Banker: ‘I am Scared for the Banking Industry…Bitcoin could Knock Banks out of the Game’

Bankers and industry leaders in the Texas panhandle have recently been discussing what to do about blockchain technology and bitcoin. They are curious how they can get banks involved in leveraging cryptocurrencies, because they do not want to be left in the dust. However, some of them are also scared for the banking industry. In their eyes, bitcoin has the power to undermine the banking system and reshape the financial landscape.  

Also read: Major Darknet Marketplace Alphabay Goes Down, Exit Scam Speculations Arise

In an Amarillo Local News article published yesterday, Bank of Banker: 'I am Scared for the Banking Industry...Bitcoin could Knock Banks out of the Game'Commerce President Alex O’Brien commented on bitcoin. “I’m scared for the banking industry because I think that Bitcoin and Litecoin, the concepts behind them and the way the blockchain works, is something that could knock banks out of the game.”

But even though O’Brien is worried about the future of banking, he mentioned he really likes the concept of blockchain-based currencies.

It’s a really right-minded concept if you think about it — it’s international currency,” There are no borders and it’s not controlled by anyone, which is neat too. I’m a fan and hopefully we can find a way to get involved.

To Fear or Not to Fear Bitcoin; Average Nerds on the Street Versus Bankers

Another banker at the Amarillo National Bank does not harbor the same fears. He recognizes the future potential of digital currency, though. Vice president Stewart Dodson of Amarillo Nation Bank said the dark, shady roots of bitcoin will be a deterrent for future adoption. He said bitcoin’s past use to facilitate dark web transactions have tainted the currency’s appeal. Now it will harbor that stigma forever.Banker: 'I am Scared for the Banking Industry...Bitcoin could Knock Banks out of the Game'

Even though Dodson sees bitcoin as tainted, he admitted a “digital currency” will eventually be adopted by the mainstream. He mentioned various payment apps like Venmo and Applepay could win the race, even though they are not cryptocurrency-based platforms.

Jon Laur, chief technology officer for EnergyNet — an Amarillo-based oil and gas auction and sealed bid transaction service also chimed in on the discussion. He said banks need to get ahead of the game. He mentioned that if banks do not have someone on the payroll who knows more about cryptocurrency than “your average nerd on the street,” they will be left behind.

Future of the Banking Industry

In the final analysis, the bankers concluded digital automation could change the face of the industry. The convenience of digital currencies makes jobs expendable, and could replace some banking roles. The article detailed, “In a region with 6,600 financial sector employees as of 2014, according to the Texas Workforce Commission, lower-level positions could be eliminated or simply not added as banks invest more in Internet services.”

Do you think the banks will adopt bitcoin, or are some of these bankers right in believing bitcoin will displace them?  Let us know in the comments below.

Images via Shutterstock 

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  • Jocke Gustafsson

    Banks will die.

    • bitminer2049er

      How? We will still need banks. It really doesn’t matter if they are loaning us dollars or bitcoin they will still make their money.

      • Brian Keim

        PEER to PEER loans!! Don’t need banks!! Totally Useless

        • Eloi George

          You ever try to collect from one of those things? Who decides who’s going out to break kneecaps?!? There will *always* be Banks

          • banks don’t actually break kneecaps, they just tell all the other banks not to give you any more money (through credit scores). theoretically you could have a decentralized credit score as well, which would address the issue of defaults, although it would have to be build up over time like our current credit system has been. and you’d have to solve the problem of identity.

          • They *do*, however, come and seize property, with the support of local law enforcement. Repossessions, evictions, wage garnishments, etc…

      • William Wanklyn

        No debt works in a bitcoin world.

        • Jean-luc Lejoly

          there will always be people that need more funding than what they can have right now ==> there will be some loaning to others ==> thus there will be debt. you can’t avoid that. EVEN IN A THE BITCOIN WORLD

          • William Wanklyn

            Because bitcoin is a deflationary currency, if you borrow it, you will be paying back in higher valued bitcoin. Only in a substantially negative interest rate environment would borrowing bitcoin make any sense.

            I agree that people need funding in order to launch projects. In a bitcoin world, such funding will not happen through debt. I am not sure how it would happen in individual cases. I know of areas like Barbuda, where land is held in common and no mortgages are available, since there is no security on the land. Houses still get built based on savings and time.

  • Aaron Michael

    I’m not scared for the banking industry, I despise it and there’s not much that would make me happier then to see the entire Banking industry go under and every greedy piece of human feces who took part in it, LOSE EVERYTHING THEY STOLE through fractional reserve banking. They ought to be banished from the planet.

    • keeps happining

      I kinda with you on your response, the freaking banks with their crap interest rates on our money. while they take our money and make billions off it, your right they suck!

