- Banco de Investimentos Globais (BiG) halts fiat transfers to cryptocurrency platforms, citing compliance with ECB, EBA, and Bank of Portugal regulations on digital asset risks.
- BiG’s move sparks debates as other Portuguese banks, like Caixa Geral de Depósitos, continue facilitating crypto transfers, raising questions about industry-wide adoption.
- Delphi Labs co-founder José Maria Macedo criticizes BiG’s decision, labeling it an abuse of power and advocating for wealth migration to blockchain technologies.
Banco de Investimentos Globais (BiG), one of Portugal’s leading banks, has become the talk of the crypto community for freezing fiat transfers to crypto platforms. A notification revealed by Delphi Labs co-founder José Maria Macedo unleashed heated discussions of regulatory compliance and the future of banking.
Macedo didn’t hold back in criticizing BiG’s move, stating:
“Crypto is inevitable, banks are dead, and these abuses of power will only redpill more ppl into moving their wealth on-chain.”
His comments reflect a broader frustration among crypto advocates, who view such restrictions as an attempt by traditional financial institutions to stifle innovation.
The notification cites adherence to guidelines from the European Central Bank (ECB), the European Banking Authority (EBA), and the Bank of Portugal. These regulations emphasize the risks associated with digital assets, including concerns over money laundering and terrorism financing. BiG reported nearly €7 billion in assets under management in 2023, equivalent to roughly $7.2 billion.
Interestingly, BiG is the only Portuguese bank that has taken such measures. Another user comment says that all other Portuguese banks, including Caixa Geral de Depósitos, the largest bank in Portugal, still allow fiat transfers to crypto platforms. This selective approach raises questions about whether BiG’s decision is a precursor to wider adoption or an isolated stance.
Crypto Growth Sparks Debate Among ECB Leaders
A series of publications by ECB economist Jürgen Schaaf, a vocal critic of Bitcoin, might also color the decision. Schaaf’s papers have highlighted various concerns about Bitcoin’s volatility, its environmental impact, and the lack of economic productivity that it supposedly creates. In February, Schaaf called the rise of Bitcoin above $50,000 a “dead cat bounce” caused by market manipulation. Since then, Bitcoin has continued to defy expectations, doubling in value to seal its position as the leading digital asset.
Schaaf has also expressed skepticism regarding the approval of spot Bitcoin ETFs in the US, insisting that they won’t legitimize Bitcoin as a secure investment. His calls for greater regulation, even banning Bitcoin, percolate through Europe.
While critics like Schaaf urge caution, other ECB voices, such as Piero Cipollone, highlight the potential of digital assets. Recently, Cipollone called for the EU to adopt distributed ledger technology (DLT) to cure the fragmentation of Europe’s capital markets- a more balanced approach to crypto adoption.
Moreover, BiG’s move to ban fiat transfers epitomizes increased friction between the classic banking ecosystem and the world of cryptocurrencies. Big might eventually yield compelling reasons for putting pressure on or banning access to crypto in view of increased regulation pressure strangling digital assets.
BiG’s move reminds us that the fight between centralized financial operators and decentralized technologies is far from over. Whether it will be part of a bigger trend or just an outlier depends on how other European banks and their regulators respond to the evolving crypto landscape.
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