This article explores Hal Finney's ideas about potential Bitcoin banks and their implications for the financial ecosystem.
Who was Hal Finney and what did he think about Bitcoin banks?
Hal Finney was a veteran of the cypherpunk community, dealing with online privacy solutions. He was the first recipient of a BTC transaction from Satoshi Nakamoto. In December 2010, Finney initiated a discussion on the Bitcointalk forum regarding the conceptualization of Bitcoin banks, stating that these banks could issue Bitcoin-redeemable digital cash for facilitating transactions since Bitcoin itself is not an efficient medium of exchange.
Was he talking about Bitcoin treasuries?
In 2025, Joe Burnett, CEO of Bitcoin Strategy, referred to Finney's post and suggested he foresaw the rise of Bitcoin treasury companies. However, George Selgin clarified that Finney's foresight pertained to banking institutions issuing BItcoin-backed IOUs, not treasury companies, highlighting a distinct difference in function.
Do Bitcoin banks exist today?
Although Finney's described Bitcoin banks do not exist yet, certain financial institutions embody some characteristics of Bitcoin banks. For example, some banks create treasuries to accumulate Bitcoin as a hedge against fiat currency devaluation. Moreover, the altcoin market reflects the idea of second-layer payment systems with various digital currencies.
Hal Finney's vision for Bitcoin banks remains relevant, though their forms and functions have evolved in the current financial landscape. The future may hold potential for their emergence, but as of now, they do not exist.
