FED publishes new guidelines for access to US banking system

The Federal Reserve (FED), the American Central Bank, published a new guideline system for financial institutions last Monday. These new guidelines should allow bitcoin banks to access so-called ?ǣmaster accounts?ǥ with the Fed, which is necessary to participate in the global payment system.

The guidelines would allow bitcoin banks, such as Kraken Bank, to become an officially registered bank. At the moment, these parties are often dependent on other commercial banks, which is not ideal.

Kraken Bank manages bitcoin and other cryptocurrencies for customers and thus have a great responsibility. The recognition as an official bank ensures legitimacy both within and outside the bitcoin sector.

The new guidelines ensure a consistent and transparent review process for Federal Reserve accounts to enable financial institutions to access payment services and support a secure, inclusive and innovative payment system. Lael Brainard, Vice Chairman Federal Reserve

When banks are admitted to the US banking system and recognized by the Central Bank, this brings a number of benefits. The guideline system works with a rank system. If a bank falls in rank 1, the Fed is fully guarantor. Tier 2 is supervised by the Fed, which therefore offers more transparency. Rank 3 is not supervised. The Fed is also not a guarantor.

Bitcoin banks will most likely be categorized in rank 3. Although it is still questionable what exactly the consequence of this is, according to David Kinitsky, the CEO of Kraken Bank, it is a good step for his company.

Earlier this year, Kraken Bank received a ??????routing number???????, a 9-digit number that serves as the address for a registered bank. According to Kinitsky a good step towards obtaining an official bank registration and access to the Central Bank system.

Whether bitcoin banks are actually recognized as official banks remains to be seen. In any case, it is a promising development.

Not only the American Central Bank is busy with bitcoin, also the European one.

 

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