    • Animaniac

      Glad to see other hardened soldiers on the front lines of this

    • Brian Keim

      AMEN AARON!!! I Echo the same and any that defends this f—-ing crooks and I hope they go under with them

    • Joseph K. John Paul

      Banks biggest weakness is operational inefficiency and huge overheads .Time to start cryptocurrency based financial institutions ,lending ,accepting deposits.Financing renewable energy & e-automobiles (focus on trucks & buses first ).

    • Indeed, fractional reserve banking has literally created trillions in imaginary money. Amazing they’ve kept the system from falling apart entirely.

  • keeps happining

    “knock banks out” thats a stretch! many years before being competition to banks, which give them ample time to make arrangements for coexistence. The thing to watch is when government steps in, korea is the place to watch regarding that.

    • Animaniac

      hmm will keep an eye for interference

    • Joseph K. John Paul

      It’s only matter of time ,before Govt steps in with regulations & monitoring. Banks will learn to co-exist and use crypto for international transfers.But if crypto finances are made for lending and other transactions ,Banks will lose customers and increasing operational cost will affect them.

  • Every evil empire meets its demise eventually… Goodbye, banksters.

  • Miseur Dumbazz

    Alex O’Brien – smart
    Jon Laur – smart
    Stewart Dodson – not so smart!
    But seriously, who cares what the “VP of Amarillo Nation Bank” (woo-hoot) says? He’s obviously trying to plug the holes with his fingers before the ship sinks. Dark Web – who the heck even remembers that!

  • elsordo

    It is a grand day to know that the Financial Empires are trembling with fright and I am looking forward to their demise. Banks never lived right nor treat their customers right and so they shall have no more fun. Bitcoin shall take Banks down the road to doom. So long Empire Of Evil!

    • HairyHerry

      With that said, we have Senators coming back to D.C. tomorrow!! Please contact your senators and have them vote against Senate Bill 1241. Doing so is proof positive you’re on Bitcoin’s side. I’ll do it too.

      • elsordo

        Sorry HairyHerry, I do not reside in the Mighty USA, nor am I a citizen of your fine country.

  • 叶振东

    1, if you do not want to be eliminated, you need to cooperate with Bitcoin. 2, if you want to work with Bitcoin, first of all you need to find the real father of Bitcoin. 3, 3, as you know, after the release of Bitcoin can not be controlled by anyone. Banking and Bitcoin cooperation can only be established in the future development of Bitcoin. 4, simply, the cooperation between the banking industry and the real parent of the Bitcoin will be able to create a better future. 5, 5, the banking industry can also be combined, and then cooperate with those who want to steal the right of the Bitcoin. 6, however, there are two problems: the first, the union of global banks. The second, you will eventually fail, you can not find a better future. The future of the world. Maybe you can find short-term financial prosperity – just like China’s stock market! Haha ~

  • While brick and mortar banks as we know them may cease to exist, though I think they will just morph into accommodating for and providing services for cryptocurrencies along with fiat currencies, the powers behind the banking cartel will not go away. These evil people will continue to devise new ways, through regulations, in order to game the system, eek their ungodly profits off the backs of the world’s population and to continue to maintain their overarching economic cartel and control over all nations.

  • Mattyoung

    Central banking lives just fine in the crypto world. The gold standard will work just fine in the crypto world. And block chain works just fine in the crypto world. And savings and loan business works for all crypto currencies, as they are all bearer cash and automated savings and loans will be existing everywhere in the crypto world, except in pure cash we cannot bet time, all interest charges are asynchronous and adjustable, as needed to keep loan to deposit variance within contract. Everything we consider traditional banking moves to the crypto world, the sandbox, and they all work with much greater efficiency. When we spend bitcoin, we will spend from a BofA or Wells Fargo side chain, and we will make intyerst bearing deposits and interest charging loans, with bitcoin. The banks have no need to put all transaction on blockchain, hey will use the ledger service when our trading bots decide to do so, or when we request it. Otherwise, bitcoin works exactly like the crypto dollar.

    Otherwise the entire pure cash network is completely automated, no humans allowed, interest charges computed by computation, just like the exchanges match sell and buy orders. All your deposits and loans managed by a trading bot under contract by us. All the tradebooks managed by the pit boss bot under known contract, all congestion priced.

    Ask yourself, what has bitcoin priced? Ledger fees and that is it, other prices are determined in the tax dollar and converted. Bitcoin cannot price shit without a savings and loan operation, someone needs to understand this fairly quick.

    • “We need magic rubber funny money.”

