Bank of America will help large financial institutions to store cryptocurrency

[boss.afro]

The financial conglomerate Bank of America has developed a mechanism that will allow large companies, including exchanges and custodial services, to store cryptocurrency assets of their clients. According to CoinDesk, the Bank received the corresponding patent on Tuesday, November 13.

The document says that the financial institution will need to have a single corporate account suitable for storing cryptocurrencies. To carry out operations, the client will be credited with an equivalent amount of funds, while the cryptocurrency itself will remain in the storage.

At the same time, companies will need a processor and a sufficient amount of memory to store private keys to the cryptocurrency wallet. Transactions are possible with the appropriate authorization.

"In order for the client to be able to carry out transactions with his cryptocurrency, the company will provide him with access to the account associated with his assets," Bank of America notes.

According to the developers, the patented system imposes more moderate requirements for network bandwidth and memory, and consumes less computing and energy resources.

source forklog.com

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[Pmalek]

The whole point of Bitcoin is to take the power away from financial institutions and give it to the people and now a "bank" wants to centralise the ecosystem?!

A purely peer-to-peer version of electronic cash would allow online
payments to be sent directly from one party to another without going through a
financial institution.

Source: https://bitcoin.org/bitcoin.pdf

 

[avikz]

I second the opinion pamlek here! Banks have now realized that cryptos can't be stopped by passing a regulation in favor of the banks. So as a precautionary measure, they have decided to become a part of the ecosystem with controlling interest! Even though this service is not designed for the common mass, but carries a significant risk to cryptos. The power of common people should stay in the hand of common people.

[rikybrosh]

The financial conglomerate Bank of America has developed a mechanism that will allow large companies, including exchanges and custodial services, to store cryptocurrency assets of their clients. According to CoinDesk, the Bank received the corresponding patent on Tuesday, November 13.

The document says that the financial institution will need to have a single corporate account suitable for storing cryptocurrencies. To carry out operations, the client will be credited with an equivalent amount of funds, while the cryptocurrency itself will remain in the storage.

At the same time, companies will need a processor and a sufficient amount of memory to store private keys to the cryptocurrency wallet. Transactions are possible with the appropriate authorization.

"In order for the client to be able to carry out transactions with his cryptocurrency, the company will provide him with access to the account associated with his assets," Bank of America notes.

According to the developers, the patented system imposes more moderate requirements for network bandwidth and memory, and consumes less computing and energy resources.

source forklog.com

Bank want to gather citizens money, so they can lend the money to industry. I think this step has been taken by them because they know the trend and they can't stop it so they try to adapt with the current situation. They should gather fund to increase investment rate, so I think all of bank will do the same thing.

[Lucusfoundation]

The industries are awakening...

It was finally time, you can no longer ignore the huge white elephant in the room!!!

[MULTIK888]

This is one way to collect the cue ball from the common people. Banks are no longer able to control the cryptocurrency market and therefore decided to "Imaginary" participate in this market by collecting bitcoins from depositors.
I'm just wondering, and to return the amount of bitcoins they will be in bitcoins or equivalent to the dollar at the time of creation of the Deposit.)))
And what do you say you have invested in our Bank Deposit of 1 bitcoin in the amount of 6000 dollars, the cue ball has grown to 10 000 dollars and - here take your 6000. )))

[davis196]

I believe that this forklog.com website is just a fake news farm.You should check wether or not the news are true,by verifying it with 2-3 different sources of information.That's how professional journalists do.
Just spreading link to fake news articles acorss the forum doesn't help for building a good disscusion.

[boss.afro]

I believe that this forklog.com website is just a fake news farm.You should check wether or not the news are true,by verifying it with 2-3 different sources of information.That's how professional journalists do.
Just spreading link to fake news articles acorss the forum doesn't help for building a good disscusion.

Where you see fake news learn to read carefully the worklog links to this article https://www.coindesk.com/bank-of-america-wins-patent-describing-crypto-storage-method there is also a patent http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&Sect2=HITOFF&u=%2Fnetahtml%2FPTO%2Fsearch-adv.htm&r=1&p=1&f=G&l=50&d=PTXT&S1=10,127,552.PN.&OS=pn/10,127,552&RS=PN/10,127,552 where is this fake news?

