Euro Bank Santander Commissions Study On Bitcoin's Impact On Banking

First time accepted submitter Nikkos (544004) writes Digital currency news website HashReport broke the news Monday that European megabank Santander has commissioned a study to "Analyze the impact of bitcoin and other cryptocurrencies on banks and devise a strategic course of action." The study is being facilitated as a challenge through Yegii, an 'Insight Network' founded by Trond Undheim. Undheim is also a Senior Lecturer at MIT Sloan School of Management, as well as Managing Director at Tautec Consulting. The challenge was initiated by Julio Faura — Head of Corporate development for Banco Santander. According to Dr. Undheim, Faura was "looking for additional outside perspective onto the topic of Bitcoin. While acquiring consulting services from top tier consulting firms can be exciting, he thought that an outsider, multidisciplinary perspective, would be particularly helpful."

Comments

Re:hm

[segedunum]

No. It just means that banks are looking for ways in which they can manipulate them.

Less profits for big banks

[MrL0G1C]

With bitcoin being good for money laundering, the big banks will lose that source of revenue.

Re:Less profits for big banks

[Anon-Admin]

These comments about bitcoin being good for money laundering are such BS. Do you even understand what money laundering is?
Note: I have worked in Financial IT and have had the AML (Anti-Money Laundering) training which was less impressive that it sounds. lol

The point of money laundering is to make an illegal income look legal. To take large amounts of a given currency received for an illegal act and to provide it a banking trail that makes the money look like it came from a legal source of income.

In most cases money laundering starts with large amounts of cash. Buying bitcoin does not magically make it look ligitement, and what exchange takes cash?

The truth is money laundering tends to be done by mixing the illegal money into the income of an all cash business like vending machines, massage parlours, small computer stores, etc. Then showing it as ligitement income on the books.

Re:Less profits for big banks

[Cardoor]

first and foremost, if you want to give someone cash for their bitcoins, im pretty sure you could find a willing participant on the other side.maybe it's at a discount to the nominal exchange rate (but presumably not as onerous as the 30-40% that 'better call saul' quoted walter white).

in any case, w/r/t money laundering, while technically correct on some points, your argument misses the larger purpose. money laundering is, at it's core, a means by which either illegal or simply non-tax-reported income can be re-introduced into the economy without alerting authorities for either purchases of goods/services, or for electronic transfer (ie, wiring money instead of trying to cross the border with suitcases full of cash).

to the extent that btc becomes ubiquitous in use, acceptance, and most importantly, the average persons 'wallet', then cash need not be *any* part of the initial illegal/untaxed transaction... while still providing purchasing power into the real economy for the new BTC owner, as well as immediate means of electronic transfer.

Re:Less profits for big banks

[nedlohs]

Sure.

Launder money for drug cartels, sanctioned states, and terrorists for years, ignore multiple "stop doing that" orders for regulators and when caught red handed you get a fined a few weeks profits and told you are too rich and powerful for the government to bother with the slam dunk criminal case.

Very severe!

Re:Less profits for big banks

[oodaloop]

With bitcoin being good for money laundering

lolwut?

Re:Less profits for big banks

[Anon-Admin]

Ill reply to my own post to answer many of you who replied.

Changing cash to bitcoin and back to cash does nothing to launder the money. Move the money, sure, but not laundering it. Even moving it out of country does not launder the money and then the person receiving the money still has the task of getting it converted back to $$ without raising suspension.

To those that list localbitcoin or atm's, really for money laundering you would need LARGE amounts. We are talking number above 20k but to be honest it would more than likely be in the millions. There is no buying 50k in bitcoins from an ATM and localbitcoin, although great for a few $100 falls a bit short when talking 20k+

On Banco Santander reports

[ccguy]

As someone living in Spain and doing business with Banco Santander I can assure you they're experts on bullshit reports. Whatever this report says (It's not my go potty time yet so I haven't read it) don't worry much unless you are in Spain. If you are then just expect a law on BitCoin to be passed soon.

Re:On Banco Santander reports

[Pax681]

Yup....Santander are assholes. they took over my bank (alliance and leicester) who were decent till santander took over.
soon it was charges for this and that.. total PITA.
now i bank with my local credit union and i am MUCH happier

Re:On Banco Santander reports

[SuricouRaven]

I'm a former A&L customer too, but I never really noticed any change at all. But maybe that's because I use them only for the current account service, no loans or credit cards or other tools of finance.

But I've got to contact them soon about a soon-to-mature savings bond I got years ago, so we shall see.

Verdict

[marcello_dl]

"It's simple.
We kill the bitcoin."

I would be less concerned about BTC and more about cryptocurrencies in general. If people get used to that concept, using money as a totalitarian weapon and keeping the pretenses of democracy will be quite difficult.

Conclusions

[swb]

"In order to continue to maintain control over the economy and manipulate financial markets, banks will probably have to get some laws passed that give us control over bitcoin."

Human-readable translation:

[carlhaagen]

They are looking into the best course of action to have cryptocurrencies banned as it threatens their paychecks and their control over people's money.

Revenue earner

[Taco Cowboy]

For banks the virtual coins are but another form of financial vehicles but for government it represents new ways of landing them more $$$

The US already found a way to tax Bitcoins ...

[perpenso]

Or the governments are trying to find ways to tax the transactions done in Bitcoin.

The US already found a way to tax Bitcoins, as an asset. They announced this earlier this year.

I believe that miners have to record income on the day they received coins from mining operations and that sellers have to record a gain/or loss at they time they sell/trade coins. This means that when you buy that cup of coffee you have to note the price difference between when you acquired the coins and when you bought the coffee, and report that gain/loss.