The vast plains, the Rocky Mountains of Wyoming and its favorable cryptocurrency laws: its governor had signed a law allowing insurance companies to invest in cryptocurrency, he also wants to bring banks and crypto exchanges closer together in the crypto race.
The crypto revolution without Zuck or MIT
It took 2 years to Kraken Financial to obtain the banking license Special Purpose Depository Institution (SPDI) in L’State of Wyoming.
Its governor, Mark Gordon, argues that its priority is to enable the Wyoming to dominate the digital asset industry.
In his words, he does not wish to wait for the involvement of behemoths like Facebook where the MIT to develop existing opportunities.
The banking commissioner of Wyoming, Albert Forkner, said the challenge is to ensure that state law complies with that of the federal government, to avoid confusion at the bank level.
The Wyoming revise existing banking charters by working with the consulting company Promontory Financial ; The aim is to ensure consumer protection.
Forking considers the license SPDI allowed the Wyoming to gain a certain degree of notoriety.
For Gordon, this charter could accelerate financial innovations in this context of economic depression.
Banks: essential for crypto exchanges
The CEO of Silvergate, Alan lane, indicates that traditional banks pay little attention to licensing SPDI, because of its specific character.
Lane also explains that access to the payment infrastructure of the Federal Reserve Bank is a differentiator for fintechs and exchanges, hence the importance of cooperation with banking partners.
It is impossible to say at this point whether the Federal Reserve Bank of Kansas City will allow these banks to open accounts within his institution.
On the side of Silverbank, collaborations already exist with financial institutions providing services related to cryptocurrencies.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Does Bitcoin (BTC) Really Need Banks To Operate? Will we ever really see the signing of a peace agreement between banking institutions and crypto companies? What if banks were future nodes on different blockchains? Legislation favorable to mergers between banks and exchanges is good, but is it really enough? Are banks really ready to abandon their status as financial intermediaries to fully play the game of decentralization which is one of the major foundations of a blockchain?
Litecoin, welcome in the Silver Age