European Central Bank President: Banks Could Soon Hold Bitcoin
Buying Your Bitcoin From a Bank?
Not having news is good, and the cryptocurrency markets have been oddly quiet in the last week. As the primary market influencer, Bitcoin has tested the upper $8,000 region multiple times while maintaining a price above $7,600.
While the positive outcome from the recent SEC/CFTC hearing has eased the fear, another influential figure has made a statement about Bitcoin and the cryptocurrency market overall.
As cryptocurrencies and ICOs become a serious component in the financial landscape, Mario Draghi, president of the European Central Bank, stated:
“Recent developments, such as the listing of Bitcoin futures contracts by US exchanges, could lead European banks too to hold positions in Bitcoin, and therefore we will certainly look at that.”
It’s an interesting, yet powerful statement. It was only in late 2017 that Draghi admitted that banks have no power to regulate Bitcoin!
The question now is: are banks secretly buying flagship cryptocurrencies? Are they innovating while the rest of the markets panic and sell off their digital assets?
Blockchain Patents – They Innovate While the 80% Panic
It’s no secret that cryptocurrencies and blockchain technology can give the financial sector everything it wants in an automated fashion: data, speed, cost-efficiency, network security, and full control overall.
Pandora’s box has opened, and we see an increasing amount of blockchain patents being issued not just to blockchain-based companies, but to well-established financial institutions as well.
The image below shows a list of blockchain patents from Bank of America alone. Could we see banks running their own nodes on the blockchain or start using smart contracts to build the next generation of downloadable banking apps?
With our local banks providing cryptocurrency services and secure storage options, an influx of capital could enter the space that was previously too afraid to tread in the unregulated markets.
Is Draghi hinting at something more with his statements? History will be the judge, but always remember to conduct full research before investing and only use funds you are willing to lose!