Canada’s Largest Bank Mulls Crypto Exchange After Bitcoin Ban — Report
Royal Bank of Canada previously stopped account holders buying Bitcoin with its cards, but is now reportedly interested in launching a crypto trading platform.
As innovation economy news outlet The Logic reported on Nov. 11, the Royal Bank of Canada (RBC) is now rumored to be considering the plans.
RBC reportedly planning multifunctional exchange
RBC is the largest bank in Canada by market capitalization, with $661 billion CAD ($499 billion) in assets under management.
According to The Logic, the bank is entertaining the possibility for the exchange to function both for investments and allowing clients to make purchases online and in brick-and-mortar stores.
The news follows a previous report that Canada’s central bank wanted to use digital currency in order to better track consumer spending habits.
“The trading platform would facilitate buying and selling of individual digital coins, including Bitcoin and Ether (ETH), as well as the transfer of funds combining different types of cryptocurrencies,” the publication summarized.
Bitcoin purchases “not allowed”
While little detailed information is currently available, the move would run conspicuously in contrast to RBC’s current modus operandi on cryptocurrencies. Last year, the bank abruptly banned clients purchasing Bitcoin or altcoins with credit and debit cards.
“Effective immediately, RBC will no longer be allowing the use of RBC credit cards for transactions involving cryptocurrency. We regret any inconvenience this may cause,” a notice stated at the time.
Nonetheless, attention has since focused on how authorities will handle the fallout from QuadrigaCX, a local cryptocurrency exchange that imploded in late 2018. While recovery of lost funds is ongoing, users lost a total of around $190 million in deposits.