If you’re looking for ways to manage both your traditional and alternative currencies, you may have wondered, “Which banks are Bitcoin friendly?” While there are some US banks that let you purchase Bitcoins through your bank account, most US banks do not allow customers to purchase or exchange any type of cryptocurrency. However, as the federal government has recently passed new legislation about digital currencies, that might all be about to change. Banks are catching on to the popularity of cryptocurrency and expanding their services accordingly. Cryptocurrency’s blockchain technology has revolutionized how we think about our finances, integrating decentralized systems and low fees while prioritizing privacy. Due to the increasing demand for cryptocurrency, banks have had to set aside their fears and cater to their customers.
Why Don’t Most Banks Accept Bitcoin?
The list of which banks are Bitcoin friendly is currently rather short. In fact, at the moment, many major US banks, such as Bank of America and Capital One, explicitly ban their clients from using their credit cards, ACH, or wire transfers to purchase cryptocurrencies.
Most US banks have made the decision to not offer cryptocurrency services because they see Bitcoin prices as volatile and unsecure. Their concerns about cryptocurrency price jumps and fraud risks are largely unfounded, as Bitcoin is both more safe and more stable than most traditional currencies. The blockchain makes it very difficult for money laundering or theft to occur, and the finite amount of Bitcoins in existence effectively prevents money being “created” from thin air. And unlike banks, Bitcoin and other cryptocurrencies cannot be controlled by third parties. This decentralization minimizes outside influence and human interference, helping to eliminate biases. On the other hand, banks are highly centralized, meaning that they can make decisions that influence their users without their consent. While centralization isn’t necessarily bad, the margin of human error in these systems makes them fallible, especially when greed is involved.
But US banks’ fears are justified in some sense because, until very recently, there was no federal guidance on how banks should handle cryptocurrencies. All national banks are regulated by the Office of the Comptroller of the Currency (OCC). If a bank violates the OCC’s regulations, it could potentially cause serious financial and reputational harm to that bank. As the OCC has been relatively silent on the matter of cryptocurrencies, many banks have not engaged in alternative currencies out of fear that it would put them in hot water.
The Latest Federal Legislation About Cryptocurrencies and Banks
The general attitude that US banks have towards Bitcoin may start to change soon. That’s because, just weeks ago, the OCC announced national banks are now allowed to perform custodial services for cryptocurrencies. In other words, banks can now store digital wallet codes for their customers. Instead of being allowed only at select banks to transfer funds into Bitcoins, bank customers would now be able to buy, trade, and store cryptocurrencies in their traditional bank account. As ownership of cryptocurrency rates increases, banks understand that Bitcoin will be an essential feature of the future of finance. And to ensure that they have a place in that future, banks are beginning to hop on the crypto bandwagon despite their reservations. Additionally, banks recognize that cryptocurrency is lucrative, and they’re looking to maximize their earning potential.
The OCC’s announcement could have a major impact on the future of alternative currencies in the US. Now that there is legal precedent as to how banks can interact with cryptocurrencies, banks will likely feel more comfortable allowing transactions with Bitcoin. A national adoption of Bitcoin and other alternative currencies would likely cause a societal ripple effect, with more citizens and businesses accepting these cryptocurrencies as a viable option.
Which Banks Are Bitcoin Friendly?
Although we don’t know exactly what the future holds when it comes to banks and cryptocurrencies, it so far looks bright. For now, however, most US banks do not offer cryptocurrency services, and those that do generally only allow you to use your bank funds to buy cryptocurrencies rather than keep them in digital wallets.
So, as of right now, which banks are Bitcoin friendly? Check out our list below.
USAA is a company that handles a variety of financial services, such as bank accounts, insurance policies, and investment options. USAA was the first major US bank to invest in a cryptocurrency exchange. It’s very easy to view your Coinbase transactions from your USAA account, whether you’re logged in online or on USAA’s mobile app. USAA members can also purchase Bitcoins with USAA debit cards, bank transfers, and bank wire payments. This bank is a great option for people looking for not only a traditional bank that’s Bitcoin friendly but offers other financial services too.