      The Banksters

      • “We’ll give you a loan to buy this house so that you don’t have to pay rent the rest of your life, but only accept actual government backed currencies”. – The banksters. Anyone who has a toe in our existing economy has to know this idea is infeasible. The US military would literally step in if it came to a threat against the USD. We’d have to go through WW3.

    • William Wanklyn

      Bitcoin lending does not make much sense now. Borrow it now and have to pay back later in way more valuable bitcoins. A deflationary system does not work in a debt based society. So kill the debt, I say. Jubilee

    • William Wanklyn

      Kill the debt = no more banksters

  • If the U.S. government or any other government were really smart they would roll their fiat currency over into Bitcoin and then happily watch as all of their government debt magically dissolved.

    • they would never give up control that easily. LOL nice thought, however.

      • HairyHerry

        It’ll very likely happen even if they don’t want it. You see, the one thing which can take it down is the Market. The government’s buying of everything through the central bank to keep the Ponzi alive is totally unsustainable. The 64 trillion dollar question is WHEN it all collapses. Bet that exact moment and you can wind up unbelievably richer than creme!

        • no doubt the collapse will happen. it has already begun. Yes, largest transfer of wealth ever is happening.

  • Bitcoin is no more dirtied by criminals than gold was dirtied by criminals, or fiat currency was dirtied by criminals.

    Bitcoin can’t be easily controlled by regulation. That is what scares them.

    • Brian Keim

      Who funds the drug Cartels? HSBC!! Who caused the Housing collapse? Banks!! Who opened 2 million fake accounts?? Wells Fargo How many more CRIMES do banks have to commit??

      • William Wanklyn

        Royal Bank of Scotland (RBS) caught making a profit center out of debt collection and asset forfeiture. Gummint did nothing for years. Gummint owns the bank.

        • I’d like to suggest the opposite. Banks in reality own the Gummint. Money has always reigned as King, time immemorial. For whoever has the gold makes the rules.

          “Give me control of a nation’s money and I care not who makes it’s laws.”– Mayer Amschel Bauer Rothschild

          The devil is in the details…
          “the love of money is the root of all evil.” & “money answereth all things.” The Good Book

          • William Wanklyn

            I can’t argue with that, Sam. Hence, Gummint did nothing for years.

  • Mohamed Essaidi


  • Ganancia Diaria Para Ti

    Si Bitcoin sigue como va, llegara a desplazar a los bancos con toda seguridad, anotar fecha que lo digo, pues Bitcoin, igual que internet para la comunicacion ofrece mas facilidad, privacidad, versatilidad, comodidad, sea ganar o para perder, por curiosidad, por fanatismo, por conveniencia, por codicia, por envidia, por lo que sea, pero todos deseamos probar algo nuevo para liberarnos de los monopolios, enormes monstruos financieros que aprovechados de la humildad de los pobres se engordan dia a dia, a ellos por cierto Bitcoin los pone a temblar, pero para el pobre inteligente por fin llego la liberacion economica, Bitcoin, Modificara Brusca e imparablemente las economias mundiales, las cuales solo tendran dos alternativas, la adopcion de Bitcoin o por lo menos celebrar acuerdos amistosos con Bitcoin.

  • WW3

    The remark was made about bitcoin’s use on the DarkNet…Everybody KNOWS they are talking about the Silk Road…which was closed up & the Innovator ‘jailed’ because Silk Road was dealing in ‘drugs'(How dare They thwart that Decades Old Drug War!) & also just about ANY kind of Armaments you might desire! I am so SICK & TIRED of This Backwards Nation of Ours wanting to be Left in the Dust! Banks want to control Bitcoin the same way they control ‘fiat’ currency…When we Talk Dollars…Most Dollars are trapped up into Credit/Debit system! You convert your Dollars to Paper just to use the Money!…IMNSHO…Bitcoin is more stable because it can be transferred into any medium!…Not just Dollars…Bitcoin can be converted to precious metals like Gold(Swiss Francs, Krugerands Or straight out Ingots)…Silver…Gems…Jewelry or just about ANYTHING You may desire! With All the BS they’ve been doing lately the USD could take a pounding anytime soon! but bitcoin holds its value! Bitcoins are the ultimate ‘hedge’, because its value steadily increases! That’ why Banks want it!

  • Gary Sachs

    Bankers seem to be legalised gangsters paying miniscual interest rates…go btc!

    • It is interesting how they pay me almost 0.0% APR for my savings but I sure don’t have that low an APR for any type of bank loan ;).

