Huge Coinbase announcement and why you should care!
In case you missed it here is the announcement about Coinbase.
Coinbase Receives NYC Regulator’s License to Offer Litecoin and Ethereum
The company said it was also approved to offer users in New York access to 'Shift Card'
"New York’s financial regulator, the state Department of Financial Services (DFS), announced today that Coinbase’s licensing application to offer Ethereum and Litecoin has been approved, based on its positive review of the company’s policies.The San Francisco-based company said it was also approved to offer users in New York access to ‘Shift Card’, a Coinbase linked debit card service.
The state license allows Coinbase, Inc., a wholly owned subsidiary of Coinbase Global, Inc., to offer services for the Ethereum network, a cryptocurrency and blockchain platform, as well as its digital cryptography-based asset, dubbed ‘Ether’.In addition, the regulator authorised the usage of Shift Card, a Visa-branded debit card that allows Coinbase users to spend bitcoin both online and at physical points of sale at over 38 million merchants worldwide
. Finally, receipt of the New York license will allow Coinbase to expand its business opportunities in the state after adding Litecoin to its permitted virtual currency portfolio.To date, the financial services department has approved five firms for virtual currency charters or licenses, while denying those applications that did not meet its standards. Coinbase joined four other rivals that previously gained ‘BitLicenses’ from the DFS to operate in New York.
DFS Superintendent Maria Vullo commented on the granting of the new licences: “New York continues to lead the nation in fostering financial technology by responsibly promoting innovation and protecting consumers. DFS has proven that the state regulatory system is the best way to supervise and cultivate a thriving fintech industry, like virtual currency. New York will remain steadfast in pushing back against federal encroachment efforts like the OCC’s proposal to impose a one-size-fits-all national bank charter that increases risk and seeks to usurp state sovereignty.”
Brian Armstrong, Coinbase CEO and co-founder added: “At Coinbase, our first priority is to ensure that we operate the most secure and compliant digital currency exchange in the world. New York is an important market and we look forward to expanding our services for New York customers as swiftly as possible.” "
Aziz Abdel-Qader | Exchanges (CryptoCurrency) | Wednesday, 22/03/2017|19:19 GMT
Why you should care
If you are thinking to yourself "I have been trading Ether or using the Shift card for months now or longer, what's the big deal?"
Let me tell you...
Some articles seem to be confused, stating this is allowing trading in NYC, that is incorrect, it is the entire State of New York.
New York State is one of the most regulated states in the entire country. The fact that this was finally approved in the state is a good sign for future cryptocurrency development in New York, the United States and the world.
This will affect cryptocurrency internationally because of the symbolism of the announcement.
New York is widely regarded as the financial capital of the world, aside from perhaps London. Allowing trading of cryptocurrency and implementation of related products such as shift in NYC, signals to the world that cryptocurrency will be part of the future and it has support among traditional financial institutions. This announcement may mark the start of a new phase for cryptocurrency within the circles of finance.
Second, is the opening of a new market. New York State has a population of 19.75 million people. These people now have easy access to Ether and the option to use the BTC debit card shift. Obviously the majority of New Yorkers will not be flooding into cryptocurrency because of this one announcement, however this provides ease of access which we all agree is crucial for moving cryptocurrency forward among the populace.
Lastly, I believe this also signals a change in mentality. Most people still do not use crptocurrency, and if they have heard of it they might know something about Bitcoin. The fact that Altcoins are receiving attention from governments and financial institutions legitimizes there existence and use. The plans for Litecoin may hint at the integration of many more Altcoins in the future. Bitcoin is no longer a novelty...
Cryptocurrency is becoming more established by the day and it is here to stay.
Follow my blog @digicrypt if you are interested in cryptocurrency, cryptology or privacy.
DASH: XgQ9NBonMoCPKhF37agY4W8zk7gwQFnwGV
Ether: XE04RO3I0QA5UKB31OZK4O3CK3TOT03R4TM