Here is here you, too, write that this false news The international monetary Fund urged Central banks to issue digital currencies I you there even pointed out that you not are right and here you again claim that this fake news

[niko337]

Think about the the notion of you, being the owner of a bank. You have no money. So you borrow money to start one. Who can you borrow from? The public.

You offer savings account for people to keep their money "safe". But in actual fact you can go bankrupt too. (Plenty of examples of extinct banks)
After u get people to "save" their money in you bank you invest and make more money. And then return some small money as interest payments. - this is crowdfunding. Banks are actually borrowing money from the public.

Then here comes the nice one. If YOU, the bank boss decides revenue is so little to make yourself happy, You then offer credit cards... and if the user can't pay on time... xx% interest to be charged to the user.

So technically banks borrow money from the people and then charge a large interest by loaning back to them from the "main pool".

Think about it. If a bank wants to control cryptos...

[audaciousbeing]

The whole point of Bitcoin is to take the power away from financial institutions and give it to the people and now a "bank" wants to centralise the ecosystem?!

A purely peer-to-peer version of electronic cash would allow online
payments to be sent directly from one party to another without going through a
financial institution.

Source: https://bitcoin.org/bitcoin.pdf

 

I guess people are beginning to look beyond the original objective of bitcoin all in the name of adoption and acceptance and majorly what influence such would bring to the price of bitcoin itself and I won't blame them because majority actually entered into crypto currency in other to make wealth and any movement towards achieving that objective, is very much welcome.

For me, any form of bitcoin bank or any services related to that, is purely a deviation from the original objective and does not worth rejoicing over.

[Hydrogen]

Banks being a go between for crypto currency purchase has been a long time in the making. I think in some cases they're offering insurance which could be a decent advantage in cases where hacks or theft occurs.

That said with the issues venezuela recently had getting its gold back from the bank of england, do those types of news stories sew distrust in banks as pillars of our financial establishment? I'm not 100% certain how to feel on that topic. On one hand venezuela isn't the most trustworthy client and so it makes sense to withhold their gold. On the other hand, like it or not Maduro is the President of venezuela and so perhaps his requests for venezuela's gold being returned should be taken a bit more seriously. Its complicated and difficult to see a clear cut moral ground in this debate.

[Coin-1]

According to CoinDesk, the Bank received the corresponding patent on Tuesday, November 13.

In my opinion, this is important. Bank of America received the patent and they have an advantage over other banks. Obviously, they pay attention to intellectual property. Now the large customers of Bank of America can store Bitcoin in their own accounts. Probably the financial institutions will be interested in entrusting a big amount of their crypto currencies to the bank. I assume that this new service provided by Bank of America may have a positive effect on the Bitcoin price in crypto exchange markets.

[darewaller]

I second the opinion pamlek here! Banks have now realized that cryptos can't be stopped by passing a regulation in favor of the banks. So as a precautionary measure, they have decided to become a part of the ecosystem with controlling interest! Even though this service is not designed for the common mass, but carries a significant risk to cryptos. The power of common people should stay in the hand of common people.

Obviously, it is about time they knew they have lost the power and control gradually, and for what it is worth, now that people are beginning to get their eyes opened, I guess they will feel threatened the more with the crypto space in the long run, and this simply shows how confuse they are, coming up with different means of still managing to stay in the spotlight.

Unfortunately, it won't be that simple, as that would take a non-smart company or big institution to want to give banks the benefit of doubt to keep their cryptocurrency.

Why will I ever want to do that even as a person when I can easily be my own bank or when I am actually my own bank ?As confused as the banks are, it seems they just cannot get their priorities right.

[fasdorcas]

It is really funny when I get to see banks coming up with some of these annoying means of trying to still gain some form of control. I guess they are not getting the fact or they just simply do not want to face the reality they have lost that control already.

Even as a large company, why will I want to entrust my assets or the assets of my clients to a bank, when I can simply just store all the assets in a cold storage and have a direct access to my private key myself. It is absurd to see banks not actually getting the true picture here and what they seem to be coming up with does not make any sense at all.

