If You Can’t Beat Crypto... Lead It

The OCC recently issued a news release allowing US banks to engage in cryptocurrency operations. This development was both expected and promising, following similar moves in other countries where major banks have been handling crypto transactions for some time.

It's been frustrating to watch US banks lag behind, even going as far as blocking customer accounts for merely making crypto-related transfers. This aggressive stance pushed crypto-fiat operations outside US jurisdiction but maintained banks' control over financial flows.

Many view cryptocurrency as a potential disruptor to the traditional banking system. The move by US banks to join this space might signal they're finally admitting defeat and choosing to align with the stronger player – following the adage "If you can't beat them, join them."

However, there's one concerning detail in the OCC release: banks are now authorized not only to hold cryptocurrencies but also to act as validators in blockchains.

This means that instead of relinquishing control as cryptocurrencies intended, banks have gained new control mechanisms. We'll likely soon see blockchains where the vast majority of validators are controlled by banks.

For Proof-of-Stake blockchains, this takeover is relatively straightforward. Banks have abundant financial resources – our deposits – to control such networks. They can simply move these funds into blockchain staking and gain significant control.

Fortunately, not all of the crypto industry has abandoned Proof-of-Work principles. Banks would struggle to control these blockchains as they would need to spend their money on equipment and electricity – not just stake our deposits they hold.

The future belongs to Bitcoin and similar cryptocurrencies that remain beyond bank control. And you can exchange all of these on rabbit.io – completely free from bank oversight.