Crypto bank in Wyoming
Caitlin Long, a former Wall Street executive who helped enact 13 blockchain regulations in Wyoming, USA, is now using local progressive legislation to establish the first crypto currency bank in the US. The bank’s name is Avanti, which means “forward” in Italian. It will be important step in the mortgage structure in USA.
Subsequently, Long made this announcement through a series of 29 Twitter posts. He believes that “there is a critical portion of the market infrastructure in the USA. Namely a specific regulated crypto bank that can act as a bridge to the Federal Reserve for Payments, and offer custody even for large institutional money.”
However, the relevant laws also impose stringent regulatory requirements in this area.
Firstly, under the current law, all crypto bank deposits must be 100% covered. At least in the case of Avanti, in the form of cryptocurrencies. Avanti will also not be able to use deposits for its financial operations, a practice also known as ‘mortgage refinancing’. It is necessary to observe the collection of strict information about all customers, and so on. Long also warns directly. Never attempt any illegal operations through Avanti. There is no chance that you will be able to go through such behaviour at any crypto bank. Long expects Avanti to open its doors in early 2021. If it is right, it could lead to a significant influx of new liquidity into the market. We are cheering.
Conclusions about crypto bank
It could be the historic breakpoint for all cryptocurrencies. If everything goes right, you should be able to you at least Bitcoin for a mortgage, and other banking products. But we will see how it works with the first transaction and offered services from the first crypto bank. Remember, every new technology needs some time for proper implementation. It is still better to do it slower and correctly, than to don’t do anything.
If you are wondering about Wyoming, here you can read more about it: https://en.wikipedia.org/wiki/Wyoming