Is it a Matter of Time Before Banks Start Offering Cryptocurrency Services?
Despite the current price drop seeing Bitcoin down over 5%, it’s safe to say we are seeing the world acknowledge money 2.0. We have the Internet of Things, but now the Internet of value is taking form and creating a serious emerging sector.
Institutions like Fidelity are mining cryptocurrencies as they enter the space and build out their new platforms. Central banks and technology companies are launching their own digital currencies to streamline payments and provide their user bases with greater services.
Everyone is developing their own digital currencies! The benefits of blockchain technology are becoming more apparent. One of the greatest attractions is the ability to store and monitor the data of millions of users, and Facebook already showed how easily our data can be monitored.
In recent news, mega banks are allegedly becoming more bullish on Bitcoin. Goldman Sachs is even setting bullish price targets, while also highlighting that a pullback on Bitcoin could provide an “opportunity to buy on weakness” as long as Bitcoin holds above $9,000.
Authorities Running Bitcoin Nodes Could Prompt Others to Do the Same?
One of the key drivers for financial institutions gaining a foothold in the cryptocurrency sector is the regulatory clarity. The SEC has taken on the task of cleaning up the unregulated and somewhat unpredictable digital asset markets.
Earlier this month, we found out from an official announcement by the SEC that the U.S. regulator will be running nodes on the blockchains of BTC, ETH, XRP, and other popular coins in an attempt to create a blockchain analytics program.
Authorities running nodes doesn’t impact the growth or security of your favorite cryptocurrency. In fact, it helps secure the ledger, and anyone can run a BTC, ETH, XRP, or other cryptocurrency node.
There are also various Websites that offer data reporting, allowing anyone to view the latest activity on all the blockchains. By running a fully up-to-date node, the user must download the software of the respective blockchain and have current records of every operation performed on the network.
Financial institutions and payment processors that seek to use ledger technology could run a fully synchronized node to offer up-to-date financial services to their user base. Cryptocurrency wallet provider Ledger does something similar so that users can connect to it via their devices.
In an attempt to keep up with innovation, it’s likely that banks will do similar in the future as technology continues to streamline how we send and receive money.
This is not investment advice; please always do thorough research and only invest what you are willing to lose, especially in times of uncertainty.