  • Ian O’Neill

    The catch all word most applicable when working successfully with crypto currency is ‘peace’. Bankers unknown and known, systems we labor under including fractional reserve, and the anger expressed in frustration and sorrow as legacy financial systems inexorably to wind down into an end game, are a reflection of the soul of humanity, not ‘us vs them’. The task before us is to recognize the alternative, the signal moment given by the practicality of blockchain technology, which, I predict, will prove corruptible like any other, and to pose the question ‘do we want to live?’ If so, how do we want to live? Like an addict who wakes up on the front lawn at 6am without any memory of how they got there, society is being sent a message with the advent of the reorganization of finance.

  • Liberty88

    Uh, no. Mr Banker – you CANNOT ‘get involved.’
    Bitcoin holders are their own banker…. That, to me, is the neatest thing to come along in ages. That we have a currency that deflates and becomes more valuable (vs. fiat) is a good thing.

  • DigiDragon

    Crying All The Way to the…LMFAO – no longer. I just signed up for OCASH and I am cutting up my bank card once it arrives. Bye bye bastards and your interest rates that have kept me a slave for so long…

  • will be hard for the banks to embrace transparency. so, i say “so long monopoly”! Peer to peer money and business are here to stay.

  • mangard

    Banks will always be there. Banks are necessary to supply cash liquidity and credit to make the economy run. Bitcoin holders are not expert enough to safely allocate capital to credit worthy enterprises. That’s what banks do.

    You can’t create new bitcoin to loan out like a bank can with dollars using the fractional reserve system. Think of bitcoin as gold coins and consider the problems gold created with liquidity when it was the only money available. There just wasn’t enough of it to create new investment.

    If everyone was paid in bitcoin and they kept their savings on their Trezors there would be a another great depression.

    • HairyHerry

      Your last sentence is irrational for one simple reason. If Bitcoin were accepted in such universal fashion, the value would explode and there would be way less BTC on Trezors as a whole, especially if Bitcoin’s scalability improves later this year. Hodlers would readily invest their coins in some manner and many would be millionaires in terms of today’s decimated dollars. The fractional reserve system is both a boom and pox on the system. If it were so good, why is a Fed Res dollar from 1913 worth a mere 4 pennies today? Although many of your points are valid, many outside of the System are fed up with the Fed! We’re tired of ridiculous Suspicious Activity Reports which banks are required and encouraged to file, lest they lose their Fed access and charter. We’re also sick of being offered an umbrella on these hot summer days, only for the bankers to take them back when the thunderstorm closes in. You want an example? The ’08 crisis and that so many who were lent additional credit card limits had those shaven down, causing an unwarranted lowering of FICO scores including mine! If you were affected, you should be mad too!

      • mangard

        “If Bitcoin were accepted in such universal fashion, the value would explode…” let’s talk about reality, after the price of bitcoin has stabilized and the hodlers have already invested their bitcoin billions. There are a billion workers in the world economy who were not hodlers. Let’s say one of them is paid $100,000 a year in bitcoin. The way the economy functions now is that the worker deposits his excess after living expenses into savings accounts which is used by the banks as leverage to make loans that may be several times the value of the workers original deposit. Since bitcoin is the official currency and cannot be created out of thin air like dollars, the question remains where does the additional needed liquidity come from. The bank’s bitcoin deposits (the workers original deposits) is not enough on its own to satisfy credit the demands of all the banks customers.

  • HairyHerry

    Am glad the Panhandle is on board with this! ANB’s Dodson is somewhat clueless! Nobody in the cryptosphere gives much credence to what a handful of criminals did sometime back. I don’t see Ross William Ulbricht getting any slack anytime soon, y’all! The question I have for Stewart: “What ‘digital currency’ do you suspect we will be a part of? The type mandated by a gun being put to our heads and the blockchain being controlled by the government and YOU, sir?” I will conclude that Mr. Laur is spot-on. Banks are at serious risk of being irrelevant as the Fake News on CNN, and for some of the same reasons!

    • You guys are all so optimistic. I don’t think you realize how much existing economic structure would be in upheaval were this fantasy to happen (banking all go down and unregulated, decentralized cryptocurrency take it’s place). The world would literally have to collapse first. Most people and businesses depend on banking. If you say, “Not me!”, then that’s great for you, but the rest of us are highly entangled in this existing economic system. And that isn’t something we chose, it was more forced upon us, as the only viable option, as ‘the’ way forward.

      • Nate Nivens

        There is ALWAYS a choice… Some choices are just easier than others.

  • Nate Nivens

    “shady roots of bitcoin will be a deterrent for future adoption.” I think not… How many times has the US Dollar been used in drug deals? MANY. What long term “consequence” has this caused for the US Dollar? Zip, nada, none… It’s not Bitcoin’s fault that certain people have used it for “dark” purposes… Money – like guns – has always been used for good and evil. It’s the people using the tools – not the tools themselves. Bitcoin will be just fine.