Libra’s global ambition could trigger antitrust risks: French Finance Minister
Owner of Burj Khalifa, world’s tallest building, launching its native token on JPMorgan’s blockchain
CIMB Bank executes first trade financing transaction on iTrust blockchain
Silex Insight introduces Hardware Security Module (HSM) for Xilinx FPGA devices
France’s Le Maire Attacks Facebook’s ‘Political’ Ambitions With Libra
CFTC Files Lawsuit Against $11 Million Crypto Ponzi Scheme
Major Singapore Bank Completes First DLT Trade Financing Transaction
Libra’s Backing Members Officially Sign The Projects Charter
Privacy-focused Brave browser boasts 8M monthly active users
Dubai property developer Emaar launches blockchain-based rewards token
BiboxEurope Announces Yet Another Development – Fiat Trading for Quality Projects
No, Pepsi’s ‘Pepcoin’ Is Not a New Cryptocurrency
Bank of England Governor Says World Needs Rebalancing Away From US Dollar Hegemony
Blockchain-Shy Bank of America Quietly Pilots Ripple Technology
Bitpanda Users Can Now Pay Bills With Crypto
OKEx: Redefining the Blockchain Industry
Bank of Canada to Fight Crypto with Own Digital Currency
Shellfish Plant Is Putting Scallops on IBM’s Food Tracking Blockchain
Bitcoin Price Struggling to Hold Above $8,000
Netflix Stock Price Shoots Northwards as Q3 Earnings Beat Estimates
Interest by CMC Feature on CoinMarketCap Publishes Interest Rates on Cryptos
Samsung SDS Is Testing Blockchain-Based Medical Insurance Network
ABN AMRO Trials Bitcoin Wallet Where Bank Holds Private Keys
Dutch bank ABN AMRO has unveiled cryptocurrency storage facilities which will see its clients able to deposit Bitcoin (BTC) alongside fiat currency.
500 Clients Trial Bitcoin Storage
In what appears to be a marked change of stance on the sector, officials confirmed a trial was underway with 500 account holders on social media January 22.
According to marketing literature uploaded to Twitter, ABN AMRO aims to offer Bitcoin storage in the same online banking environment customers use for their day-to-day activities through a product called ‘Wallie.’
The move sees ABN first to provide direct Bitcoin tools out of the major Dutch banks, beating off competition from Rabobank, which had announced a similar project, ‘Rabobit,’ in February last year.
In a sign of the experimental nature of its Bitcoin integration, ABN’s official webpage on cryptocurrency still states the bank does not support it.
“…Cryptocurrencies are not controlled, issued or guaranteed by a central bank,” it warns.
De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) have regularly published press releases over the past period in which they warn investors and consumers of the risks of cryptocurrencies. You can not therefore invest in bitcoins or other cryptocurrencies at ABN AMRO.
Friend Or Foe?
Hoi! Jazeker! Heb je dit bericht ontvangen? We doen op dit moment een experiment met 500 klanten. :) ^Roeland
— ABN AMRO (@ABNAMRO) January 22, 2019
The exact reasons for the change of heart remain unknown. In its current form, the Bitcoin wallet constitutes something of a compromise; users will not hold their private keys, while the bank says it will provide insurance guarantees for up to €6,000 worth of funds.
Rabobank had similarly surprised when it revealed its wallet plans, having also put out highly critical material on Bitcoin.
For many cryptocurrency advocates, however, even custody ‘solutions’ such as ABN’s cause frustration rather than celebration.
Consumers’ lack of control over their private keys, and hence actual control of the bitcoins, mean they are not actually embracing Bitcoin at all, some argue. In short, custodial ‘ownership’ of bitcoin goes against the reason why Bitcoin was created in the first place: removing trust and middlemen from money.
Earlier this month, an event organized by entrepreneur Trace Mayer even attempted to spark the opposite effect – making Bitcoin users withdraw all their capital from trusted third parties.
What do you think about ABN AMRO’s Bitcoin wallet trial? Let us know in the comments below!
Images courtesy of Shutterstock
The post ABN AMRO Trials Bitcoin Wallet Where Bank Holds Private Keys appeared first on Bitcoinist.com.