Crypto banks are turning into a reality as regulators work nearer with blockchain firms, huge things are in store when the fiat and crypto economies impact.
Bitcoin once guaranteed that it would help understand the grand objective of making people “their own bank.” To comprehend the numerous administrations that banks genuinely give is likewise to acknowledge how outrageous this case was in 2008, when Bitcoin’s white paper made it. Over 10 years after the fact, the granddad digital currency is still on the peripheries of conventional money, yet the decentralized business that it has brought forth can without a doubt recreate numerous monetary administrations on the blockchain, which were all previously only in the domain of banks.
The price of Bitcoin (BTC) is up 5% in the past 24 hours and currently trades at $9,600 after reaching a daily high at $9,664. The overnight increase in BTC coincides with an unexpected decision from the Office of the Comptroller of the Currency (OCC).
On July 22, the OCC said banks in the U.S. are allowed to hold cryptocurrencies. It essentially gave the green light to bank-operated crypto custodial services.
Within a day of the announcement, the cryptocurrency market surged. In tandem with BTC, Ether (ETH) also saw a substantial rally, as the price rose by 12%.
“From safe-deposit boxes to virtual vaults, we must ensure banks can meet the financial services needs of their customers today," said Acting Comptroller of the Currency Brian P. Brooks. “This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.”
And while there are differences between fiat and cryptocurrency, the need to protect one’s financial wealth is the same. Currently those holding cryptocurrency can keep their cryptocurrency in a digital wallet, with an exchange or for higher net worth individuals, a Trust Company. The OCC’s statements are incredibly helpful in providing assurances to banks that they can pursue this line of cryptocurrency custodial service.