Discover: 103% gains on the table for savvy investors, thanks to this 15 June announcement. Here’s why…
US banks can now hold crypto
The US government just declared national banks can offer crypto custody services to their clients.
In a public letter, dated July 22nd 2020, the Office of the Comptroller of the Currency announced:
This letter responds to your request regarding the authority of a national bank to provide cryptocurrency custody services for customers. For the reasons discussed below, we conclude a national bank may provide these cryptocurrency custody services on behalf of customers, including by holding the unique cryptographic keys associated with cryptocurrency.
This letter also reaffirms the OCC’s position that national banks may provide permissible banking services to any lawful business they choose, including cryptocurrency businesses, so long as they effectively manage the risks and comply with applicable law.
So basically, it’s now legal for US banks to provide crypto custody services to the public.
Why does this matter?
It’s just turned crypto into a mainstream investment that is as safe and easy to store as stocks and cash.
Once the ball gets rolling on this, anyone will be able to walk into their bank and buy, sell, store and trade crypto.
In the same week…
e-Commerce giant announced, it’s building stablecoins on top of Ethereum
Visa is one of the largest and most popular e-Commerce companies. I’m sure many of you have the Visa logo on your bank cards.
Anyway, Visa is a major player in the e-Commerce market. The company reportedly handles around 150 million transactions every day.
But the major news I want to talk about is Visa’s recent press release.
The company stated its commitment to crypto and revealed details of the projects it’s been working on.
We’ve been advancing and evolving our digital currency strategy for quite some time. Last year we made an investment in Anchorage, a company building security infrastructure for the digital currency ecosystem.
Their work has yielded several promising innovations, including Zether and FlyClient. Today their research is focused on new mechanisms to improve scalability and enable offline digital currency transactions.
In this paper, we propose Zether, a fully-decentralised, confidential payment mechanism that is compatible with Ethereum and other smart contract platforms.
And of course, if you have money in Ethereum, it’s not exactly bad news either.
But the bigger picture is…
Just like US banks open up crypto services, Visa’s announcement just shows that cryptos are starting to hit the mainstream – which is not only good for crypto acceptance, but could boost the market over the long-term.
Every time this event happened the price of Bitcoin soared more than 29 times!
It happened in 2012...It happened in 2016 ...
And it just happened again!
Money locked in DeFi doubles to $4 billion in just 30 days
I’ve spoken about “DeFi”
before, but in short…
DeFi allows you to create an entire financial system without banks or central authorities.
And this could overtake every area of traditional finance, because it makes things cheaper and more efficient.
DeFi is likely the reason for the renewed interest in crypto – and particularly Ethereum – in the last few weeks.
Just consider, in June the total money locked in DeFI grew from around $100 million to around $2 billion.
Now look at what happened in July…
As you can see in the chart, the total amount of money locked in DeFi almost doubled in just 30 days, going from just over $2 billion to just under $4 billion.
Remember, the possibilities for the DeFI market as a whole, are endless!
As well as loans, DeFi will eventually be used for everything like… mortgages, bank accounts, savings accounts, stocks and shares, insurance… you name it.
And eventually major financial systems could move over to DeFi, because it’s a much more efficient, and cost-effective way to do things.
That’s all for this week.
See you next week.
Managing Editor, Real Wealth