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Bitcoin – How Can Banks Involve With Cryptocurrency Industry?

by Sonal Shukla

Although the boundaries of cryptocurrency are gradually expanding and attaining lots of popularity, conventional banks are pretty hesitant to accept digital assets. Their Stake of not accepting the cryptocurrency is with the idea of inherent risk and potential drawbacks. However, the financial regulatory and Agencies are upcoming with the accumulation of digital assets by traditional banks. Therefore, the OCC is trying their best to change the theory of bank and procession towards digital currency.

Recently the famous OCC issued various interpretive letters with details related to traditional financial institutes entering into digital currencies. Lots of efforts are put towards helping the bank to become more confident and compatible with the digital asset. In early January, the same agency announced the memorandum signed by National banks of allowing blockchain and cryptocurrency to perform the payments. According to the details, banks open the doors for cryptocurrency to increase the speed of transactions.

The availability of cryptocurrency will quickly avoid the necessity of raising the need for third-party agencies. Banks are apprehensive about the involvement of digital coins; however, they believe that the new generation requires fast transactions and digital assets. There are so many valuable benefits that digital currency will offer financial institutes and their respective customers. Above all, the bank requires understanding the technology to treat their customers. Adopting cryptocurrency will upgrade financial services and enhance productivity with industrial advancement.

  • Custody Services

In July 2021, the OCC agreed to customize the Crypto services with financial banks. They also stated that the banks and the potential savings. Association will provide every type of service to the customers about Crypto. It simply means that OCC has complete trust that every bank can maintain efficiency and effectiveness with the combination of cryptocurrency itself.

  • Easy Expert Assistance

Most of the banks are helping in developing new changes in society by learning about new developments. They are also helping the new and less experienced investors in developing tools and facilitating them with the adoption of cryptocurrency—for instance, any fresher who does not know cryptocurrency investment or set up their digital wallet. In addition, the National Institutes regularly provide helpful knowledge about the third party’s exchange and regulations.\

Banks are eligible to offer Crypto holders interest where the potential customer can easily invest the money into Crypto with the financial tools. The coming era will stress-free invest the money into the Crypto on the advice of banks? Many recruitments are currently happening in the financial institution for expert assistance in cryptocurrency. It is one of the significant steps taken by the financial institution in becoming the trusted third party in respect of the financial industry and a legal advisor for the investors.

  • Security Concern

It is the responsibility of every financial bank to mitigate all the situation that breaches the security of cryptocurrency holder. The people do so many fraudulent activities to disrespect the cryptocurrency holder and take away the money. Hacking the personal wallet and disturbing the exchange is every Crypto holder’s most essential and raised concern. The banks are coming forward to secure the digital currency from hacking by supervising criminal activities. 

Both cryptocurrency and the financial institute can single-handedly control and diminish the criminal offence and protect every transaction.

  • Payments

The indication by the OCC letter is that the banks can utilize the public blockchain that involves coins to increase the speed of the payment process. Blockchain technology will provide fast services with less expense. Using the blockchain for the transactions can stand as an alternative for clearing the house and conducting more transactions. The settlement between the two parties will provide good customer support, and the banks on utilization of blockchain Technology will receive faster rates.

  • Smart Contracts

Whenever any party comes into a contract, they agree and disagree on some points. In the case of blockchain and Financial institutes, some crucial points are discussed in the smart contract. This contract will help reduce misunderstanding and provide a successful transaction dependent upon the computer codes. 

The personality who crave to know more about the contracts and letter of credit can visit https://www.chesworkshop.org/ekrona/ Adopting Bitcoin and blockchain will streamline the process and efficiently provide the banking system.

 

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