Posted on 06/12/2021 3:35:21 PM PDT by Norski
"This notice affirms that Texas state-chartered banks may provide customers with virtual currency custody services, so long as the bank has adequate protocols in place to effectively manage the risks and comply with applicable law.
While custody and safekeeping of virtual currencies will necessarily differ from that associated with more traditional assets, the Texas Department of Banking believes that the authority to provide these services with respect to virtual currencies already exists pursuant to Texas Finance Code § 32.001. . . "
" . .Virtual currency is an electronic representation of value intended to be used as a medium of exchange, unit of account, or store of value. Virtual currencies do not exist in a physical form. Instead, they are intangible . . ."
". The owner of the virtual currency holds cryptographic keys associated with the specific unit of virtual currency in a digital wallet. The keys enable the rightful owner of the virtual currency to access and utilize it further. What virtual currency custody services a bank chooses to offer will depend on the bank’s expertise, risk appetite, and business model.
For instance, the bank may choose to allow the customer to retain direct control over their own virtual currency and merely store copies of the customer’s private keys associated with that virtual currency. Alternatively, the bank may . . ."
". . .The bank will have to determine which storage option best fits the circumstances. . . "
"The Department has previously determined that custody services may be provided by a Texas state-chartered bank in either a fiduciary or non-fiduciary capacity. In providing such services in a non-fiduciary capacity, the bank acts as a bailee, taking possession of the customer’s asset for safekeeping while legal title to that asset remains with the customer. . . ."
(Excerpt) Read more at dob.texas.gov ...
Believe that it deserves discussion. Looking for persons with experience to discuss this.
Remainder of notice at the link provided.
PLEASE READ THE ENTIRE NOTICE BEFORE COMMENTING to avoid unnecessary conflict and inaccuracy.
Thank you.
If you don’t hold it, you don’t own it.
Would you let someone else hold your gold for you ?
Lots of people let the US govt do that in the past.
I even have some gold and silver certificates that I can get gold coin, or 1 dollar in silver on demand from the US Government, but they refuse to honor them.
This came to mind, yes.
Also understand that a ransom paid in bitcoin to business hackers recently was recovered by a governmental agency. - Colonial Pipeline, possibly?
Wondering how that was accomplished. Should it not be impossible with cryptocurrency?
The federal government is not a law abiding entity nor has it been since FDR and company overthrew governance by constitutional means in favor of Arbitrary government.
Their seizure of people’s Money and tangible assets so they could then subsequently reduce the value of the paper notes that they demanded that people take in place of their Money only demonstrates their corrupt nature. It was theft from the people on a National scale,
Since people can maintain a copy of the key then possession of the Bitcoin is itself dependent on the history of its transaction.
Oddly these crypto currencies are very much like the giant coins of Yap, whose current ownership is entirely dependent on each coin’s oral history of ownership. It should be further noted that even stone coins lost to the sea in transport from where they were made their value is still maintained since the oral history for each is able to be maintained. In general none of the coins is physically moved anyway once in place.
Something weird going on in TX.
Abbot talking about sending cops from other states to the border and building a TX wall while this is happening?
Hm. Link or image?
Secession planning?
From : https://phys.org/news/2019-06-team-ancient-digital-currency.html
“”They are one of the world’s most intriguing coins,” he said. “Carved from limestone quarries located in the Palau islands some 250 miles from Yap, they’re the largest objects ever moved over the open Pacific Ocean during the pre-European contact era.”
Up to 12 feet in diameter and weighing tons, the coins were typically placed in prominent—and permanent—locations upon their arrival in Yap.
“They aren’t the sort of thing you’d want to move more than once,” Fitzpatrick said.
Still, the Yapese continued to exchange rai following these initial placements, using an oral ledger that tracked the coins’ value and any changes in ownership.
“They were used for key social transactions like marriages and ransoms,” Fitzpatrick said. “Each exchange was recorded in the oral history which functioned as a public ledger, maintaining a continuous chain of information and preventing disputes over ownership.”
Bitcoin operates in much the same way. The cryptocurrency relies on blockchain, a digital ledger that verifies transactions across a computer network and makes transaction histories available to everyone who participates in the network.
“As with the rai stones, information about bitcoins’ value and ownership is managed collectively; it’s a distributed financial system as opposed to the more familiar, centralized systems involving third-party financial institutions,” said McKeon, academic director of the Cameron Center for Finance and Securities Analysis in the Lundquist College of Business.
Fitzpatrick and McKeon speculate that the Yapese community ledger system may have informed the development of bitcoin centuries later.. . .”
election blue smoke from Abbott
Sure, hand your private keys over to a stranger. Nothing bad ever happens when people do that. /s
Not your keys, not your crypto.
However, an appropriately regulated bank/financial institution could allow transfer of your crypto to their wallet, and give you a credit denominated in that crypto.
If a company like Vanguard offered this service, I would probably store my bitcoin with them. This would allow anyone who is a long term hodler of BTC to not have to worry about losing your coins since there would be some level in insurance. Sure, the Feds could seize it, but they could seize everything you own right now, so we have to assume they won’t. If they were to do that, ‘it’s on”, so the entire system is done anyway.
El Salvador just adopted BTC and it’s probably just the first. This means even if BTC is going from 41k to 31k, back and forth, it’s headed up. At some point, probably within 10 years it’s going to 500k or more.
Wondering how that was accomplished. Should it not be impossible with cryptocurrency?
In order to maintain control of bitcoin you need to maintain exclusive control of a cryptographic key, the private key. This key allows you to digitally sign a transaction to move the bitcoin. So, to recover the ransom, they needed to acquire this key or find someone with access to the key willing to help.
I understand that the FBI seized the hacker's web site. Maybe the site stored the private keys. Or they may have traced the bitcoin payment being sent to an exchange to be traded for fiat currency so the exchange had control of the bitcoin.
El Salvador.
Next door to Guatemala, between Medellin and USA. On the ocean and very small.
Quite convenient for Cartels.
Bitcoin key sounds like hot potato.
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