As banks have become passive advocates for cryptocurrencies, it is questionable whether this is an honest move or just a way to exploit the current boom in Cryptos. Keeping in mind that they tried their best to discourage people from transacting with cryptocurrencies.
A lot of reputed people have hopped on to the train of Crypto after making comments that seem to suggest that they are dangerous. Andrew Bailey governor of the Bank of England had said that cryptocurrencies were dangerous and people should expect to lose all their money but for some reason has reverted on that stating “We are looking at the question of, should we create a Bank of England digital currency”. It is hard to say what exactly has changed their opinion or whether they are looking for a way to break in and make a profit.
This is also the situation with Federal Reserve Board Governor Lael Brainard saying that the pandemic’s harm to the economy can be fixed with a payment infrastructure that relies on cryptocurrencies. In addition to that, the Federal Reserve is researching and experimenting with blockchain technologies and how they can be implemented.
Customers in the Us will able to transact with cryptos via banks all thanks to the New York-based financial firm NYDIG. Fidelity National Information Sevices is working with NYDIG have created a joint program that enables banks to participate and get into the industry. Although big banks are still on the fence about whether they should apply, small banks are not hesitating from enrolling. NYDIG hopes that this could lead to a revolution in the finance sector by rewards being paid in bitcoin, and an account that is FDIC insured but pays interest in Bitcoin.
Not only the US but also the RBI in India has gone back on their word from deterring people from transacting with Crypto to coming with their own (Central Bank Digital Currency). Although it said that people could transact with Crypto according to the regulations, no other information has come to guide people on how to start trading. The entire situation has been quite disheartening and demotivating for many young investors losing their chance to join the race. China despite banning cryptocurrencies has already launched its own CBDC with appropriate laws and regulations.
Dwayne D’cunha, Writer on Medium.
Originally published at https://www.linkedin.com.