobank even had days when all attempted online transfers to domestic Bitcoin Exchanges were met with a technical error.  Two websites in the locality have since spread out leaked internal documents from Rabobank that show Rabobank’s Ethics Commission adviseing its branches to not facilitate Bitcoin trading for its customers and to label those that attempted to do so as high-risk.

This is a step beyond United States banks refusing to grant loans to Bitcoin start-ups for obvious risk reasons.  In fact, Rabobank claimed that the documents were related to the bank’s decisions to not grant loans to individuals planning to set up a Bitcoin Exchange, not just individuals trying to buy Bitcoins.  The overwhelming individual accounts from Dutch Bitcoiners says otherwise though.  Bank actions such as those undertaken by Rabobank are only going to further antagonize those curious about Bitcoin to abandon the current archaic financial system.

From the article:

Banks in several other countries have also engaged in some level of anti-bitcoin activity, such as Australia’s Commonwealth BankCanada’s Toronto-Dominion Bank and Royal Bank of Canada, Barclays in the UK and Sweden’s Swedbank.

Add on top of that the actions of United States based payment processors Dwolla and Paypal against Bitcoin and Bitcoin related businesses and the future landscape for Bitcoin adoption might seem bleak to the untrained eye.  Please, train your eye.


The fact that Bitcoin is facing so much top-down antagonism from those particularly moneyed Western banks shows that Bitcoin is on the right track.  It won’t be long before the average netizen realizes that Bitcoin is a better place to put ones savings than a bank account.  Bitcoin is ruffling the feathers of those that have been in monetary power for centuries, thus is the nature of paradigm shifts and change in general.


Have a cryptic day, mis amigos.


Last modified (UTC): April 20, 2014 18:25

Tags: Bitcoin