On July 22, 2020, the Office of the Comptroller of the Currency (OCC) released Interpretative Letter #1170. This letter was written in response to an unnamed national bank that requested authority to provide cryptocurrency custody services for its customers. The OCC began its analysis by noting that banks have long provided many types of custodial services for its customers. The classic example is the safe deposit box in which valuable documents, coins and jewelry are commonly stored.

As many already know, because virtual currencies are encrypted and built upon a decentralized blockchain platform, an owner may only realize the assets value by also possessing an alphanumeric passcode or key. If the key is stolen or misplaced, cryptocurrency becomes worthless to the owner, and these keys are essentially irreplaceable. Banks reputations for safety and soundness, in addition to pervasive regulations governing operations, make them a logical custodian to hold a customers keys to the customers cryptocurrency assets. Providing custody services for cryptocurrency falls within these long-standing authorities to engage in safekeeping and custody activities.

Under this Interpretive Letter, national banks are permitted to provide both non-fiduciary and fiduciary custodial possession of cryptocurrency. To understand this distinction, recognize that the OCC expects that in most cases a financial institution will possess the cryptographic access key associated with a unit of cryptocurrency, but typically will not take custody of the cryptocurrency itself. To the extent that a national bank, with trust powers, takes custody of cryptocurrency in a fiduciary capacity, the bank must operate in compliance with controlling federal regulations, applicable state laws and all other applicable law and contract documents. A national bank holding cryptocurrency in a fiduciary capacity, for example, as a trustee or an administrator of an estate, has the authority to manage those cryptocurrency assets, just as they would any other asset held by a fiduciary. This opinion clarifies that banks can continue satisfying their customers needs for safeguarding their most valuable assets, which today for tens of millions of American include cryptocurrency.

The OCC cautions its jurisdictional financial institutions, i.e., nationally chartered banks and federal savings associations, who wish to engage in these described activities to proceed consistent with sound risk management practices and align them with the banks overall business plans and strategies pursuant to the OCCs guidance. See e.g., OCC Bulletin, 2017-43 New, Modified or Expanded Bank Products and Services: Risk Management Principles. Bankers understand the burdens this OCC directive imposes. This will mean the creation and implementation of policies governing internal control and management information systems which meet the OCCs requirements. It further means that the on-boarding and supervision of these customer relationships must comply the Bank Secrecy Act and all other laws and regulations relating to the institutions safety and soundness. The OCC expresses its intention to be rigorous in examining those banks that choose to begin offering these new crypto custody services. Given all the risks and rewards for expanding in this area, the OCC closes its Interpretive Letter with the direction that [a] national bank should consult with OCCs supervisors as appropriate prior to engaging in cryptocurrency custody activities. In all candor, however, the fact that financial institutions are required to comply with pervasive safety and soundness regulations is one of the positive attributes greatly appreciated by the consuming public, whether the entrusted asset is money, valuable jewelry or now, cryptocurrency custody services.

What may be most interesting is how this Interpretive Letter suggests even more. This letter also reaffirms the OCCs position that national banks may provide permissible banking services to any lawful business they choose, including cryptocurrency business, so long as they effectively manage the risk and comply with applicable law (emphasis added). The Interpretive Letter is revealing of the OCCs growing comfort with virtual currencies and a welcoming attitude to technological innovation in general. The OCC recognizes that, as financial markets become increasing technological, there will likely be increasing need for banks and other service providers to leverage new technology and innovative ways to provide traditional services on behalf of customers. By providing such services, banks can continue to fulfill the financial intermediation function they have historically played in providing payment, loan and deposit services. A blog article is not necessary to inform cryptocurrency businesses that banks have historically been closed to them. If this letter cracks the door open only a little bit, such that more banks will explore serving this important industry, so much the better.

All interpretive letters, including Interpretive Letter #1170, lack the force of law or regulation. In this case, Jonathan Gould, the OCCs senior deputy comptroller and chief counsel, who authored Interpretive Letter #1170, best is offering only a road map and a sense of the OCCs expectations in this banking function.

