Why Banks Are the Key to Crypto Adoption in the United States

Sunday 8 August 2020, 8:40 PM AEST - 1 week ago

While countries are recognizing cryptocurrencies as legitimate forms of currency, it seems that the future of crypto adoption has never been brighter.

Cryptocurrency is about to become more accessible, thanks to a new mandate by the United States Office of the Comptroller of Currency (OCC). Now, National Banks and Federal Savings Associations of all sizes can provide cryptocurrency custody to customers.

According to the letter, these spaces have had permission to store digital assets since 1998, and cryptocurrency will be an extension of that. Of course, this could mean more than just holding wallet keys, though that is the primary intent of the service. The point here is that banks recognize cryptocurrency as a valid vehicle for investment, considering theyre now willing to protect those who hold them.

This is a massive step forward for Americans in the crypto adoption space.

Before now, only specific businesses could hold cryptocurrency in custody. But as Nasdaq states, this could push massive corporations like Bank of America or Wells Fargo to provide cryptocurrency holding services to customers. If a bank offers these services, customers have much more reason to trust the often suspicious assets like Bitcoin.

While this letter doesnt change the inherent volatility of cryptocurrency, it will change the world of crypto education forever. Many who are scared to enter the nascent space can be assured of their options. It can be risky to invest in cryptocurrency, no doubt, but knowing the smartest ways to do so can bring in millions. Banks can hire knowledgeable workers to bring that information to their customers, educating the masses and bringing tons of money into space.

This isnt to mention that crypto startups can start to thrive in the United States, given that they can finally open up business bank accounts – a limiting factor before this mandate was put into place. So not only will bankers be educating users on cryptocurrency, but startups and other emerging businesses will too.

Its worth noting that this isnt necessarily the intent of

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