[ad_1]
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please review our website policy before making any financial decisions.
The cryptocurrency’s current total market capitalization is over US $ 2.2 trillion, recently surpassing that of Apple, Amazon and Google. The still emerging asset class of virtual currencies carries high risk and volatility.
With so much money continuing to flow into the industry, government acceptance and intervention is inevitable. As the cryptocurrency space continues to grow, it will be essential for governments to work with institutions and individuals to make investing safer for everyone involved.
Texas Banks Keep Crypto Investors Safe
Following the recent wave of government interest and adoption in Bitcoin, the Texas Department of Banking has just announced that state chartered banks will be allowed to offer digital asset custody services. This is amazing for investors because they will be able to own digital assets without facing most of the risks of virtual investments.
Tweet: https://twitter.com/GregAbbott_TX/status/1400971477051133956
In the Texas Department of Banking Industry opinion, officials pointed out the details that customers and banks should consider when deciding to go into business together, as well as the need for a safe place to keep the records. digital assets. The report then goes on to explain how crypto holdings will fall under current Texas laws and how seriously security needs to be taken.
The banking system is an essential part of the global financial economy, providing various services to individuals and institutions. Hackers and scams are among the main risks of holding crypto, and the security of funds is the main aspect provided by banks. The integration of the two will certainly attract many new crypto investors, especially since the bank will most likely have insurance to protect the virtual currencies it holds for its customers.
Additionally, by allowing banks to hold cryptocurrencies for their customers, the federal government will be able to better understand where assets are going and how they are being used. While this adoption of crypto may remove an element of anonymity provided by decentralization, it will make the asset class more mainstream.
It would be remiss not to mention the irony of banks holding custody of cryptocurrencies for customers, as BTC was really created to act as a new financial system. BTC was created during the 2008 financial crisis with the idea that the central authority and the banks were letting the people down. In the Bitcoins genesis block, the creator, Satoshi Nakamoto, coded a massage to last forever on his blockchain:
The Times 03 / Jan / 2009 Chancellor on the verge of securing second bailout for banks.
Join our Telegram group and stay connected to all things crypto, DeFi, and finance.
Texans can easily escape inflation
Rising consumer prices and high inflation are two major issues facing the United States as the economy recovers from the pandemic. Supply chain disruptions and government stimulus plans continue to have an impact, with prices rising faster than since 2008.
As inflation presents the risk of reducing cash savings, investors begin to look for ways to hedge against uncertainty. Historically, gold has been the primary asset used to exit fiat currencies, but now digital assets present a new opportunity. By passing this new legislation, Texas is giving its citizens a huge opportunity to use cryptocurrencies to avoid inflation and keep their coins safe in banks.
Finances in five minutes
An email every Friday, everything that matters in the new era of finance.
Sign up for free Awesome! You are subscribed.
You’re on your way to being in the know.
Historically, banks and cryptocurrencies have been adversaries, but now it looks like the two have the option of working together. How will banks providing crypto custody services change the risks associated with digital assets? Let us know in the comments.
About the Author
Tim Fries is the co-founder of The Tokenist. He has a BSc in Mechanical Engineering from the University of Michigan and an MBA from the Booth School of Business at the University of Chicago. Tim was a Senior Associate in the investment team of RW Baird’s US Private Equity division and is also a co-founder of Protective Technologies Capital, an investment firm specializing in detection, protection and protection solutions. control.
[ad_2]
picture credit