American cryptocurrency exchange Coinbase has partnered with PNC Bank, the fifth largest commercial bank in the United States in terms of assets under management. The reason for the interaction was the work on a joint cryptocurrency project, which PNC Bank representatives supposedly should announce in the coming time.
At the same time, the project itself must provide a financial organization with access to mechanisms for investing in cryptocurrencies.
Note that while ordinary banks want to start working with cryptocurrencies, some cryptocurrency companies are planning to turn into banks. An example of this is Circle, the issuer of the USDC stablecoin. This week, its representatives announced their desire to become a «national bank for digital currencies.» This will enable the company to make digital assets available to more users. In addition, the event will have a good impact on the reputation of the industry.
Earlier in the fall of 2020, the Kraken cryptocurrency exchange received a license to create its own bank. The plans of the management of the latter are to pay salaries to clients in digital assets. Read more about this in a separate article.
Which banks interact with cryptocurrency
Information about the partnership with PNC Bank appeared in the official report of Coinbase for the second quarter of 2021 to its shareholders. Here is a quote from this document that allows you to draw conclusions about what is happening. The replica is provided by Coindesk.
In recent months, we have partnered with industry leaders including Elon Musk, PNC Bank, SpaceX, Tesla, Third Point LLC and WisdomTree Investments.
Exactly how Elon’s interaction with Coinbase became is unknown. The most obvious assumption will be the version that Musk could acquire large amounts of cryptocurrencies using the trading platform. However, there is no confirmation of this version.
Notably, PNC Bank, headquartered in Pittsburgh, posted an ad in its job section seeking a blockchain expert. However, after some time the vacancy was removed. Taking into account the announcement of Coinbase, it seems that a new employee has been found.
Not only American banks are thinking about the prospects for innovation in finance . The day before, Ghana’s central bank partnered with German banknote and securities printing company Giesecke + Devrient (G + D) to continue developing the Ghanaian Cedi’s own digital currency (CBDC). As part of the agreement, G + D will provide its own solution in this area, known as Filia. It will be used to pilot Ghana’s CBDC. The digital currency will be tested with local banks, payment platforms and businesses.
This project is part of a strategy to digitalize finance for Ghana. The digital cedi, also known as e-cedi, aims to complement the country’s traditional national currency as an alternative. In Ghana, a significant part of the population does not have access to traditional banking services, so e-cedi will allow them to become a full-fledged part of the country’s financial ecosystem.
Recall that the introduction of national digital currencies is considered a prerequisite for the popularization of full-fledged cryptocurrencies. Nevertheless, the projects of banks in the form of CBDCs, first of all, should force citizens to finally switch to digital currency. In this regard, it will become easier for them to perceive cryptocurrencies that have no physical form over time. This means that in such conditions, people will have at least a reason to think about interacting with cryptoassets, which compare favorably against the background of government «alternatives». Still, the former do not have a centralized governing body, which means that the holders of the crypt are its full-fledged owners.
We believe that this news confirms the point of view of analysts who predict the relationship of banks with cryptocurrencies. And although decentralized digital assets essentially contradict the ideals of centralized financial institutions, this niche is in demand among the population, which means you can earn money on commissions. That is why banks will agree to contact this niche – and there will be no talk of principles here.