indrakusumaindra
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The Standard Protocol - Solving Inflation
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June 28, 2019, 02:42:53 PM |
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Crypto receipts! This is the most perfect thing I have ever read about the blockchain: Citi has developed an instrument it is calling a digital asset receipt. It works much like an American depositary receipt, which have been around for decades to give US investors a way to own foreign stocks that don’t otherwise trade on US exchanges. The foreign stock is held by a bank, which then issues the depositary receipt.
In this case, the cryptocurrency would be held by a custodian, with the so-called DAR issued by Citigroup, the people said. The bank would alert the Depository Trust & Clearing Corp., a Wall Street middleman that provides clearing and settlement services, that it issued a receipt, one of the people said. That lends an important layer of legitimacy and gives investors a way to track the investment within a system that they’re already familiar with, the person added. I want to cry. I want to give those paragraphs a hug. I have written, more than once, about the complexities and inefficiencies of having pretty much all U.S. stocks held by DTCC. “It’s enough to make you wish for a blockchain,” I once wrote. A secure, open, permissionless, immutable record of who owns what, one that doesn’t require investors to trust either a bank or a central Wall Street intermediary or to rely on those intermediaries’ old-fashioned systems: That is a core dream of the blockchain, a central appeal of cryptocurrencies. And then here is Citigroup Inc. looking at investor demand and concluding: Yes, sure, Bitcoin is great, but what Bitcoin investors really want is to hold Bitcoins in the form of receipts issued by a giant bank and registered at DTCC. That’s where the real innovation is! That’s what the people want! “Take this blockchain away from me,” they cry, “and give me the old system that I know!” A claim that you sometimes hear is that the blockchain will revolutionize back-office processes — settlement, custody, etc. — in the financial system. But look at the actual experience of cryptocurrency custody. The main story of institutional investment in cryptocurrency these days is a story of custody, broadly speaking: Large institutional investors want to get access to Bitcoin, but they do not want to own actual Bitcoins, themselves, on the actual Bitcoin blockchain. They want Bitcoin exchange-traded funds, or Bitcoin futures, or Bitcoins held in custody by regulated crypto exchanges or traditional big banks, or, sure, crypto depository receipts, why not. Everywhere there is a blockchain, a trusted central intermediary — often a bank or other old-school Wall Street middleman! — springs up to make it useful. Does that tell you anything about the prospects for blockchains to replace central intermediaries? I confess, though, that it goes the other way too: “Two financial technology companies won New York state approval to issue cryptocurrencies pegged to the U.S. dollar,” the Gemini dollar and the Paxos Standard, “creating more regulated and transparent competitors to Tether and other so-called stable coins,” which are in turn competitors to … the dollar. If you want to hold your Bitcoins through a bank, you can, but on the other hand if you want to hold your dollars through a blockchain, you can do that too. https://www.bloomberg.com/view/articles/2018-09-10/keep-your-bitcoins-in-the-bank.... Summary: Citibank has created something they call a "digital asset receipt(DAR)" which could allow purchasers of bitcoin to have banks hold their coins. The details aren't clear. There isn't much information posted here about minimum purchasing amounts or who digital asset receipts will be marketed to. Its nice to see innovation and new offerings for crypto enthusiasts. Although I have a feeling these digital asset receipts might come bundled with $100,000 dollar minimum investments and cater only to high(er) end demographics. I would guess some would opt for DAR's if they could provide insurance on bitcoins and crypto up to limited amounts. I do think this is a good news, Even a big player in bank like citibank are started to consider crypto are something that can be hold as a currency. I think custody is really important and bank is the best candidate to gain a trust from people to start to using cryptocurrency meanwhile bank are offering a custody to keep their crypto safe. |
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Once a transaction has 6 confirmations, it is extremely unlikely that an attacker without at least 50% of the network's computation power would be able to reverse it.
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fiulpro
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June 30, 2019, 05:32:31 PM |
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I think the whole idea of cryptocurrencies was to not let any big authority like banks for example , can have control of our assets.
