Bitcoin Banking
About Bitcoin Banking
Bitcoin and cryptocurrency challenged traditional banking by offering an alternative financial system. Early Bitcoin companies like Mt. Gox, Coinbase, and Circle operated as crypto exchanges. Some companies offered interest bearing crypto accounts, functioning like banks. BlockFi and Celsius offered high yield crypto accounts before collapsing in 2022. Crypto companies obtained banking licenses in various jurisdictions. Kraken received a Wyoming bank charter in 2020. Custodia Bank, founded by Caitlin Long, applied for Federal Reserve membership, sparking a legal battle over crypto banking access. The tension between crypto innovation and banking regulation remains unresolved. Central bank digital currencies represent an attempt to provide digital currency within the traditional banking system.
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