Wyoming To Host World’s First Cryptocurrency Bank
In just a few months, what will likely be the first cryptocurrency "bank" will be operating in Wyoming.
I'm sure you are used to the idea of a bank having a vault with actual cash and other valuable things on hand. Now, welcome to the digital age, where the score keeping for money is all in a computer. The vault will be a virtual one to keep hackers out.
According to Wyoming Business Report this potential bank will manage what is known as "blockchain technology". "Blockchain is a ledger platform to administer cryptocurrency transactions. These records consist of pieces, or “blocks,” of information like date, time, dollar amount and participants in a transaction."
As with any form of currency there are advantages to bitcoin and disadvantages. Those in the business industry acknowledge the downsides and are looking for ways to solve those problems.
Wyoming was the first to build a legal framework for cryptocurrency and is now the first to create legal framework for a new banking cryptocurrency.
It was in 2019 when the state legislature passed a bill establishing "Special Purpose Depository Institutions (SPDIs)."
If you think about it, most transactions today are digital. Credit and debit cards and online baking have made it so. Most financial exchanges worldwide are just numbers passing through the internet. Cryptocurrency, therefore, is just the natural result of what is already happening.
Applications for banks are now being accepted. So where will the first bank be? Or does that matter? It's all online. The answer is that a few companies, such as Avanti Financial Group, say that they will probably be based in Cheyenne.