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The Royal Bank of Canada (RBC) is creating a new cryptocurrency platform.
Cryptocurrency Trading By Way of Canada, Eh…
The institution is not necessarily joining the ranks of countries like the United States and China, which are setting their sights on national digital currencies designed to track user performance. This is not a centralized platform, but one similar with everyday crypto exchanges like Coinbase and Binance. The platform being offered by the bank will provide traders with access to standard cryptocurrencies like bitcoin and Ethereum.
Investors simply need to open accounts with the bank to be able to engage in trading. A statement regarding the bank’s sign-up process reads:
To individual users, managing cryptographic keys and transacting with different cryptographic assets can be a challenge. In some situations, cryptographic asset transactions may take time to be confirmed, and/ or may not be compatible or supported by merchant systems or point-of-sale devices.
The situation could add a little more legitimacy to Canada’s current situation. The country has not had a great track record with digital currency given that two of its biggest exchanges – the Einstein Exchange and Quadriga CX – have shut down and prevented a lot of people from accessing their funds.
The Einstein Exchange shut down less than a week ago. Several users were unable to gain entry to their money. The office has been boarded up and the phone numbers no longer work. The company refused to answer any emails and the venture is now under investigation by local law enforcement.
The problems with Quadriga stem back to late 2018. The head executive Gerald Cotten passed away in India while allegedly performing charity work. The problem was that he was the only one with access to the exchange’s private keys, meaning he was the only figure capable of gaining access to customers’ money, and all other executives were on their own.
Millions of dollars have since been locked up in the exchange and several individuals have brought forth a class-action lawsuit against the company after attempts to harass Cotten’s wife over the lost money proved fruitless.
It’s Done This Before
This isn’t the first time the Royal Bank of Canada has dabbled in blockchain or cryptocurrency. Two years ago, the institution was working on a new platform designed to rebuilt financial relations between Canada and the U.S. and establish crypto payments between the two nations. Blockchain is widely reputed for its ability to lower fees and eliminate third parties, making transactions easier and faster.
Canada has also become considerably looser regarding crypto over the past few months, with the region relaxing a lot of its transaction rules. Exchanges and trading platforms are now only required to report payments of more than $10,000 CAD, while a lot of crypto exchanges were “downgraded” to money service businesses (MSBs).