There are two parts of the story. One is good and another one is bad. Let me explain in details,

The good part:
1. Crypto will become mainstream with banks offering crypto services.
2. Stores and merchants will be interested in accepting cryptos as a medium of exchange
3. Increase in credibility of cryptos
4. Chance of indemnity in case of a hack

The bad part:
1. The banks will have information about your crypto holding and your KYC data
2. Your crypto holdings will be reported to IRS periodically
3. Banks will control your crypto holding so you will essentially loose the control over your own money that you used to enjoy earlier with your own private key
4. Nothing you can hide from the government if you opt for crypto banking service.

So choose wisely before you cheer about it!

This is not a good decision for customers, if they want to go that route..

Banks have show in the past that not even your safe deposit boxes are safe and untouchable (Example : https://www.qwealthreport.com/safe-deposit-raids-governments-out-of-control/

Did you know this? ---> https://pivotalperformanceprocesses.com/government-raided-safe-deposit-boxes-1930-gold-confiscation/ and I quote, "The Government Raided Safe-Deposit Boxes to Confiscate Gold During the 1930s."

So what do you think will happen to bitcoins that are stored at centralized Banks, if a corrupt government wants to seize it? The Gold seized was in the US, not some 3rd world country.  

Though I'm definitely not advocating for this and I'm definitely not saying that we should trust the banks to hold our keys, not sure why you would compare something they're storing physically, to something digital though. Unless they're going to store the coins through physical paper wallets LOL.

I am wondering, why should I store my bitcoin to the banks? Am I not my own bank? Just assume it would keep role bitcoin adoption, but besides that, it would freeze your bitcoin as well. And obviously, the most disadvantage is you are exposing yourself as a bitcoin user. Perhaps buy-sell via bank is something positive in my opinion. But storing my bitcoin there isn't a wise decision. Even I am not encouraged to get loans or staking my bitcoin with the bank. Maintenance fees would be high as well. I am pretty sure any big holders will not store their bitcoin into the bank. But overall it's a positive move for bitcoin adoption.

From many investor’s perspective, it does make sense. From most forum member’s perspective, it doesn’t. People here on the Forum are used to "being their own bank" to a certain degree, and more or less understand what it entails in terms of wallets, security and ownership.

Nevertheless, there are many investors out there that would probably ponder investing some amount in Bitcoin, without having to go on to understanding a bunch of technicalities that are behind being their own bank, and beyond their comprehension. They are used to having the bank being their custodial, and would accept a similar solution to their Bitcoin custody. The fineprint here would be paramount to read and understand, in order to get to know the bank’s degree of liable responsibility and guarantees.

It’s not my piece of cake, but I get why it can be that of others with different backgrounds and investment habits.

Let me just clarify one thing here, the banks are allowing their clients to hold some BTC on their accounts with the bank? Well, this is not usually as we know banks are not crypto-friendly but what is exactly going on here man? I don't know if it is good or not cause this not what I am expecting for the banks. guess things has changed now and they will have some planned with cryptocurrencies. The only problem here is how they will handle the volatility of the price do they have some plans on the unknown movement of the price in the crypto market?

Wait a second what exactly do you mean by this? Do you mean that i can write my private key on a piece of paper and keep it in the safe box of a bank because that was pretty much legal always. Or do you mean that bank will control my bitcoin and I have to give them the private key or transfer them possession. Because the later seems pretty scary to me. What is the point of having a bitcoin when you are going to safeguard it by a bank. Lol isn't the ironical? Or is it only me who found some irony in this?

Of course I don't want it either, hence I hold my coins in self-custody. But then again, there are A LOT of other people out there outside our tech-savvy cryptocurrency bubble group that might want to take advantage of bitcoin's market characteristics(not necessarily the privacy and sovereignty characteristics).

The point here is freedom of choice. If they want to go let the banks hold their bitcoin knowing the risks, then let them. Doesn't mean that we also should follow suit.

Wonder what's the real motive behind this. To increase their surveillance over individual wealth? Hmm. I won't use this nor support people to do this, you could hold bitcoin on your own wallet and cash out without giving stuff like KYC. Why do I feel that banks are gonna compete with exchanges now.