Banks in the United States can now hold cryptocurrency for their customers. What impact will this have on cryptocurrency markets and should you ever part with your keys?
This Wednesday, the Office of the Comptroller of the Currency informed banks they may now hold cryptocurrency for their customers. This move brings cryptocurrency a step closer to the mainstream.
If the past is anything to go by, this is likely to push up the value of cryptocurrencies as it opens the door to millions of new consumers who are not sophisticated enough to control their own cryptocurrency but still wish to own it. The price of Bitcoin jumped sharply immediately following the news.
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The price of Bitcoin rose sharply as news broke that banks can now hold cryptocurrency.
Our philosophy at Xcoins, however, has always been that every individual should have complete ownership and therefore, 100% control over their cryptocurrency. Many of the world's biggest big banks have a long history of involvement in fraud and mismanagement of their customers' money and the industry isn’t exactly lauded for its customer service. Furthermore, banks holding cryptocurrency opens new questions about whether this makes them responsible for monitoring how their customers spend their money.
Cryptocurrency offers financial freedom in the form of complete ownership of your money. To hand the keys back to the bank is to relinquish this. As the saying goes, “not your keys, not your crypto”.