diff --git a/README.md b/README.md
index 028b43602740..65b68d777b37 100644
--- a/README.md
+++ b/README.md
@@ -83,8 +83,6 @@ bitcoind -daemon -testnet
 ```
 
 Wait until `bitcoind` has synchronized with the testnet network.
-In case you use regtest, make sure you generate at least 432 blocks to
-activate SegWit.
 
 Make sure that you do not have `walletbroadcast=0` in your
 `~/.bitcoin/bitcoin.conf`, or you may run into trouble.
diff --git a/contrib/Dockerfile.builder b/contrib/Dockerfile.builder
index 4b6f83552710..bf00f6579522 100644
--- a/contrib/Dockerfile.builder
+++ b/contrib/Dockerfile.builder
@@ -2,6 +2,7 @@ FROM ubuntu:16.04
 MAINTAINER Christian Decker <decker.christian@gmail.com>
 
 ENV DEBIAN_FRONTEND noninteractive
+ENV BITCOIN_VERSION 0.16.0
 WORKDIR /build
 
 RUN apt-get -qq update && \
@@ -30,10 +31,10 @@ RUN apt-get -qq update && \
 	rm -rf /var/lib/apt/lists/*
 
 RUN cd /tmp/ && \
-    wget https://bitcoin.org/bin/bitcoin-core-0.15.1/bitcoin-0.15.1-x86_64-linux-gnu.tar.gz -O bitcoin.tar.gz && \
+    wget https://bitcoin.org/bin/bitcoin-core-$BITCOIN_VERSION/bitcoin-$BITCOIN_VERSION-x86_64-linux-gnu.tar.gz -O bitcoin.tar.gz && \
     tar -xvzf bitcoin.tar.gz && \
-    mv /tmp/bitcoin-0.15.1/bin/bitcoin* /usr/local/bin/ && \
-    rm -rf bitcoin.tar.gz /tmp/bitcoin-0.15.1
+    mv /tmp/bitcoin-$BITCOIN_VERSION/bin/bitcoin* /usr/local/bin/ && \
+    rm -rf bitcoin.tar.gz /tmp/bitcoin-$BITCOIN_VERSION
 
 RUN pip3 install --upgrade pip && \
     pip3 install python-bitcoinlib==0.7.0 pytest==3.0.5 setuptools==36.6.0 pytest-test-groups==1.0.3 flake8==3.5.0 pytest-rerunfailures==3.1
diff --git a/contrib/Dockerfile.builder.i386 b/contrib/Dockerfile.builder.i386
index 79ebfa00a90c..7f4b9d517aa1 100644
--- a/contrib/Dockerfile.builder.i386
+++ b/contrib/Dockerfile.builder.i386
@@ -2,6 +2,7 @@ FROM i386/ubuntu:16.04
 MAINTAINER Christian Decker <decker.christian@gmail.com>
 
 ENV DEBIAN_FRONTEND noninteractive
+ENV BITCOIN_VERSION 0.16.0
 WORKDIR /build
 
 RUN apt-get -qq update && \
@@ -30,10 +31,10 @@ RUN apt-get -qq update && \
 	rm -rf /var/lib/apt/lists/*
 
 RUN cd /tmp/ && \
-    wget https://bitcoin.org/bin/bitcoin-core-0.15.1/bitcoin-0.15.1-i686-pc-linux-gnu.tar.gz -O bitcoin.tar.gz && \
+    wget https://bitcoin.org/bin/bitcoin-core-$BITCOIN_VERSION/bitcoin-$BITCOIN_VERSION-i686-pc-linux-gnu.tar.gz -O bitcoin.tar.gz && \
     tar -xvzf bitcoin.tar.gz && \
-    mv /tmp/bitcoin-0.15.1/bin/bitcoin* /usr/local/bin/ && \
-    rm -rf bitcoin.tar.gz /tmp/bitcoin-0.15.1
+    mv /tmp/bitcoin-$BITCOIN_VERSION/bin/bitcoin* /usr/local/bin/ && \
+    rm -rf bitcoin.tar.gz /tmp/bitcoin-$BITCOIN_VERSION
 
 RUN pip3 install --upgrade pip && \
     pip3 install python-bitcoinlib==0.7.0 pytest==3.0.5 setuptools==36.6.0 pytest-test-groups==1.0.3 flake8==3.5.0 pytest-rerunfailures==3.1
diff --git a/tests/test_lightningd.py b/tests/test_lightningd.py
index 0babf78beb3b..35c4a3f017c0 100644
--- a/tests/test_lightningd.py
+++ b/tests/test_lightningd.py
@@ -50,11 +50,17 @@ def setupBitcoind(directory):
         teardown_bitcoind()
         raise
 
+    info = bitcoind.rpc.getnetworkinfo()
+
+    if info['version'] < 160000:
+        bitcoind.rpc.stop()
+        raise ValueError("bitcoind is too old. At least version 16000 (v0.16.0)"
+                         " is needed, current version is {}".format(info['version']))
+
     info = bitcoind.rpc.getblockchaininfo()
-    # Make sure we have segwit and some funds
-    if info['blocks'] < 432:
-        logging.debug("SegWit not active, generating some more blocks")
-        bitcoind.generate_block(432 - info['blocks'])
+    # Make sure we have some spendable funds
+    if info['blocks'] < 101:
+        bitcoind.generate_block(101 - info['blocks'])
     elif bitcoind.rpc.getwalletinfo()['balance'] < 1:
         logging.debug("Insufficient balance, generating 1 block")
         bitcoind.generate_block(1)
@@ -2715,7 +2721,7 @@ def test_closing_negotiation_reconnect(self):
         l2.daemon.wait_for_logs(['sendrawtx exit 0', ' to CLOSINGD_COMPLETE'])
         assert l1.bitcoin.rpc.getmempoolinfo()['size'] == 1
 
-    @unittest.skip("FIXME: needs bitcoind 0.16")
+    @unittest.skipIf(not DEVELOPER, "needs DEVELOPER=1")
     def test_bech32_funding(self):
         # Don't get any funds from previous runs.
         l1 = self.node_factory.get_node(random_hsm=True)
@@ -3326,10 +3332,10 @@ def test_channel_reenable(self):
         l2.daemon.start()
 
         # Now they should sync and re-establish again
-        l1.daemon.wait_for_logs(['Received channel_update for channel 434:1:1.1.',
-                                 'Received channel_update for channel 434:1:1.0.'])
-        l2.daemon.wait_for_logs(['Received channel_update for channel 434:1:1.1.',
-                                 'Received channel_update for channel 434:1:1.0.'])
+        l1.daemon.wait_for_logs(['Received channel_update for channel \\d+:1:1.1.',
+                                 'Received channel_update for channel \\d+:1:1.0.'])
+        l2.daemon.wait_for_logs(['Received channel_update for channel \\d+:1:1.1.',
+                                 'Received channel_update for channel \\d+:1:1.0.'])
         wait_for(lambda: [c['active'] for c in l1.rpc.listchannels()['channels']] == [True, True])
 
     @unittest.skipIf(not DEVELOPER, "needs DEVELOPER=1")