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December 9, 2024
Last week, The Federal Reserve published guidelines for companies who seek to open master’s accounts at the Federal Reserve. This will enable companies, including crypto banks, to perform payments in the global payments systems and essentially become a financial entity, just like a regular bank.
As of now, financial institutions that want to offer crypto services can’t provide banking services as well, and they have to choose either of them. Therefore, crypto banks had to use intermediaries to access the banking system. That is why these guidelines seem dramatic: While this is just an early first step, it marks the beginning of crypto banks functioning as banks and a new era of Defi.
Let’s say that crypto banks will eventually become full-on banks. What’s the big deal? After the collapse of Tera and others, and with the current bear market (even the BAYC price is dropping), why does it matter if some crypto banks will have their bank charters?
Well, we believe it matters since tokenomics is crucial for the future of the global economy. The potential of removing intermediaries is unlimited. For instance, companies today are working now on selling real estate using NFTs: remove all the paperwork and just use smart contracts. As the Chief Growth Officer at THORWallet DEX said to cryptonews.com recently, “By removing the need to rely on intermediaries, Defi makes traditional banking services far more accessible, opening up the array of innovative tools enabled by blockchain technology.”
We know It is Crypto winter, and things are scary at the time for many investors. However, it is worth mentioning that if you genuinely believe in the future of Web 3.0, this is just a setback and not the end of the world. Removing intermediaries in the economy could be a breakthrough for humanity: This change in the feds guidelines is another positive sign toward more flexible use of crypto.
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