Speculations on Bitcoin Platform for Customers Proved False
Major multinational bank was testing the system serving as the Bitcoin market. The rumors about a Standard Bank implementing a Bitcoin exchange platform for their customers proved to be utterly incorrect.
Probably you’ve heard the media whispering that a major multinational bank was testing the system serving as the Bitcoin market. However, the rumors about a Standard Bank implementing a Bitcoin exchange platform for their customers proved to be utterly incorrect.
First, to bring you up to the speed. The speculations began 11th February, during the first day of a major financial event called Finovate Europe 2014, which is held in Old Billingsgate Market, London. This showcase is dedicated to bring innovative technology to the wide public.
The rumors flowed after the presentation in which Switchless (a software solution developer based in Singapore) showed the platform that it was testing among its employees. The internal pilot was held by the South African Standard Bank, which is not only the part of the Standard Bank group, but also is claimed to be the continent’s largest bank.
When the first tweet signaled of such thing being developed, the cryptocommunity met the news with mixed opinions. Some individuals saw this as a good opportunity for Bitcoin to finally get a big tasty piece of public acceptance, closing the page of distrust and fear of cryptos. In this light, banks would act as the official Bitcoin markets already having a vast base of users, opposed to the current big exchange platforms, which have not yet earned the respect of the mass audience. Again, banks represent guarantees and security for the deposits and in a time, after they amassed enough of digital coins, the BTC price would probably stabilize. Certainly, it could only happen in the scenario, where governmental regulator would show their approval for this platform
However, there were opposing views. Quoting the Executive Director of the Bitcoin Foundation, Jon Matonis:
“This picture threatens bitcoin exchanges more than government regulators (via @netbanker) #Finovate pic.twitter.com/Zxvgu0PvJ2”
And I can see why. Having a much larger finance base than current international and local exchanges would probably begin soaking in their predecessors. This would choke the whole idea of Bitcoin. The cryptocurrency would cease to be decentralized and governments would be able to impose strict regulations on it, while, at the same time granting digital coins the official status. What that turns Bitcoin into? Right, your good old money, wrapped in a fancy crypto-image.
Well, until something similar comes up we would never know for sure, as the platform’s test was just a part of a much larger research on “Internet-based financial services”.
Even though the storm has come and gone, I won’t let you, dear readers, so easy. As you’ve probably noticed, we here at Cointelegraph really like to hear the opinions that You post. So, what scenario seems more plausible for you, or maybe you would suggest something else? Are you for or against the idea of banks integrating a Bitcoin exchange? Let us know!