Anchorage Bank: First Federally Approved Digital Asset Bank
(Edited)
Digital assets are all the rage right now. There is no doubt most are looking at Bitcoin and the run it is on the last few months. However, there is a lot of other things happening that are vital to the progress of this industry.
In this video I discuss how Anchorage Bank received a national charter from the OCC, making it the first digital asset bank (crypto) to do so.
Here is a link to the article mentioned in the video:
https://decrypt.co/54074/anchorage-first-federal-charter-digital-asset-bank
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Back in 2017 I said that I see crypto banks in the future but people said I was crazy
You are crazy but just happened to be right about that point. 😁
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well... better crazy and right than crazy and wrong I guess :P
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I think this is big for the crypto community. It's a win win situation for both the bank and the clients.
I think more will follow as the success of the first will prompt them to be part
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I think in general, the moment China created the digital yuan, all other countries are considering following along (it is hard to be first to do something). They see this as a way to control the money supply and if it can help people transition from physical money to digital money. One of the major reasons why I think so is because they can more easily regulate the system (most if not all transactions are known to them) and I think they realize that crypto is here to stay. As they want a piece of the money being generated, I see it as something banks would be willing to do.
They can do two things:
The CBDC is not about the bankers but the politicians. It will give them even more power.
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Actually Kraken digital was given the 1st national charter in WY for a crypto bank.
https://blog.kraken.com/post/6241/kraken-wyoming-first-digital-asset-bank/
That was a charter issued by the state. It is recognized federally so they can cater to all US customers.
However it was not a federally issued one from the UCC.
Anchorage could open up branches anywhere while Kraken is relegated to just Wyoming without getting approval from other states they want to enter.
It is all part of the archaic banking laws where state charters are overridden by Federal ones.
There was a time where only state charters existed and a bank needed one in every state it operated.
Now just get a federal one and all is good.
Not that Kraken cares, they are operating online like most forward thinking banks.
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Thanks for the info on the differences of the approvals.
Summary:
The video discusses recent news about the Office of the Comptroller of the Currency (OCC) granting a national license to Anchorage Bank to provide custodial crypto services. The speaker, Brian Brooks, is highlighted as someone pushing for the acceptance of cryptocurrency in the banking world. The discussion delves into the potential impact of digital assets on the financial system, the motivations of banks to enter the crypto space, and the evolving landscape of cryptocurrencies and regulation.
Detailed Article:
The episode begins by focusing on the recent development where the OCC has granted Anchorage Bank a national license to provide custodial crypto services. This move is highlighted as pivotal because it allows the bank to offer these services not only to individual customers but also to other banks, enabling them to provide crypto purchasing options to their own clients. The speaker emphasizes the significance of this federal license compared to state licenses previously granted to other entities in Montana or Wyoming.
Brian Brooks, who is identified as having a pro-crypto stance and possibly previously associated with Coinbase, is mentioned as a key figure advocating for the acceptance of cryptocurrency within the banking sector. His efforts in driving the integration of crypto into the financial industry, specifically through regulatory channels, are underscored as crucial in advancing the adoption of digital assets.
The conversation then shifts towards a broader perspective on the future of the banking industry in relation to digital assets. The speaker suggests that traditional banking institutions may eventually be overshadowed by not just cryptocurrencies but also by other technological innovations in the financial realm. It is argued that digital assets are set to proliferate across various sectors, indicating a fundamental shift towards a financial system based on digital assets rather than fiat currency, real estate, or traditional investments like precious metals.
Moreover, the discussion expands to encompass the term 'digital assets', emphasizing that it goes beyond just cryptocurrencies like Bitcoin. The concept of digital assets is portrayed as a vast landscape of potential innovations that could redefine the financial system. The speaker points out futuristic scenarios where even the productivity of robots could be tokenized and utilized as valuable digital assets.
Furthermore, the narrative explores the motivations behind banks venturing into the crypto space. It is suggested that banks aim to retain their customer base, expand their service offerings, and generate additional revenue through commissions by tapping into the growing interest in cryptocurrencies. The possibility of major brokerage firms leveraging custodial services as a new revenue stream is also highlighted, signaling a significant shift in traditional financial services towards digital assets.
The episode concludes on a positive note, expressing optimism towards the ongoing developments that are making cryptocurrency more acceptable within established financial systems. The speaker acknowledges potential challenges from regulatory bodies and emphasizes the importance of remaining cautious and not solely relying on bank-like entities, even within the realm of cryptocurrencies. Overall, the video conveys a sense of optimism regarding the evolving landscape of digital assets and their integration into the traditional financial sector.