This has been an incredible week for Bitcoin and it has gotten even better as the oldest bank in the United States, BNY Mellon, announced that it gets on the crypto bandwagon. According to the Wall Street Journal, the US investment bank said it will provide custody service for Bitcoin and other cryptocurrencies for all of its clients.
Bitcoin's trickle is turning into a flood
Recently, it seems that an avalanche of companies is joining cryptocurrencies. Tesla's $ 1.5 billion Bitcoin purchase is perhaps the most significant hit to date.
But a whole new dynamic comes into play with the participation of BNY Mellon. In general, banks have been the most prominent skeptics of cryptocurrencies. Why? Because cryptocurrencies are a threat to your operations.
“The main reason banks are concerned about blockchain technology is the fact that innovative fintech products threaten monopoly banks currently operating globally. Furthermore, blockchains are driving change across the industry, while banks are absolutely terrified of change given their generosity and cumbersome operations. ”
But as Bitcoin continues its upward journey, naysayers are gradually becoming calmer. More importantly, the increased demand for cryptocurrencies has caused previously skeptical bankers to reconsider their position.
Roman Regelman, executive director of digital business and asset services at BNY Mellon, admitted that things are changing.
"Digital assets are becoming part of the mainstream."
Mastercard also wants to enter
Regelman's message rings true for payment giant Mastercard, who, like rival firm Visa, has expressed doubts about cryptocurrencies in the past.
In 2018, Mastercard CEO Ajay Banga called cryptocurrencies junk. He added that a wildly fluctuating value does not fit the description of a store of value. However, over time, Mastercard began to soften its stance towards cryptocurrencies.
Yesterday it announced that it would support "select" cryptocurrencies directly on its network. The firm says its approach is to offer clients the option to use it if they wish.
"Our philosophy on cryptocurrencies is simple: it's about choosing … It should be your choice, it's your money. "
Don Guo, the CEO of Broctagon Fintech Group, said that acceptance of Bitcoin by institutional players of the caliber of BNY Mellon, Mastercard, and Tesla will certainly attract others to follow.
“The introduction of NY Mellon and Mastercard to the cryptocurrency space, following recent news from Tesla, signals another price boom for Bitcoin. Such large institutional backing will drive digital assets even further on the main stage this year, and we expect greater acceptance as a result of the general attention. "
Guo added that the underlying problems in cryptocurrencies still exist. But he hopes that the arrival of important institutional players will bring a level of maturity to the sector.