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Title: America's Oldest Bank Adopts Cryptocurrencies, Will Treat Bitcoin "As Any Other Asset"
Source: zerohedge
URL Source: https://www.zerohedge.com/crypto/am ... t-bank-adopts-cryptocurrencies
Published: Feb 11, 2021
Author: Tyler Durden
Post Date: 2021-02-11 10:10:00 by Esso
Keywords: None
Views: 41
Comments: 5

The oldest bank in America will now be storing Bitcoin on behalf of its asset-management clients, according to the Wall Street Journal.

“Digital assets are becoming part of the mainstream,” said Roman Regelman, chief executive of BNY Mellon’s asset-servicing and digital businesses.

BNY Mellon’s announcement marks the first time one of the big custody banks has unveiled a road map for treating digital currencies as any other asset.

Decrypt reports that the bank plans to enable cryptocurrencies to flow through the same systems that it uses for its traditional currencies and stocks.

It has created a prototype for doing this and is engaging with clients to see if they want to use it.

BNY Mellon intends to begin offering these capabilities later this year.

The reaction helped extend a rebound from overnight lows (crypto was oddly weaker after MasterCard and Amazon both announced pro-crypto news), back above $46,000...

BNY Mellon's move is ironically timed as it follows Tim Lane, the deputy governor of The Bank of Canada, proclamation that costly verification methods and unstable purchasing power makes cryptocurrencies like Bitcoin a "flawed" method of payment.

In a speech on "payments innovation," Lane desperately attempted to pour cold water on the decentralized system of payments would entirely disrupt his industry, exclaiming further that, "the recent spike in their prices looks less like a trend and more like a speculative mania - an atmosphere in which one high-profile tweet is enough to trigger a sudden jump in price."

He doth protest too much we think.

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Poster Comment:

I'm not even going to think about cryptos until this shakes out. I can't compete fairly with big banks.

I think I just saw BTC's future fade away in a huge flash.

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#1. To: Pinguinite, 4um (#0)

Pin Ping.

The light that burns twice as bright, burns half as long. - Dr. Eldon Tyrell

Godfrey Smith: Mike, I wouldn't worry. Prosperity is just around the corner.
Mike Flaherty: Yeah, it's been there a long time. I wish I knew which corner.
My Man Godfrey (1936)

Esso  posted on  2021-02-11   10:11:28 ET  Reply   Trace   Private Reply  


#2. To: Esso (#1)

Indications are that bitcoin and crypto in general is becoming mainstream. Tesla buying into it was very big, and it comes after Paypal did so around October. CC's are getting in on it. Iran announced they would purchase goods internationally using their domestically mined bitcoin, and I expect they may soon announce a willingness to accept bitcoin for oil, ushering in the petro-bitcoin, which will give it a huge boost.

Bitcoin is problematic though in its cost of transactions. When you pay in bitcoin, you pay a small amount more to support the transaction. Well, right now that fraction is about $25 which kindof makes buying a cup of coffee expensive. It's not an issue for huge transactions though, so bitcoin will be favored by big finance and govs, but not small people.

That is ironic as BTC was created because of the abuse by big finance and govs.

Pinguinite  posted on  2021-02-11   11:39:22 ET  Reply   Trace   Private Reply  


#3. To: Pinguinite (#2)

That is ironic as BTC was created because of the abuse by big finance and govs.

The banksters will do for crypto what JPMorgue has done for silver.

I had a lot more faith in cryptos before the billionaires got involved. We'll see how this plays out.

The light that burns twice as bright, burns half as long. - Dr. Eldon Tyrell

Godfrey Smith: Mike, I wouldn't worry. Prosperity is just around the corner.
Mike Flaherty: Yeah, it's been there a long time. I wish I knew which corner.
My Man Godfrey (1936)

Esso  posted on  2021-02-11   12:00:28 ET  Reply   Trace   Private Reply  


#4. To: Esso (#3)

The banksters will do for crypto what JPMorgue has done for silver.

I see that as very, very possible, and in fact when paypal got into bitcoin a few months back, they started down this road. That is, if you want, you can choose to store your PP balance as crypto. But you can't withdraw it. PP keeps possession of it, effectively becoming a bitcoin bank. And just as banks take cash and do fractional reserve loaning of 10x more than they take in, PP could do the same. In fact they might already be doing it, telling people they have crypto in their PP accounts when they only have a fraction of that amount, which ushers in the era of paper bitcoin, artificially inflating supply.

It's no different than how banks did gold & silver.

But there is one attribute of crypto that stands to resist that, and that is the fact that banks are not needed for crypto storage and management, unlike with gold, silver and cash where holding large sums of it is physically appreciably risky. Contractors could demand bitcoin "in-hand" as payment which would force banks and payers to come up with the real thing.

And while bitcoin xfer fees will be fine for big institutions, it won't be okay for little people, which means other more advanced cryptos will fill that nitch. So we could see in a crypto world a multi crypto standard. And in fact, we are already seeing some of that as various cryptos are designed to better fill various economic nitches such as on-line gaming, video game apps and such.

In any event, I see little room for the fiat dollar in the world's economic future.

Pinguinite  posted on  2021-02-11   12:33:36 ET  Reply   Trace   Private Reply  


#5. To: Pinguinite, Esso (#4)

StraitGate  posted on  2021-02-11   20:23:03 ET  Reply   Trace   Private Reply  


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