First Ever Crypto Bank
Crypto Revolution Or Government Control?
So while trading on Binance, I recently heard that Kraken, a crypto exchange platform has recently started the process of obtaining a banking licence in Europe, and become the only crypto exchange in the world to have a dedicated bank.
This news surprised me a lot, as I never expected a crypto exchange platform to get such a formal institution under their belt.
If you didn’t know, recently Kraken has entered the process to obtain a European Banking Licence, and set up a bank in Lithuania with the help of Bank of Lithuania.
Meaning Kraken would now be able to take deposits, and lend out directly without middle-man and partner banks.
Kraken’s CEO Arjun Sethi has reported saying —
"the plan for the next 10 years is to get all of these licenses, either through buying an existing business… or starting from scratch."
And this got me wondering whether this is good news or bad.
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Because on the one hand, you have crypto finally being mainstream to the point of having its own bank, and allowing it to be much more accessible. But — this also means that crypto is getting one more step towards Government regulation.
When Bitcoin, the first started out — it wasn’t planned to be some major institutionalised asset with billions in value and have its own bank or exchange. quite the opposite. it was supposed to be peer to peer, and heavily decentralised.
But then came the exchanges, then tracking by tax authorities, and companies literally built for tracking all transactions.
This turned a once decentralised payment method, into a heavily institutionalised speculative asset.
Don’t get me wrong. Crypto still performs its job. There is Bitcoin, a general purpose crypto, Monero more privacy focused. And lots of others. But it feels like the days where Crypto was just a decentralised method do payment is just gone.
Now unless you want to go walk around trusting strangers with buying crypto, you almost always need to enter a regulated exchange to buy and trade crypto. Which I feel saddened about.
It feels like the original purpose of this tool has been replaced, and I understand it. Institutions follow money, and you can’t really ignore a new flashy trendy tech, that holds billions in value. At some point someone is going to invest in it, in hopes of getting millions back. It just hurts me to see crypto go down this path.
I don’t know, it’s just my personal opinion. But what do you think? Is crypto being too institutionalised and regulated? Or is this the next big Web3 and crypto revolution?
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