Bitcoin integration: The FED teaches US banks a lesson

When the Fed is about to integrate cryptos. In general, the central banks don’t like bitcoin very much and decentralized cryptocurrencies. But faced with the fait accompli of their adoption growing, the Federal Reserve (Fed) of the United States is obliged to take them into account. The large central bank must therefore explain best practices other banks wishing to offer crypto-assets.

Is the Federal Reserve Giving the Green Light to Cryptos?

Bitcoin (BTC) and cryptocurrenciesgradually integrate, but inexorably, to traditional finance. Thus, more and more banks are stamping their feet with impatience to propose to their customers.

The Federal Reserve American does not want this mass arrival of digital assets in conventional banks turns into far west. It has thus integrated the addition of cryptocurrencies in his guidelines for banks.

As Decrypt reports in particular, the Fed could grant “cryptocurrency deposit banks” what is called “master accounts” (master accounts). But what does that mean exactly?

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Crypto-banks with a storefront at the Fed?

Institutions with master accounts with the Federal Reserve may have a access and especially of direct transactions with the central bank. A privilege of which establishments offering crypto-assets were until now deprived.

“The new guidelines provide a consistent and transparent process for evaluating applications for accounts with the Federal Reserve. (…) in order to support a safe, inclusive and innovative payment system. »

Lael Brainard, Vice Chairman of the Federal Reserve

Aspiring bankers from the cryptosphere would, however, be classified in the category 3 – judged as the more risky » – from the Fed. These crypto-banks will thus require a “significantly different supervisory or regulatory framework” that of federally insured institutions.

The trading platform krakenwho succeeded in obtain official crypto depository bank status in the USA in September 2020, is at the forefront of candidates wanting to obtain a master account with the Fed. Now, is the US central bank really going to move from words to facts ? This is an other story !

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