Brian Brooks, the US’s top regulator and acting currency controller, made a notable debut, saying banks should provide Bitcoin and cryptocurrency custody services for their customers.
“Banks Should Take Action”
Speaking at the recent LA Blockchain Summit, Brian Brooks said that cryptocurrencies are not as different as many Americans think. Brooks used the following statements on the subject:
There are currently 40 or 50 million Americans who own cryptocurrencies. This shows that they are not widely understood. I think the average person on the street believes cryptocurrency is a very unusual and truly different world. But actually it is not. If the national banking system is to take on the role of providing safe havens for people to store and process value, then it should include the financial assets that people have at any given moment, and cryptocurrencies are one of them.
In July, the Currency Supervisory Office (OCC) issued a document stating that banks can hold cryptocurrencies on behalf of their customers. It was stated in the document that banks have to meet the financial service needs of their customers today and that tens of millions of Americans have cryptocurrencies today. Since then, several US banks have shown interest in this idea.
Brooks, the former manager of the cryptocurrency exchange Coinbase, believes the purpose of this document is to “enlighten” cryptocurrencies and to “acknowledge that they are a class of assets that many customers want to have”. According to that:
The custody side understands this and says, “Look, the market is talking. People want this. Banks play a role. Do what you need, ”he says.
The deputy auditor says his office is not an advocate or competitor of cryptocurrencies. He adds that as a regulator, they want to provide a framework that controls cryptocurrencies without overwhelming them.
“Decentralization Will Not Be Stopped Up To A Point”
It did not go unnoticed that Brooks also mentioned that decentralization in the future of finance will probably not stop until a certain point:
I once needed a bank that would decide if I was creditable if I didn’t know about you and handle the loan I could give you and set the interest rate. But now suddenly, in computer networks connecting blockchain nodes (blockchain nodes), it’s really possible to do some of these things without the need for an intermediary ledger, and so the vision of [cryptocurrency] is that finance will one day look a lot like communication. This network will continue its way. The point is that these trend lines are probably unstoppable at some level and we need to frame it in a certain way. This means that people will no longer be defrauded in that future than they are today.