Simple Bank is a direct bank, meaning that it operates entirely in the digital world, but still FDIC-insured. You can use a variety of cryptocurrency exchanges with Simple Bank to buy and sell Bitcoins. Simple allows members to buy Bitcoins with either their bank accounts or debit cards. Apart from its acceptance of cryptocurrency, the big draw of Simple is the seamless integration of banking features with online budget planning tools. You should choose Simple if you’re looking for a crypto-friendly bank that lets you both track your bank expenses and plan your budget.
Ally Bank is another virtual-only bank, but they offer 24/7 customer service support to make sure that you’re always getting the financial support you need. They also do not charge any bank maintenance fees, and you’ll be hard-pressed to find many other banks with a 1% annual percentage yield on your savings. Cryptocurrency can be purchased with an Ally Bank debit card, bank transfer, or bank wire. Ally makes it easy to link your bank account to Coinbase to accomplish these transactions. Ally is probably the bank for you if you want a bank that both supports cryptocurrencies and yields a nice amount of interest.
When you open an account with Chime Bank, you get full virtual bank functionality plus the ability to use any of their 38,000+ ATMs. Chime Bank has no overdraft, monthly, or minimum balance fees, and claims that you’ll receive your direct deposits faster than with most other banking companies. Chime does not allow Bitcoin transactions to be conducted with its debit card or through bank wires. However, Chime does make it easy to use a third-party application called Paxful through which you can directly pay individuals with Bitcoins if you know their email, phone number, or username. If you want a bank with minimal fees and don’t need as many cryptocurrency functionalities as offered by the other banks on our list, Chime is a good choice for you.
Aware of how cryptocurrency can change people’s economic fortunes, banks like Wells Fargo are ready to capitalize on this earning potential to get a cut of the profits. In 2021, Wells Fargo expanded its cryptocurrency offerings, but only to wealthy customers. By offering crypto funds to affluent customers rather than all customers, Wells Fargo is trying to protect themselves and please their biggest accounts at the same time. While it may seem unfair, this move indicates that other banks may choose to concentrate on larger crypto funds that will benefit themselves as a business. In addition, these calculated investments and expansions may help to protect banks should Bitcoin crash. Rather than undermining the entire infrastructure of its financial operation and irreparably damaging its’ customers’ finances, wealthy customers will be able to bounce back quicker and help Wells Fargo to do the same.
Bank of America is one of the largest banks in the nation. Customers can use Merrill Edge, a Bank of America subsidiary, to invest in cryptocurrency. Founded in 2010, Merrill Edge is an online trading platform that allows customers to invest in exchange-traded funds or ETFs. These ETFs offer exposure to the cryptocurrency market using decentralized blockchain technology.
Headquartered in New York City, JPMorgan Chase is a multinational investment bank paving the way for cryptocurrency in banking. Chase offers a range of banking services for corporations and individuals, checking and savings accounts, credit cards, home loans, and much more. And now, customers can use the Coinbase exchange to buy and sell cryptocurrencies like Bitcoin. Additionally, Chase adopted blockchain technology in 2021 when it created JPM Coin, a currency made to facilitate international payments. JPMorgan also created a Bitcoin fund accessible to wealth management clients, expanding their cryptocurrency offerings. But, like Wells Fargo, these last two options are not available to all customers.
Turn to Pelicoin for Bitcoin-Friendly ATMs
Knowing which Bitcoin banks are friendly can help you make smart decisions about how to manage both your traditional and alternative currencies. And although there are US banks that offer some virtual cryptocurrency functions, no US bank allows you to buy and sell Bitcoins through an ATM. But that’s exactly what Pelicoin ATMs are designed to do, and with the utmost safety and efficiency for each transaction. With 35 machines in the Gulf South, we make it super convenient for you to get Bitcoins on the go. Contact us today at support@pelicoin.com or check out our FAQs to learn more about the most secure cryptocurrency ATMs in the south.
