The emergence of two new digital currency banks shall be seen sooner
This week, the national bank got two applications. One was for the BitPay and the other was for Paxos. Surely on the 8th of December, both the currencies of digitalization service providers filed the paperwork at the Comptroller of the Currency office. As per the filing, it has been noted that Paxos is now looking forward to operating in New York while Bitpay shall be operating out of Georgia. Previous to this year, it was even noted that the Kraken which is another digital currency exchange turned out to be the first digital currency bank. However, Catlin long’s Avanti also turned out to be the second digital currency bank that has done noted great profit.
The focus of digital currency service providers to be Banks
With the advantages of a national Trust Bank charter that can bring to the operations, business, and even the customer service. The US law further had organized at both the state and even the federal level. The national charter was designed for letting the bank conduct the business across the state lines in a much easy manner. If the providers of the digital currency were about to be the national banks, they will not have to apply for the license or look for the approval for the operation to be done state wise. Besides if the service providers of digital currency turn to be the national banks, then the law needs to be followed for becoming uniform throughout the country instead of being unique in every state which is now being followed.
They are not alone in this:
Prior to this year, the digital currency customer providers also had forwarded an application to be the national bank. Given the advantages that the digital currency service providers shall experience buy turning to be a national bank. Most of the service providers will then have to follow the footsteps of Avanti and Kraken. Such a service provider shall be the bank that will pave out the way for the digital currency bank for offering the digital assets associated with financial products. Whether it is to pay off the bills or earn the salaries in cryptocurrencies to be blended in the digital assets in trading and investment, Kraken financial will let the clients of Kraken bank seamlessly between the national currencies and digital assets.
Crypto Business World
CBW - External Analyst