Why would we just go back and then just let that thing spin again ? This way we are in control , if someone is so insecure he or she can run and full node , make things more secure or just choose a hardware wallet ..
Also in case if a bank goes through a bad stage then what would happen?
I think I will pass ... We are the bank here man , no middle man.
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jpoker272727
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June 30, 2019, 05:50:16 PM |
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This is new to me though i am an account holder with CITIBANK.
this is a good option to have, i just need to vconfirm it to my agent and if this is real. this is a good to have. a must to get.
Now i can see some movement from banks having crypto currency.
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Irvinn
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June 30, 2019, 06:19:56 PM |
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It seems to me that today banks cannot provide a real opportunity to save cryptocurrency for the user. Some banks lose their money from accounts that are hacked by hackers. The same situation will be from cryptocurrency. If your money or gold bars are in a bank safe, then here the bank is more likely to save these funds rather than cryptocurrency.
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finaleshot2016
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Degen in the Space
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June 30, 2019, 06:30:16 PM |
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It's a great platform for the bank but I'll stick to online wallets than a bank. The government has the ability to seize that money if they encounter a huge problem related to cryptocurrency. Online wallets are much safe, you can control and check it every day while in the bank, it's just the same. It's riskier than the usual thing.
I'm ok with the adaptation of the banks to bitcoin but the idea is shady when the government interferes.
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slaman29
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Livecasino, 20% cashback, no fuss payouts.
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July 04, 2019, 10:13:00 AM |
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I don't get it. What is it really? Bitcoin and crypto currencies banned or they're still not regulating it? As far as I know even if btc is banned in your country, as long as you are not transacting locally, there will be no problem and there is no way they can track your address since they will never know which is yours. Also, I will not be keeping my bitcoin in a Bank since that is not the reason why it is made.
There's nothing to get. Banned, or non regulated, it doesn't stop you or any user from using bitcoin, and that's the pure beauty of the whole thing. It's not about transacting locally, it's about selling it or buying it with money that can be traced to a local account. I can send and receive btc with anyone, banned or not, but if I start trading at an exchange or even in the case of US do p2p on a centralized platform like LBC, then I allow myself to get identified, and there's where the problem starts. |
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Spaffin
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July 18, 2019, 09:24:18 PM |
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I don't get it. What is it really? Bitcoin and crypto currencies banned or they're still not regulating it? As far as I know even if btc is banned in your country, as long as you are not transacting locally, there will be no problem and there is no way they can track your address since they will never know which is yours. Also, I will not be keeping my bitcoin in a Bank since that is not the reason why it is made.
There's nothing to get. Banned, or non regulated, it doesn't stop you or any user from using bitcoin, and that's the pure beauty of the whole thing. It's not about transacting locally, it's about selling it or buying it with money that can be traced to a local account. I can send and receive btc with anyone, banned or not, but if I start trading at an exchange or even in the case of US do p2p on a centralized platform like LBC, then I allow myself to get identified, and there's where the problem starts. If you already have the opportunity to keep your Bitcoin in banks, you should stop informational speculation about the competition of Bitcoin and the banking system. In addition, the storage of Bitcoin in banks is already certain steps for the legalization of cryptocurrency in their respective countries. But it seems to me that this situation will not please cryptocurrency users, since an important aspect of cryptocurrency ownership was anonymity. |
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Ozero
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Chainjoes.com
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August 18, 2019, 04:02:04 PM |
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Summary: Citibank has created something they call a "digital asset receipt(DAR)" which could allow purchasers of bitcoin to have banks hold their coins.
