US Banks to Allow Customers Purchase Bitcoin with their Bank Accounts
Crypto enthusiasts in the United States will be able to purchase bitcoins via their bank accounts by the end of 2021, following an announcement by cryptocurrency custody firm, NYDIG.
US Banks Yielding to Pressure
There have been talks in the past about digital currencies ever making it into mainstream culture, but that is just what they are: the past. With recent developments in the cryptocurrency space becoming so prominent, it appears digital currencies cannot be ignored much longer.
New Digital Investment Group (NYDIG) revealed on Wednesday that customers of specific banks in the United States would be able to transact bitcoin through their existing bank accounts before the end of this year.
Digital currencies are fast fusing themselves with mainstream transactions. Doge’s increasing adoption is only one example. With people finding more reasons to invest and hold their crypto, or send money to crypto exchange wallets, exchanges like ChangeNOW are gradually becoming a worthy competition for banks.
According to Patrick Sells from NYDIG, the firm will be rolling out initial bitcoin products which would be followed by other services such as debit card rewards. There are also plans to create a new bank account type that pays interest in bitcoin and is fully insured by the FDIC.
Sells, who heads Banking Solutions at NYDIG, explained that while several banks in the States would be facilitating bitcoin transactions before 2021 ends, major US Banks like JP Morgan are yet to jump on the train. However, he does not expect the hesitance to last too long.
Competition is one of the reasons US Banks are jumping on the train, and it won't be long, according to Sells, before the pressure gets to major American Banks as well.
Sells stated that they are trying to make things easy for Americans and the US-based organizations to purchase bitcoin without having to create another banking relationship. Customers can use their mobile banking apps to buy, sell, and hold bitcoin at their conveniences.
The world is changing fast, moving fast, and the crypto industry is one of the leading fronts in this movement. Banks have maintained respectable distance to digital currencies in the past, finding performative uses for blockchain to ease into the new technology. Except the technology isn’t new anymore. It has become a staple and a stable alternative to fintech solutions. American banks recognize that now, and are officially in a rush to ride the wave.