Bitcoin has shot up at the time of writing, and while Live Bitcoin News just reported two hours ago that that the reason may have something to do with a second round of stimulus checks, perhaps the reasoning for bitcoin’s sudden surge has more to do with the fact that banks and crypto suddenly appear to be getting along.
Banks Have Opened the Door to Crypto
Banks and crypto have never been the best of friends. For the most part, it seemed as if banks were terrified of cryptocurrencies in that they represent everything standard financial institutions aren’t. For example, banks are fully centralized. They aim to take full control of people’s financial situations. They decide who gets access to which tools, and they have full say when it comes to telling a person “no” – especially if you have a shaky financial history that includes lagging income or missed payments.
By contrast, cryptocurrencies are fully decentralized. They aim to put financial power back in the hands of the people that use crypto. They don’t care what your history looks like. All you need is an online account or a crypto wallet and boom! You can start receiving, selling and trading whatever digital coins match your needs. Both systems couldn’t be more different.
But now, things have taken a positive – and unique – turn. The U.S. Comptroller of the OCC is now allowing all standard banks to provide their customers with cryptocurrency tools and services as a means of remaining competitive. This is a clear indication that banks and standard monetary firms believe that crypto is here to stay and that they’d better start accepting the market for what it is before things take a rough turn.
Brian Brooks – the acting Comptroller of the OCC – explained in a statement:
The opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today, for tens of millions of Americans, includes cryptocurrency.
A Powerful New Relationship
The decision comes right in the middle of one of the biggest crises America – and the rest of the world – has faced. The coronavirus pandemic first came to fruition about four months ago and took a nasty toll on the nation’s economy. As a result, many people – worried about inflation and other monetary issues – began to utilize crypto as a means of hedging their wealth and protecting themselves against any further economic damage.
Bitcoin initially began its two-month rise to the $9,000 range during this time. Now that the attitude has changed towards crypto and most Americans see it as a powerful tool designed to help them reach their financial goals, it’s ironic that banks and other institutions are accepting that many users are looking to get their hands on crypto and are willing to pave the way towards easier access.