South Korea's Shinhan Bank Developing a Platform to Offer Custodial Services to Cryptocurrency and other Digital Currencies.
Nov 28, 2017 Posted / 1420 Views
Many Banks have been shying away from the cryptocurrency bandwagon for a long time fearing the risks associated with them. Many financial institutions are still opposing Bitcoin openly, but recently some notable institutions lime JPMorgan has had a shift in their opinions about Bitcoin. JPMorgan is said to be developing capabilities that will enable it to offer cryptocurrency services to its customers in a nearby future. The decision comes after the Bank's CEO referred to Bitcoin as a fraud, what a fast change of mind he has had.
Shinhan Bank of South Korea is working to develop a virtual currency deposit service a platform anticipated to host cryptocurrencies as its many products. It is clear the bank is actively developing a capacity that will enable it to reap some profits from Bitcoin and other cryptocurrency Businesses. South Korea has remain open minded in regards to Bitcoin and other crap to currencies, a move that turn the country into the world hub for cryptocurrency exchange Businesses.
Shinhan Bank has been awarded a contract which will see the bank Build its custodial service with the goal of allowing customers deposit digital currencies securely. This will provide a bridge between the traditional financial systems and cryptic urgency. Banks opposing Bitcoin and other cryptocurrency gain nothing rather they would have to develop a service platform for handling Bitcoin and other digital currency so as they can make some money out of the technology.
The virtual currency ecosystem will get to the next level when banks and other traditional financial institutions join the industry. The next evolution will be a correction to the vice of price instabilities hindering development and trust on major cryptocurrencies. The Bank deposit services will more or less work as a cryptocurrency exchange of a sort. However another vice associated with Bank's involvement with cryptocurrency is that the underlying value of anonymity and decentralization would be lost. Bitcoin has gained its value over the years because of its sense of being decentralized, peer to peer and anonymous, any involving a central storage of the currency will not be welcomed by many elite users of the currency.
Whether banks emerged as the main custodians for digital currencies there will still be immersed competitions from other private wallet developers. The need for hardware wallet to securely store large sums of digital money will continue existing. People in the cryptocurrency ecosystem like things to happen fast, dealing with a bank might slow down how transactions are conducted in the cryptocurrency world.
In the meantime, Shinhan Bank is in the process of Building a testnet server with capabilities to store digital money. The bank plans to develop smartphone applications too to expand the base for its digital services infrastructure. Dealing banks still puts a lot of user information in the hands of the banks giving chances to compromises of user accounts something cryptocurrency users are very skeptical about.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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