As per reports, the Texas Department of Banking has issued a notice that confirms state banks will be allowed to store Bitcoin on behalf of the clients. This is good news for the digital currency firms, users and investors in the state.
Texas Senator Ted Cruz also recently disclosed in an interview that he is pro-Bitcoin and supports the flagship cryptocurrency. After the Senator’s announcement, the new notice issued by the banking department can be seen as a positive indication for the largest cryptocurrency.
Bitcoin has recently been recognized as a legal tender in El Salvador, which gave a slight boost to its price. Even though the price of the crypto asset is not as high as many would prefer, its utility and prominence are growing, nonetheless.
The initiative taken by the Texas Department of Banking is also likely to enhance the significance of the crypto asset, provided the conditions set by the banking department are fulfilled.
With the recent developments involving the flagship crypto, it might be a suitable time for novice parties to use secure exchanges and purchase BTC. People who are inexperienced and are looking to trade BTC for the first time can use PrimeXBT Covesting, which is one of the safest exchanges in the market.
Can This Be Beneficial for Bitcoin?
The price of Bitcoin has been on a rollercoaster since the massive drop observed last month. However, the ups and downs in BTC’s price have not severely affected its prominence or growth.
The accumulation of BTC by Whales, adoption of BTC as legal tender by El Salvador and support by the Texas Senator are some of the new developments that somewhat positively impacted the flagship cryptocurrency. The notice issued by the Texas Department of Banking is also likely to be on the same list of developments.
According to the note, state-chartered banks can store digital currencies if they have “adequate protocols in place” for complying with the law. It was stated in the note:
“Texas state-chartered banks have long provided their customers with safekeeping and custody services for a variety of assets,”
“While custody and safekeeping of virtual currencies will necessarily differ from that associated with more traditional assets, the Texas Department of Banking believes that the authority to provide these services with respect to virtual currencies already exists pursuant to Texas Finance Code § 32.001.”
As stated in the notice, interested banks have the option to store copies of clients’ private keys. The banks can also accept any digital currency transfers that are made and store them in wallets controlled entirely by the banks.
The state banks also have several legal obligations to the clients, which include the safekeeping of the asset and returning it without any harm, whenever the client requests.
Could This Be a Game Changer for Crypto?
The price of Bitcoin has been vulnerable to several factors. However, the ups and downs in its price are not something new and have been witnessed by long-term investors and hodlers for quite some time. Therefore, the impact of new developments, as mentioned above, on Bitcoin can be unpredictable to some extent for now.
With the state banks holding Bitcoin on behalf of the clients, new opportunities can arise for the flagship crypto as well as the investors and enthusiasts of the crypto. Whether this will be a game changer for the world of crypto or not, is a question on the minds of many.
Therefore, stepping into the crypto space can be exciting and slightly challenging at the same time. However, if the beginners use secure exchanges such as SwissBorg or Kraken to invest in Bitcoin, they can do so in a safe and stress-free way.