Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Louisiana’s governor signed the bill into law last week. Now banks in the state that is home to the city of New Orleans will be able to hold cryptocurrencies.
- Governor of Louisiana, in the U.S., signed the bill into law.
- Louisiana banks will now be able to hold Bitcoin and other cryptocurrencies.
- Another effort to integrate cryptocurrencies into the financial system in the U.S.
Following the passage of a new regulation, financial institutions in the U.S. state of Louisiana will now be allowed to hold Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. on behalf of your clients.
Louisiana Governor John Bel Edwards signed into law House Bill No. 802, which for the first time allows banks and financial institutions registered in that state to operate as custodians of digital assets. According to the public records The governor signed the regulation on June 15 and it will become effective this August.
The enthusiast and CEO of the organization Satoshi the smallest unit of bitcoin with a value of 0.00000001 BTC. Action Dennis Porter, reported the news via Twitter on Wednesday. For his part, the director of Pelican Center for Technology and Innovation , Eric Peterson, who supported the project, t also communicated on the enactment of the new law in a tweet . The news media Finbold reported .
– Dennis Porter (@Dennis_Porter_) June 21, 2022
Sponsored by Louisiana State Representative Mark Wright, the intent of the project was to push for the integration of cryptocurrencies such as Bitcoin to the operations of the state’s financial entities.
As you can read in the legislative document No 509, “ relating to digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets”. your goal is to “provide definitions; allow financial institutions and trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. companies to act as custodians of digital assets; provide parameters and procedures; and provide related matters “.
Banks will be able to hold Bitcoin in custody
The legislation, which takes a step towards the adoption of cryptocurrencies in the southeastern U.S., also has some highlights, including a requirement for banks that choose to be custodians of this asset class. Under the law, entities will be required to carry comprehensive insurance to cover and guarantee restoration of losses from hacks or cyberattacks.
“ A financial institution or trust company may provide virtual currency currency is a medium of exchange that defines value. custodial custodial cryptocurrency businesses are the ones that are in possession of their customers’ funds for the duration of the use of their services. services to its customers if the financial institution or trust company has appropriate protocols for effective risk management and comply with applicable legislation “, says the law, which adds further on:
If a financial institution or trust company decides to offer such services, [it] must do all of the following:
(1) Implement effective risk management systems and controls to measure, monitor and control the relevant risks associated with the custody custody is a financial institution's legal capacity to keep and preserve financial assets for its clients to avoid asset theft or loss. of digital assets such as virtual currency.
(2) Confirm that you have adequate insurance coverage for such services.
(3) Maintain a service provider monitoring program to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the risks of provider relationships….
On the other hand, as reported by the mediaThe AscentThe legislation also hints that banks may opt for two types of custodian: non-fiduciary and fiduciary. In the first case, the entity would only hold the assets for safekeeping, while the client a client is software that can access and process blockchain transactions on a local computer. A common application of this is a cryptocurrency software wallet. would retain the legal title and private keys needed to trade cryptocurrencies.
In the second case, the bank would act as a fiduciary on behalf of the client, taking control of both the cryptocurrencies and the private keys so that the institution can actively trade and manage the portfolio a collection of cryptocurrencies or crypto assets held by an investment company, hedge fund, financial institution or individual. on behalf of the client as it would with stocks, bonds, exchange-traded funds or mutual funds.
Crypto-adoption efforts in the U.S.
The signing of the bill in Louisiana is the latest legislative effort in the United States to integrate cryptocurrencies with the traditional financial system. Just a few weeks ago, Senators Cynthia Lummis and Kirsten Gillibrand introduced before the national Congress a historic bill to comprehensively regulate the digital asset ecosystem.
While that proposal is still in the early stages of discussion, it adds to the independent efforts of several states across the country that are pushing cryptoasset a cryptoasset is any digital asset that uses cryptographic technologies to maintain its operation as a currency or decentralized application. adoption. Major cities like Miami, New York and Texas have moved to integrate cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. payments and encourage adoption of their underlying technology, Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. .
As for Louisiana, this isn’t that state’s only effort toward crypto. According to reported Finbold the representative Wright, who is a well-known cryptocurrency enthusiast, has also proposed a regulation that would allow the creation of industrial power regulation free zones for the state.
El proposed law No. 1010 raises the designation of ” a tract of land within the parish as a power zone. “a movement that, according to some, such as Eric Peterson, I could do of Louisiana an attractive place for miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. to work in. Bitcoin .
- For the first time in Florida, a credit union to offer Bitcoin trading
- California Governor signs executive order for state agencies to closely study blockchain and cryptocurrencies
- Fort Worth City Council in Texas approved pilot and city council to start mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. Bitcoin
Article by Hannah Estefania Perez / DiarioBitcoin
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