Although cryptocurrency has raised several suspicions regarding the purpose of its existence in the past, slowly but gradually, it has found a place in nearly all forms of trade and commerce, becoming a part of the daily life of people. This popularity among the common masses has led to several Governments and banks considering to make cryptocurrencies- a part of their industry.
Previously, many banks have declared their policies of limiting the purchase of cryptocurrencies like Bitcoin through their credit cards. Apparently, these steps were taken as its acceptance is limited with the mainstream along with lofty risks of loss, volatility, and fraud innate in the cryptocurrency market.
Despite being known traditionally for being disinclined to risks, Central banks of many different countries have put in their support into the investigations for how blockchain technology can advance their operations. So now, many Central banks are looking into replacing cash with cryptocurrency.
A central bank digital currency (CBDC) is in plans of getting devised. With that, the digital money will be distributed by central banks which could be exchanged for the respective domestic fiat currencies and could be maintained on any number of blockchain networks. Whilst it would be Cryptoruble in Russia, in the case of an American central bank digital currency, it would be the US dollar. These digital currencies would offer a variety of different advantages.
As of now, a venture called Utility Settlement Coin (USC) has been joined by several major banks. This project will be responsible for aiding the issuance of currencies employing Blockchain technology by Central banks across the globe. Collateralized assets on a custom-built Blockchain of the USC platform will be helpful in synchronizing transactions amongst the International banks thus making things easier.
Credit Suisse, Barclays, CIBC, State Street, MUFG, and HSBC are among the new members of this venture as of late August 2017. This platform is in the final stages of testing and will be up for live implementation soon wherein new member banks will be participating.
Regarding this project, Hyder Jaffrey, the co-founder, and Head of Strategic Investment and Fintech of Utility Settlement Coin commented that for a future where the central banks worldwide will be using their own virtual currencies, this would be a springboard. He said,
It may well inform the way central banks choose to move things forward. We see it as a stepping stone to a future where central banks issue their own [cryptocurrency] at some point.
So let’s take a look at banks which are accepting Bitcoin and other cryptocurrencies currently:
Germany- Fidor Bank: This Bank has plans to work as a fully functioning altcoin bank by partnering up with Kraken.
Czech Republic- Worldcore: multi-currency accounts are offered by this Bank which can be accessed via debit and virtual cards.
Estonia- Change Bank: Change provides a wallet for the storage of altcoins, along with giving an altcoin spending card. It offers a market that will combine the best insurance and investment opportunities and investment placing them on a solitary platform.
United Kingdom- Bankera: Bankera is the right hand of SpectroCoin and seeks to become a fully-functional crypto bank providing all altcoin facilities.
United States- USAA: This was the first major bank to invest in cryptocurrency exchange.
Goldman Sachs: This bank had announced earlier that it would be soon launching an altcoin trading desk and will offer altcoin products.
Simple Bank: With collaborations with most bitcoin exchanges, Simple Bank allows a direct buy-sell transaction for bitcoin to the people.
Canada: Canada’s three major Banks have been supporting altcoin purchases through their credit cards.
- Toronto-Dominion Bank (TDB)
- Royal Bank of Canada
- National Bank of Canada
In these times of uncertainty of the Economy, it is best to research well making any crypto trades or investments using the Bank Credit cards. With the upcoming Financial upheavals, it is safe to say that the Banks need Blockchain technology as much as Crypto Currency requires the mass-wide adoption.