Some have expressed concern that cryptocurrencys pride in the libertarian mantra of existing in a world without rules could limit its vast potential. Many users consumers, businesses and intermediaries simply are not comfortable with the resulting risks. And it is fascinating that a technology built upon immutable and secure blockchain technology is the subject of too many news stories about fraud, hacks and losses. On the other hand, banks are seldom accused of moving too quickly towards the cutting edge of technology. Their reputation is that of being staid, but always safe. The intertwining of transformative cryptocurrency with the nations traditional financial infrastructure offers great benefits for both industries and greater promise for the country as a whole. And, of course, it will be interesting to watch as this occurs, as it simply must.

Continued here:
Is the Crypto Camel's Nose Under the Banker's Tent With the OCC's Interpretative Letter of July 22nd? - Lexology

Cryptocurrency has taken the global economy by surprise, with analysts suggesting that there are more to come.

(Newswire.net -- July 27, 2020) -- If you would ask anyone who was mature in the 1980s about Bitcoin or any other cryptocurrency, the question would be taken as an insult. Nobody knew that this digital form of currency would be the talk of the town. Everywhere including social media, is now full of this new trend of trading. Cryptocurrency has taken the global economy by surprise, with analysts suggesting that there are more to come. This is a form of decentralized digital trading where the transactions are done on the internet. The government and the center have no power to control transactions since the exchange of crypto assets is done on private grounds.

Nowadays, investors need only a digital wallet, and the buying and selling of crypto assets is facilitated in the comfort of their homes. You can also give it a try with help from Instant Loan and all the basics provided.

However, with the increasing speed of cryptocurrency, various groups of economists say that the introduction of crypto assets to the economy has adversely affected the regular business.

Despite its being related to the significant transformation of traditional modes of transaction, the big economies suggest that the new digital era is a threat to their dominance. Our focus today is on how cryptocurrency has disrupted the global economy with this short period of introduction.

If you wonder how cryptocurrency challenges the US Dollar, then it's worth noting that the US Dollar is the global economy's reserve currency. This is to say that the United States dominates the global economy and political affairs. Before the introduction of cryptocurrencies, every single global transaction was done in US Dollars. With this dominance in the economy, any upheavals in the US financial market would lead to economic tension worldwide. A living example is the 2008 financial crisis that almost brought the global economy to a standstill.

Another example is countries like Russia and Venezuela, who have considered creating their state-owned cryptocurrencies. This move was initiated due to the US front lining for the economic sanctions in two countries. The Venezuelan president has already launched an oil-backed cryptocurrency.

The introduction of cryptocurrencies has come at the right time when there have been attempts to de-dollarize the global economy. De-dollarize means changing the US Dollar's dominance and giving other currencies a place in the global economy. With cryptocurrencies such as Bitcoin in the economy, the decentralization of transactions does not have any links to the US Dollar. This has adversely changed the modes of international trade, diplomacy, foreign relations, and reduced economic sanctions. US Dollar, therefore, is slowly losing its popularity as many countries have decided to create their crypto assets.

Intermediaries have been playing a significant role in every transaction, whether international or local trading. An example of an international intermediary is Society for Worldwide Interbank Financial Telecommunication (SWIFT). This organization provides a network for financial entities worldwide to transmit information in a safer and secure mode. This means that no financial transaction can take place outside the SWIFT network. The SWIFT network is responsible for money laundering, checking on terrorists, and illicit trade in drug and ammunition.

Cryptocurrency trading cuts out any form of intermediaries where the buyer and seller only transact directly. There have been numerous advantages associated with the cutting of go-betweens, including; no need for authorizing and authenticating transactions, minimal transaction fees, the transactions are secure with end-end privacy, and the trading is done within minutes. However, a coin has two sides. Having numerous advantages does not mean crypto trading lacks demerits. The elimination of mediators in the economy puts the global economy at the risk of money laundering and other illegal transactions since there is no watchdog to monitor and ascertain participants' identity. The tension was confirmed by Christine Lagarde, the head of IMF, who warned that cryptocurrencies are likely to disrupt the Central Banking System.

Crowdfunding is merely gathering money to start up a business. The idea has been used globally by entrepreneurs to start and build their businesses. Before the birth of crypto assets, entrepreneurs would convince big ventures, banks, and capitalists to fund their business. This was a profitable idea to banks such the World Bank in that they put their equities in small businesses to start. With cryptocurrencies, there has been the introduction of simple methods such as Initial Coin Offerings (ICOs) in 2017. This new method has simplified the crowdfunding process in that the new entrepreneurs need a shorter time to raise capital for their businesses. In this era, the conception of a tangible idea is tokenized and sold to the public.