[cluit]

The financial conglomerate Bank of America has developed a mechanism that will allow large companies, including exchanges and custodial services, to store cryptocurrency assets of their clients. According to CoinDesk, the Bank received the corresponding patent on Tuesday, November 13.

The document says that the financial institution will need to have a single corporate account suitable for storing cryptocurrencies. To carry out operations, the client will be credited with an equivalent amount of funds, while the cryptocurrency itself will remain in the storage.

At the same time, companies will need a processor and a sufficient amount of memory to store private keys to the cryptocurrency wallet. Transactions are possible with the appropriate authorization.

"In order for the client to be able to carry out transactions with his cryptocurrency, the company will provide him with access to the account associated with his assets," Bank of America notes.

According to the developers, the patented system imposes more moderate requirements for network bandwidth and memory, and consumes less computing and energy resources.

source forklog.com

Bank of america is one of the most pro-crypto and anti-crypto company I have ever seen. They are both getting crypto and blockchain patents and trying to use them in work fields and try to get other companies to use their patents and their blockchain/crypto products for a better use of their banks. At the same time they talk like bitcoin is end of the financial world we live and will make all of our money gone in a second (they might be right on that looking at yesterdays moves).

I am pretty sure they love crypto and they love blockchain but they just hate bitcoin with a burning passion. I do not understand it too much, maybe I am reading too much into this but if they were so much in love with blockchain technology wouldn't it make sense to love bitcoin as well?

[Akpuv]

The financial conglomerate Bank of America has developed a mechanism that will allow large companies, including exchanges and custodial services, to store cryptocurrency assets of their clients. According to CoinDesk, the Bank received the corresponding patent on Tuesday, November 13.

The document says that the financial institution will need to have a single corporate account suitable for storing cryptocurrencies. To carry out operations, the client will be credited with an equivalent amount of funds, while the cryptocurrency itself will remain in the storage.

At the same time, companies will need a processor and a sufficient amount of memory to store private keys to the cryptocurrency wallet. Transactions are possible with the appropriate authorization.

"In order for the client to be able to carry out transactions with his cryptocurrency, the company will provide him with access to the account associated with his assets," Bank of America notes.

According to the developers, the patented system imposes more moderate requirements for network bandwidth and memory, and consumes less computing and energy resources.

source forklog.com

The fact that the Bank of America is indicating interest in cryptocurrency assets is a laudable thing. But I really don't think it is necessary for us to bank our cryptocurrencies with a bank, when we can simply operate our individual secret wallets.

[dothebeats]

Isn't this putting the same middleman bitcoin and cryptocurrencies have tried to avoid and resolve? In this case, people will be forced to entrust their money again to a financial institution only to use it and ensure that everything is used towards legal transactions, in exchange of paying a fee of course. While this may attract a lot of people in the long run, I do believe that this somewhat kills what bitcoin is all about. We don't need banks meddling with our business, we need merchants who believe in bitcoin and cryptocurrencies power to change e-Commerce and its peers' views on cryptocurrencies.

But then again, I'm just another voice in the crowd. Many would love to have Bank of America toy with bitcoin and crypto for publicity and profit's sake.

[ganlianshifu1]

The bank only wants to make money!
The competition in the traditional financial model is fierce, so the bank is eyeing the cryptocurrency!
The cryptocurrency is still in the early stages of development, and it will be profitable when it enters the market early!

[bayu7adi]

bitcoin should not be centralized by anyone, bitcoin must stay like this and if you want a centralized coin, there is an XRP that is still a public conversation about the system they are implementing, Bitcoin will still be a p2p transaction tool and will never involve any institution when the transaction occurs
including the bank of america which may not interfere in the transaction process into a third party

[BrewMaster]

apart from the obvious fact that was mentioned in the first reply (bitcoin doesn't need any centralized middleman) i was thinking that this may increase the security of exchanges and prevent them from being hacked and things like that.

i think that at first it may be introduced as more secure,... but eventually the same hacks would occur. because the system is still the same. there is some secret information that if the exchange doesn't protect it will be hacked. and unless this bank asks for other assets to back the funds in case of hacks, i don't see any improvement whatsoever...