So these DARs are going to be similar to ETFs. Same story, different package. The point is, you as an investor, don't want to be dealing with creating and saving your private keys. You want someone else to do that for you. Is it good or bad news for the Bitcoin ecosystem? Honestly I don't know. On the pros side, it may help pump new money in. But I tend to think it is not so good, as we get these weird financial constructions, where someone else keeps your bitcoins, not you in reality. Will these custodians be transparent and to what degree? Will they enable landing or other financial instruments on top of these DARs? Will it affect the underlying Bitcoin system, will it introduce a sort of inflation... a lot of unknowns... If this is just ordinary storage in a cryptocurrency bank, then I don’t see much point in using such services. This may be needed by someone who has bought a lot of bitcoins and is going to keep them for years. Also, these services can be used in case of death of the cryptocurrency holder. Here it is entirely possible to provide for the transfer of cryptocurrency by inheritance. However, someone who is going to actively work with cryptocurrency, in my opinion, such services are not needed. I thought that such banks at the same time take cryptocurrency for deposit storage with the payment of dividends. In this case, it would be much more interesting. |
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elisabetheva
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August 19, 2019, 06:20:24 AM |
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-snip-
....
Summary: Citibank has created something they call a "digital asset receipt(DAR)" which could allow purchasers of bitcoin to have banks hold their coins. The details aren't clear. There isn't much information posted here about minimum purchasing amounts or who digital asset receipts will be marketed to. Its nice to see innovation and new offerings for crypto enthusiasts. Although I have a feeling these digital asset receipts might come bundled with $100,000 dollar minimum investments and cater only to high(er) end demographics.
I would guess some would opt for DAR's if they could provide insurance on bitcoins and crypto up to limited amounts.
Very big progress if it is true that Citibank will be able to accept bitcoin assets, because it is clearly safer to store and conduct transactions in a bank, because we know that many wallets are burglarized by people we don't want. hopefully what you inform will be clearer in the future. hoping for progress |
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breathlessz
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Trphy.io
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August 19, 2019, 06:33:24 AM |
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-snip-
....
Summary: Citibank has created something they call a "digital asset receipt(DAR)" which could allow purchasers of bitcoin to have banks hold their coins. The details aren't clear. There isn't much information posted here about minimum purchasing amounts or who digital asset receipts will be marketed to. Its nice to see innovation and new offerings for crypto enthusiasts. Although I have a feeling these digital asset receipts might come bundled with $100,000 dollar minimum investments and cater only to high(er) end demographics.
I would guess some would opt for DAR's if they could provide insurance on bitcoins and crypto up to limited amounts.
Very big progress if it is true that Citibank will be able to accept bitcoin assets, because it is clearly safer to store and conduct transactions in a bank, because we know that many wallets are burglarized by people we don't want. hopefully what you inform will be clearer in the future. hoping for progress it would indeed be very helpful if there were banks offering their wallets for cryptocurrency. we will feel if our assets are large, it will be risky if we keep it ourselves, there is no guarantee of security. a little error can be fatal. but if at the bank, we get extra protection. on one hand, of course this is a development, that banks and cryptos can collaborate |
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HELLOFF
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August 20, 2019, 06:45:27 PM |
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I never doubted that the banking system is adapting to the new market conditions and will use cryptocurrency for its own benefit. No wonder many banks tested blockchain in their systems. Today, statements are already ridiculous when they say that cryptocurrency can destroy the banking system. Now it’s very good to see how banks make good use of Bitcoin for their activities.
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pinkpanther03
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August 21, 2019, 10:11:03 AM |
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I don't know if this is a good news to me, because according to my knowledge once we can keep bitcoin in the banking system it means
the bank company will going to have an access to your account wallet into bitcoin? therefore, they have in control to our balance, is it they can also able to freeze it too?
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imstillthebest
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August 23, 2019, 01:29:44 PM |
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I don't know if this is a good news to me, because according to my knowledge once we can keep bitcoin in the banking system it means
the bank company will going to have an access to your account wallet into bitcoin? therefore, they have in control to our balance, is it they can also able to freeze it too?
