Hal Finney, the famous cryptographer and the first ever recipient of a Bitcoin transaction, foresaw a prominent future for BTC. In 2010, he envisioned the development of Bitcoin-backed banks and the status of BTC beyond a mere asset. Now, after fifteen years, that prediction is taking shape in 2015.
What Did Hal Finney Predict in 2010?
In 2010, Hal Finney outlined the limitations of Bitcoin, the biggest digital asset today. In a December 30 Bitcointalk forum post, Finney pointed out that BTC isn’t scalable enough to handle every transaction in the world. However, this wouldn’t stop it, as there’s a prominent solution per the post.
Finney envisioned that BTC would serve as a base money, and Bitcoin-backed banks could emerge to address these limitations.
“Bitcoin-backed banks will solve these problems… They can work like banks did before the nationalization of currency.”
Finney believes that these BTC-backed banks could act like the historical gold banks and use a 100% reserve or even a fractional reserve. He envisioned Bitcoin as not being directly sold but instead becoming a reserve asset.
Ermor and Other Bitcoin-Backed Developments in 2025
From 2010 to 2025, Bitcoin-based banks are coming from theory to potential reality. Hal Finney’s vision has already materialized in multiple layers, such as Bitcoin custody and ETFs. The ETF issuers hold BTC in their cold storage and allow investors to invest without directly holding the asset. This aligns with Finney’s model of BTC-backed digital credits.
The Fintech platform holding BTC reserves and the issuance of the stablecoins is also a part of that. However, the most parallel move is the development of digital banks like Erebor, KBC Bank (Belgium), and others.
Recently, tech heavyweights Peter Thiel’s Fund and other technology billionaires have revealed their plans to launch a U.S.-backed bank called Erebor with Bitcoin and a stablecoin at the center.
They are applying for the national banker charter and intend to hold stablecoin, like Finney predicted. Notably, Ripple has applied for a banking license, and many others are on the same trajectory. Soon, the Bitcoin-backed banks could become a reality.
Why Hal Finney’s Bitcoin Prediction Matters?
Finney saw BTC beyond a tool for individual sovereignty. He accepted its limitation and figured out the method to deal with it. Now, as BTC has accomplished major milestones in the last 15 years, setting an ATH price milestone at $111k, global adoption, development of strategic reserve, and being called digital gold, only becoming a banking model is left, which is also underway.
Notably, Hal Finney predicted the future of Bitcoin that no one could have believed in 2010. Now it’s taking shape in 2025 with Ermor and other Bitcoin-backed banks.
Frequently Asked Questions (FAQs)
Hal Finney predicted that the rise of Bitcoin-backed banks would occur to address its scalability issues.
Finney believes that the banks would operate like historical gold banks, using 100% or fractional digital credits.
Peter Thiel supported Erebor being proposed; if approved, it will become a Bitcoin reserve bank.
Pooja Khardia
Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section.
Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights.
Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry.
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