Here's yet another sign that bitcoin is a legit currency: A new bank for bitcoin is up and running at Bitcoin-Central.net. With euro signs in its eyes, French bitcoin exchange Paymium says it plans to regulate and institutionalize the crypto-currency with Bitcoin Central, bringing along insurance standards guaranteed by the French version of FDIC. My eyebrow just hit the ceiling.Regulating bitcoin? Banking it? Issuing bank cards? Gaining 'attractivity' from second and third-round investors? It's a classic sell-out story cruising along under some shield of financial nerdery. That bitcoin is money, and money is bitcoin, seems to have led these determined guys into the savagery of orthodox financial standards. In itself, the very idea of a centralized, compliant, investment-seizing bitcoin bank defies the earliest notions of the untraceable currency. Just have a look at some of Bitcoin Central's boasted advantages, as posted in an announcement:
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- Each user will soon be able to order its own debit card that will use their EUR and BTC balance to honor purchases and cash withdrawals
- We'll have direct access to the banking networks which will let us 100% automate all incoming and outgoing transfers
- Corporations will have an actual financial institution talking with them if they wish to start accepting Bitcoin and be safe from a regulatory point of view
- Paymium will have a much better legal standing and a much higher attractivity for second and third-round investors