Cryptocurrency gets warm Texas welcome from Gov. Abbott

CRYPTO BOOM: Rappers everywhere are getting in on the fun with cryptocurrency

Now, as first reported by Natalie Walters at The Dallas Morning News, Texas banks will have the ability to present crypto banking providers.

The Texas Division of Banking announced Thursday that state-chartered banks have the authority to offer custody or safekeeping providers for digital currencies.

Marcus Adams, the state banking division’s assistant basic counsel, stated it is good that Texas was in a position to get in entrance of the cryptocurrency increase. Adams advised the Morning Information that “Texas is seeing the rise within the digital foreign money trade and attempting to get out forward of it and guarantee our regulated banks are ready to stay aggressive.”

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If somebody has shares of Bitcoin or different digital currencies like Ethereum or Litecoin, they can provide that duty to a third-party financial institution in Texas. The financial institution can retailer a replica of the important thing as they do with vital paperwork, or the shopper can switch the cryptocurrency into one of many state-chartered banks. 

The Texas Division of Banking announcement comes earlier than Abbott’s signing ceremony for the forthcoming “Digital Forex Invoice” that acknowledges digital currencies’ legality. Texas would change into the second state after Wyoming to acknowledge blockchain and cryptocurrency. 

Abbott is seemingly on board with digital foreign money, as he is shared a number of tweets in help of the invoice. 

“Blockchain is a booming trade that Texas must be concerned in. I simply signed a regulation for Texas to create a grasp plan for increasing the blockchain trade in Texas,” Abbott tweeted out final week.

Though this new position is offered for banks, not all will likely be able to taking it on as soon as threat administration is assessed.