However, large economies are opposed to introducing ICOs such as China, which ICOs in late 2017. These economies believe that ICOs are a threat because it denies them the commission and interests related to funding new ventures. Some countries have also placed strict restrictions on ICOs.

The new digital era has introduced a new era of payment to the global economy. Its no longer an era where cash payments were the primary form of payments. It only takes one to deposit a Bitcoin, Litecoin, or Ethereum into someones digital wallet for the service and product offered. How does that affect the economy? In a traditional means of payments, financial institutions such as banks could monitor the amount deposited into the accounts and deduct transaction fees. They also had the opportunity to deduct taxes, which was used to boost the economy. With the new payment mode, banks and other institutions do not have direct control of the payments. This limits the amount of taxes collected to finance the economy.

Many investors and countries welcomed the idea of cryptocurrency positively. Cryptocurrency trading is a significant replacement to the traditional mode of transactions, and the users have direct control over their wallets. However, any innovation comes with its negativities. Despite cryptocurrency having merits on individual investment, it has adversely affected the global economy, and there are still more to come. US dominance in the global economy is at the fear of being replaced. But as it is said, we live to see what will happen.

Link:
How Cryptocurrency Is Disrupting the Global Economy - Newswire

The live-streaming service Twitch is now offering a 10% subscription discount for people who register with cryptocurrency. The new offer from Twitch leverages the Bitpay payment processor, as this is the first crypto-based discount promotion from a company of this magnitude.

This week, the live-streaming service Twitch revealed it is offering a 10% discount for subscribers who pay for subscriptions with a cryptocurrency. Twitch is a service that allows live streaming and it was introduced in 2011.

The platform is most popular among live-streaming gamers, and in 2017 it outpaced the streaming service Youtube Gaming. Twitch has over 27,000 partner channels, 15 million daily active users, and 2.2 million broadcasters monthly.

In order to allow people to leverage cryptocurrencies for a 10% discount on services, Twitch, a subsidiary of Amazon, is utilizing Bitpays crypto processing system to accept payments.

The Atlanta-based company Bitpay allows payments in bitcoin (BTC), bitcoin cash (BCH), ethereum (ETH), four USD-pegged stablecoins (GUSD, USDC, PAX, and BUSD), and ripple (XRP). Being a Twitch subscriber, users have exclusive access to emotes, badges, and the ability to follow their favorite streamers regularly.

According to Bill Zielke, Bitpays chief marketing officer Twitch is the first major merchant to jump on this trend. Twitch is not the only gaming website and live streaming service that offers cryptocurrency support.

A number of gaming firms like Take Two (Disintegration and Outer World) and Microsoft support cryptocurrency payments. In order to get the 10% discount individuals interested in registering for a Twitch subscription simply select pay with Bitpay at checkout in order to pay with a digital asset.

Bitpay explained that it is thrilling to see a trendsetting firm like Twitch accept cryptocurrencies. The Atlanta firm believes that the gaming industry specifically goes hand and hand with crypto asset support. Just recently Bitpay published a blog post that shows online gaming operators attract players using Bitpay for instant bitcoin deposits.

The company notes that crypto acceptance adds potential to expand a user base, it lowers costs, eliminates chargebacks, offers speed, and is borderless, as bitcoin (BTC) and other crypto assets can be sent anywhere in the world in minutes, the company highlights.

What do you think about Twitch offering a 10% discount for people who pay with crypto? Let us know what you think in the comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Bitpay

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Live-Streaming Service Twitch Gives Subscribers 10% Discount if They Pay With Cryptocurrency - Bitcoin News

On July 22, 2020, the Office of the Comptroller of the Currency (OCC) published an Interpretive Letter (the Letter) declaring that national banks and federal savings associations (collectively, national banks) may provide cryptocurrency-related custody and other services.[1] The announcement marks a revolutionary moment for the cryptocurrency industry where, until now, custody has been provided by crypto-specialist firms, typically under a state trust license.

