Hal Finney’s 2010 “Bitcoin Backed Banks” Prediction Is Coming True Now

The famous cryptographer Hal Finney made a rough prediction for Bitcoin in 2010, which is coming true in 2025. He was a renowned cryptographer and the first recipient of a Bitcoin transaction from Satoshi Nakamoto himself. Now his 15-year-old prediction of the formation of Bitcoin-backed banks someday is gaining traction as institutions are finally doing it.

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.