State-owned banks in Texas to be allowed to store Bitcoin for their customers
The Texas Department of Banking has announced a new update that will facilitate the further introduction of cryptocurrency in the state. In the update, the department mentioned that state-owned charter banks will now help their customers to store their cryptocurrency.
Banking and Cryptocurrency services
Since this already looks like a big victory for crypto enthusiasts and traders, the department’s position on cryptocurrency remains unchanged, despite the update. In its statement, the department mentioned that crypto-asset traders have been offered services to protect their digital assets by charter banks for a long time.
The department also mentioned that storing digital assets will be slightly different from how banks store physical cash. This new development will allow banks to obtain their customers ‘private keys, or store their customers’ digital assets in a wallet that they control.
The department even went further, indicating that banks are allowed to use external service providers with experience in storing cryptocurrency.11
The statement says that if any user requests their assets, they should be provided to them immediately. State charters are slightly different from their federal counterparts, since they are allowed to choose who they offer their services to. However, since 1999, Texas charters have been providing services on a par with national banks.
This means that according to the state charter, the state is allowed to provide services that will be provided by a national organization, which makes the state an ideal place for investment. Texas also has the highest concentration of banks in the United States, second only to California.
But if in America the crypt is included in the banking service, then in the foggy Albion the rhetoric towards the crypt has not changed.
Central Bank of England: Bitcoin will never replace money
In the last few years, many people around the world have ventured into the cryptocurrency market, trading this or that digital asset. Widespread use gives people more and more confidence in using cryptocurrency, and often people claim that it is a substitute for physical money.
However, some influential figures from the world of traditional finance and banking could not agree with this. This is a recent analysis made by the governor of the Bank of England, Andrew Bailey. In it, he stated that people should never accept digital assets for cash.
Although the manager is not such a dock in digital assets, he added that stablecoins can become an important addition in the financial sector. In a speech that Bailey delivered at the TheCityUK conference, he predicted that companies in the FinTech sector will witness what he called tough love in the coming years. He went even further, and stated that he foresaw a United Kingdom with a huge amount of innovation.
Bailey also said that the UK is currently studying stablecoins linked to fiat currencies. He admitted that they are starting to think about creating their own digital currency of the Central Bank. Although the country is concerned about creating its own CBDC, Bailey also issued another warning to crypto asset traders across the country about the dangers of trading coins such as Bitcoin.
He also pointed out that the term “cryptocurrency” is misleading, since crypto assets do not have legal support, and do not have any intrinsic value. The head of the Bank of England also said that he has met with many crypto enthusiasts who have mentioned that they would prefer an asset that is not backed by anything rather than an asset backed by the state, but Bailey does not believe in this argument.