Canadian Banks See Bitcoin as Threat; Close Accounts for Exchanges


Panama City, Panama -- (SBWIRE) -- 04/26/2013 -- The threat posed by bitcoin has concerned Canadian banks; that they have closed the accounts of companies involved in the operation of bitcoin exchanges.

Allison from was quoted as saying, "They are not comfortable with bitcoin business at this time… RBC Bank has decided to close our account.”

BMO, Scotiabank and CIBC are expected to follow the lead set by both RBC and TD Bank.

Cavritex is a Canadian bitcoin exchange where people can trade government-backed currency for this virtual currency.

"Banks should certainly feel threatened by this new virtual currency, as bitcoins will soon replace the need for banks to transfer money across borders. Bitcoin will revolutionize the banking industry, just like Bittorrent changed the video and music industry,” said Melvin Ng, a partner in, another exchange where Canadians can buy and sell bitcoins and exchange Canadian cash for bitcoins.

“The Internet is a global marketplace. It needs a global currency. Why should someone in Manila have to figure out the exchange rate to buy something from a merchant in London?” he said. “With Bitcoins, there’s no need to think about an exchange rate, how to get currency switched and how much a money changer is going to pocket when swapping one currency for another.”

Another chief advantage of bitcoin is that it is not backed by a government.

Bitcoin value is directly driven by the world market.

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