There is no need to give your info or private keys . you can just send them your bitcoins to them like a normal transaction . they can do what they want once you already handed out your bitcoins but still this should be consider as a good news because banks are creating more possibilities to expand the use of our btc's . Keeping our btc on a bank is more safe like what we do on our local currencies but this is only optional |
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nightxglow
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August 23, 2019, 02:06:21 PM |
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I don't really understand what it means, and how it works, but i think it's a great news? but some things i'm confused, if we save our cryptocurrency in the bank, does that mean we give them our private keys? or maybe we transfer our cryptocurrency for them? But for what, if we have our own wallet? Will it give us extra protection or maybe just some evidence of our cryptocurrency ownership? Well but i kinda like the fact that bank and cryptocurrency can work together because all these times, i only see people said banks are afraid of bitcoin, or bitcoin will destroy banks etc.
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Renampun
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August 23, 2019, 02:08:44 PM
Last edit: December 18, 2020, 08:54:11 PM by Renampun |
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I don't know if this is a good news to me, because according to my knowledge once we can keep bitcoin in the banking system it means
the bank company will going to have an access to your account wallet into bitcoin? therefore, they have in control to our balance, is it they can also able to freeze it too?
freeze the account, maybe the BANK has control of it but to have control over the account is like having a private key... I don't think that's possible. actually, the concept offered by the BANK is not much different from where the Exchange, they have legal control over our account but do not have a private key account. I think this is very good. |
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sirminesalot
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October 31, 2019, 02:48:04 AM |
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It seems to me that today banks cannot provide a real opportunity to save cryptocurrency for the user. Some banks lose their money from accounts that are hacked by hackers. The same situation will be from cryptocurrency. If your money or gold bars are in a bank safe, then here the bank is more likely to save these funds rather than cryptocurrency.
in the relationship between crypto currencies and banks there must be a negative and positive side to the relationship security issues are certainly safe for our investment assets but in my country the government has not fully recognized the crypto currency as the prevailing currency in its direct transactions is still prohibited by the government and I am sure that in the future crypto currencies will be able to work together with banks and governments |
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reality18
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Earn more with Earn Network
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October 31, 2019, 03:27:21 AM |
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Well, in my country, we don't have Banks which accept cryptocurrency deposits. However, there are cryptocurrency merchants which provide some Banking services like depositing and saving ones crypto assets in a created account which converts the digital asset right into fiat based on the current rate on the market. Here, the depositor receives no interest or decrease in value of asset or funds because it is not subjected to the market volatility any more since the assets are converted to fiat after depositing.
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EdvinZ
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October 31, 2019, 06:54:28 AM |
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I think that such a system of depositary receipts for Bitcoin will be good for investors, but it harms the very idea of Bitcoin as a means of payment. These Bitcoins that will be reserved for these depositary receipts will simply lie on the accounts of their owners and when people buy receipts from each other, no transactions will be made in the Bitcoin blockchain. Thus, Bitcoin will turn from digital money into just a valuable investment asset.
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secretgirl
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BabelFish - FISH Token Sale at Sovryn
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October 31, 2019, 07:24:17 AM |
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if this information is true, I would love to hear it all. and I think crypto fans will also be happy. in my opinion it is a good innovation that will make crypto more desirable by the public. even though receiving digital assets only served high-level demographics and I couldn't afford to invest 100k dollars, I'm still happy to hear that. maybe investors who have lots of money, will use it. and attract the attention of new investors who will join crypto. I think, that's all good news and will make the crypto future better.
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Suslived
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CryptoTalk.Org - Get Paid for every Post!
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October 31, 2019, 07:25:38 AM |
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Summary: Citibank has created something they call a "digital asset receipt(DAR)" which could allow purchasers of bitcoin to have banks hold their coins. The details aren't clear. There isn't much information posted here about minimum purchasing amounts or who digital asset receipts will be marketed to. Its nice to see innovation and new offerings for crypto enthusiasts. Although I have a feeling these digital asset receipts might come bundled with $100,000 dollar minimum investments and cater only to high(er) end demographics.
I would guess some would opt for DAR's if they could provide insurance on bitcoins and crypto up to limited amounts.
Wow this is big news and am surprised it hasn't been sensationalised by news and media outlets. Citibank going into crypto and digital, no matter how "high" the target demographics are, is a huge thing because it recognizes the value of crypto. Hopefully this further adds to the fire of the current bull run we are experiencing. |
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