Not only banks but even government are facing crisis when they are describing bitcoins. They are arguing if bitcoin is a currency or a commodity/property. That is only on the level of definition but how about on the whole currency and its technology that would be more complicated. But I am happy that the central bank of the Philippines has acknowledge bitcoin as a payment system.

we keep saying bitcoin is money (and it really is) but in reality bitcoin is used mostly as a commodity and if I am not mistaken in US bitcoin is considered a commodity when it comes to the law. and there is not much dilemma here.

this one is not at all a dilemma!
a bitcoin exchange like a forex exchange, a stock exchange, or simply it is like any other business and dealing with it is the same as dealing with any other business that deals with fiat.
I really don't see how can this be any problem.

this one is a challenge, it can be done but it is getting harder as bitcoin popularity grows and the number of exchanges all over the world increases.

I believe the question in this one is "why would they want to do that?" "what would be the befit of it?" or "what is the motivation of controlling the price?!"
government is concerned with legal/illegal things people do with bitcoin and fiat since they are connected through an exchange. such as money laundering and other illegal activities. and whether bitcoin price is $1000 or $0.01 all these things can be done. so there is no point in controlling the price.

Probably you should check out the original post: http://news.8btc.com/central-bank-face-3-dilemmas-when-dealing-with-bitcoin

1. I bought a lot of different goods with Bitcoin and I earn Bitcoin with services that I provide. So: Yes, Bitcoin is money to me.


2. and 3. They can control some of the world wide operating Exchanges, but they won't be able to do that here: https://bitsquare.io/

Dilemma 1: Bitcoin is not a currency only but a commodity so I will say it's a currency and commodity at the same time.
Dilemma 2: you deal with Bitcoin exchanges by opening your own exchange to counter the status quo.
Dilemma 3: you don't control Bitcoin prices through exchanges  if you don't have an exchange

Hello Red Li, who is Jiangzhuo'er?

It is a store of value and a medium of exchange, but not a legal tender as it is not issued by any authority. So, it can be used as 'money', but not a 'currency'.

Only FIAT part can be dealt with and be regulated. Enforcing KYC is the best option from Government's point of view.

Bitcoin's price is NOT determined in one country's exchanges. So, no government will be able to control bitcoin price.

Bitsquare requires VPN to log on in China. And VPN provider need to comply with regulations as well in China by the end of 2017.

China just banned all unauthorized VPN providers https://thenextweb.com/asia/2017/01/24/china-cracks-domestic-vpn-usage/

To be honest Bitcoin is not actually a currency because it doesnt have any rules or regulation to control it Its neither private nor govermental property, secondly it is just a digital value exchange medium and many websites and articles had published that it is a digital assetand have particular value.

If bank want to cooperate with people who use bitcoin, they must leave the dilemmas and follow what the customer want.