U.S Controller of the Currency Brian Brooks recently revealed the era of crypto banks is just around the corner
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The U.S Controller of the Currency, Brian Brooks, recently stated that the era of crypto banks is just around the corner.
In a report credited to Forbes , the head of the Office of the Comptroller of the Currency (OCC) disclosed that there were a number of crypto firms applying for the Trust Charter with the OCC, in order to provide crypto banking services.
Brooks, an alumnus of the world’s most valuable crypto exchange, Coinbase, has historically been open towards the opening of the world’s largest economy via cryptos and blockchain technologies.He spoke on the necessity of having such innovative institutions.
“The point is, it is important both for entrepreneurs who are trying to grow their companies and for customers who don’t want to be deprived of access of something to get across a state line that we have a single national platform and that’s what federal banking regulation is all about and by extension, if we have crypto banks, which I think we will very shortly, I think it is in their interest they will have to comply with one set of rules nationwide, that’s the way markets grow.”
What you should know
It’s key to note that under his watch, the first crypto bank, Kraken, began offering the world’s largest economy, crypto banking services.
What this means
Recall that a few days ago, Nairametrics broke the news on how Brian Brooks gave key insights on the significance of cryptos in the lives of Americans and its future as regards banking, in front of the U.S Congress.
As part of his testimony, Brooks, during a hearing recently held with the Senate Committee on Banking, Housing, and Urban Affairs, provided key points on the efforts that the U.S regulator is taking to keep the federal banking system competitive amid the COVID-19 pandemic and the role cryptos play.
The report said, “Today, roughly 60 million Americans own some type of cryptocurrency, with a total market cap of nearly $430 billion.These figures clearly illustrate that this payment mechanism is now firmly entrenched in the financial mainstream.” Olumide Adesina
Olumide Adesina is a France-born Nigerian.He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading.
Featured Financial Market Analysis for a Fortune Global 500 Company.Member of the Chartered Financial Analyst Society.Follow Olumide on Twitter @tokunboadesina or email [email protected] Click to comment Your email address will not be published.Comment Cryptocurrency How Crypto can curb Nigeria’s high unemployment rate
Cryptos, when fully adopted, will have a considerable impact on Nigeria, by increasing the financial inclusion of individuals and companies.
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Nigeria, the largest economy in Africa, has been unable to efficiently tackle its increasing unemployment rate – a ticking time bomb, if not addressed quickly.
In 2020, the frontier market witnessed a rise in its unemployment rate, due to an ever-growing dependent population, reduction in the total output of goods and services, and the unprecedented COVID-19 pandemic, which negatively impacted the economy and led to job loss for thousands of Nigerians.
READ: CBN to drive implementation of zero balance account opening in banks
Data from the National Bureau of Statistics (NBS) revealed that: Nigeria’s unemployment rate as at 2020 Q2 reached 27.1% — indicating that about 21,764,614 (21.7 million) Nigerians are unemployed.Also, 13.9 million Nigerian youths are unemployed.Youths between 15-24 years constituted the highest unemployment rate, 40.8%; followed by youths between 25 – 34 years, 30.7%.
READ: How young Nigerians are investing to leave the country
Such unimpressive economic data can be curbed, if Nigerian regulators and stakeholders tap into the potentials inherent in cryptos, to further strengthen the development of Africa’s largest economy.
Cryptocurrencies can help tackle the numerous challenges faced in international trade by many Nigerians, who don’t have a bank account.With the help of blockchain technology, many unemployed Nigerians can utilize the tools behind crypto and blockchain to generate income, as traditional jobs steadily become outdated.
READ: Nigerian fintech companies raised $600 million in five years – McKinsey Report
Cryptocurrencies like Bitcoin could also help the unemployed facilitate small-scale international trade.Bitcoin enables these parties to sell products in exchange for Bitcoin and a boycott of traditional e-commerce systems, which often involves having to set up a merchant account with traditional banks, coupled with its attendant charges.
Cryptos, when fully adopted, will have a considerable impact on Nigeria, by increasing financial inclusion of individuals and companies.Particularly, by reducing the transaction fees and time, cross-border payments can be improved.
This is beneficial for remittance payments, peer-to-peer lending, and international trade.
READ: South South States lead in Nigerian unemployment
Experts discuss the utilization of cryptos to curb unemployment
In an exclusive interview with Nairametrics, Chike Okonkwo , Business Development Manager, OKEx, spoke on the role crypto can play in providing income for a substantial number of young Nigerians.
“Since the adoption of cryptocurrency in Africa, Nigeria has become a major hot zone in the African cryptocurrency space.The adoption of blockchain/cryptocurrency by Nigerians, has been able to give jobs to young Nigerians like me.
READ: Nigeria records lowest remittances from abroad since 2008
“The industry will further curb unemployment in Nigeria, but to achieve this — Blockchain and Crypto education must be a key focus because it’s a young industry.
I personally encourage a lot of young people looking for a career path to explore the blockchain and crypto space.
“We need people who understand business development, media, marketing, programming, Crypto trading, legal Compliance, design/graphics, etc.in the industry.
“Young Nigerians have built trusted platforms for buying and selling of cryptos and there is more to come.I am a member of Stakeholders in Blockchain Association (SiBAN), which aims to unite/self-regulate players in the industry and Blockchain Nigeria User Group (BNUG), with core focus on educating people about the Industry.”
Charles Okaformbah , Blockchain Solutions Architect, in a note to Nairametrics, gave key insights on the job opportunities that crypto can offer Nigeria’s growing population.
“Aside the trading activities carried out by Nigerians, DeFi products can be created with cryptos to help create businesses that will employ more Nigerians.
“Trading with little funds might not really yield much in comparison with the inflated cost of living, but long-term investments on solid crypto-assets have proven to be a game-changer or yielded much more returns.
“Remittances can also be done with cryptos at a charge for international traders, who are currently limited by government’s monetary policies.
“There is also crypto-collateral.Aside crypto as an end-product, employment can also be provided via tech for tech enthusiasts/geeks, by creating their services like crypto/blockchain solutions for organizations, developing crypto-related products, providing audit for smart contracts, crypto forensic auditing, project management, and a whole lot more.”
Bottom Line
Digital currencies or cryptocurrencies as a standalone will not make an all-encompassing impact on the Nigerian unemployment index.However, Nigeria must start building native Blockchain Infrastructures post-pandemic.
This way, the core sovereignty of the technology will originate and mutate in meeting our unique Nigerian market niche.The domino effect across the skilled, entrepreneurial and regular professional layers would be massive.
The improvement of financial inclusion is the most significant and most developed benefit of crypto-currencies for Nigerians.Cryptocurrency Newly created accounts for Bitcoin hit highest level since January 2018
Glassnode revealed that they observed the highest number of newly-created addresses in the Bitcoin network since January 2018.
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