US Regulator: Banks Must Be Allowed To Store Customers’ Bitcoin And Crypto
Not too long ago, it’s been announced that banks will have the ability to store customers’ Bitcoin and digital assets.
This was seen as a great thing, to begin with, but, on the other hand, some analysts said that the move defines the whole purpose of Bitcoin.
Banks should be able to store Bitcoin and crypto
According to the latest reports coming from the online publication the Daily Hodl, a top US regulator and acting comptroller of the currency Brian Brooks said that consumers should be able to store their Bitcoin and crypto in the bank.
During the recent LA Blockchain Summit, Brooks said that crypto is not nearly as much of a niche investment as many Americans might think.
“There are 40 or 50 million Americans who currently own crypto assets. That’s not widely understood. I think your average person on the street believes crypto is super unusual and really niche,” according to what he said.
He continued and explained, “But that’s really not so. And if the national banking system is going to play its role of providing a safe haven for people to store and transact value, then that has to include whatever financial assets people are holding at any given moment, and crypto is one of those.”
Banks may hold crypto
Back in July, the Office of the Comptroller of the Currency (OCC) released a letter stating that banks may hold crypto on behalf of their clients, and noted that they must “meet the financial services needs of their customers today… which today for tens of millions of Americans includes cryptocurrency.”
It’s been revealed that a few banks have expressed interest in the idea since then.
Brooks, who is a former executive of Coinbase, said that the goal of that specific letter was to “demystify” crypto.
“The custody piece recognizes that and tries to demystify [crypto] by saying, ‘Look, the market is speaking. These people want it. Banks have a role. Go do the banking role,’”he said.
He also addressed the future of decentralization, saying that the movement is unstoppable.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.