In the Letter the OCC notes that, although providing custody for cryptocurrencies differs in several respects from other custody activities[2], such services are a modern form of traditional bank activities. As an example, there is no physical possession of cryptocurrencies. Instead, a national bank holding cryptocurrencies on behalf of a customer is actually taking possession of the cryptographic access keys to that unit of cryptocurrency, that is, private keys. According to the OCC, by providing these services, banks can continue to fulfill the financial intermediation function they have historically played.

Moreover, national banks crypto custody services may extend beyond passively holding private keys. As expressed by the OCC, the custody function is a gateway to providing a whole host of other cryptocurrency services that are appropriate for custody customers. National banks may also facilitate customers cryptocurrency and fiat currency exchange transactions, transaction settlement, trade execution, recording keeping, valuation, tax services, and reporting. Basically, national banks may become full service cryptobanking providers. We note, however, that the Letter does not authorize national banks to open FDIC-insured deposit accounts denominated in cryptocurrencies.

The OCC cautions national banks that comprehensive control systems need to be in place to manage risks of this business. In addition, as part of its ordinary supervisory process, any national bank looking into conducting cryptocurrency custody services should consult with the OCC supervisors.

Furthermore, it should be noted that additional requirements may apply depending on the nature of the cryptocurrency being custodied. As the Letter notes, different cryptocurrencies may also be subject to different OCC regulations and guidance outside of the custody context, as well as non-OCC regulations. For example, cryptocurrencies that are considered securities for purposes of federal securities laws may be subject to the OCCs regulations on recordkeeping and confirmation requirements for securities transactions, as well as securities laws and regulatory requirements overseen by the SEC and FINRA.

Importantly, the OCC is authorizing these services within the existing authorities that national banks possess. There is no new regulation or guideline or other new law that needs to be put into place before this authority can be relied upon.

The Party is Just Getting Started Whos invited?

National banks now need to decide how to enter this new line of business. The OCC notes that depending on their risk appetite and business model, national banks may offer to store copies of their customers private keys while permitting the customer to retain their own copy, while others may generate new private keys which would be held solely by the institution on behalf of the customer. National banks may provide these services in non-fiduciary capacity, meaning merely holding a customers private key and related records, or in a fiduciary capacity, such as an investment advisor, a trustee, an executor of a will, or any similar capacity in which the bank possesses investment discretion on behalf of the customer. Due to the undeveloped financial infrastructure presently available for cryptocurrency, custodying in a fiduciary capacity presents both major business opportunities for national banks as well as compliance and technology challenges.

In the past, money center banks have been cautious in dealing with cryptocurrency counterparties, in part due to the perception that the regulators held a skeptical view of the industry and would, at exam time, be tougher on such relationships. The OCC has tried to head this view off by specifically stating in the Letter that that national banks can work within any lawful business and that cryptocurrency custody actives constitute such a lawful business. We believe that this shift in a key regulators tone can have consequences also in other financial institutions who may now take a more positive attitude towards cryptocurrencies.

What about state-chartered banks? Because many state laws, New York included, have so-called wildcard statutes that permit state banks to conduct all the same activities as national banks, the Letter has broader application than just national banks. Nonetheless, the prudential conditions stated in the Letter demonstrate that banks will need to devote a serious effort to perform these services.

We expect that those few banks already servicing the cryptocurrency business will quickly move to take full advantage and expand their services. Larger banks with existing robust institutional custody businesses are likely to follow suit.

The Letter provides opportunities also for many foreign banks that have branches in the U.S. While most branches do not have trust powers, the OCC letter allows for non-trust related use of this express authority with respect to nonfiduciary custody services.

One of the roadblocks in the security token market has been the lack of qualified custodians, such as banks and brokerdealers. Qualified custodians are important actors with respect to cryptocurrencies deemed to be securities under federal securities laws, such securities tokens, that require in certain cases the use of a qualified custodian for maintaining client funds and securities. Here again, national banks have an opportunity to play a role. We also expect that expanding the universe of qualified custodians will provide a necessary boost to the budding securities token market.

Frenemies Warming Relationship

Given that Brian Brooks, Acting Comptroller of the Currency and head of the OCC, hails from the virtual currency world, it is not a shock that the OCC would be supportive of the industry and as banks become more expert in the complexities of the cryptocurrency business we expect that this first step will presage a number of new bank and cryptocurrency opportunities.

The Letter may stand as a turning point in the notorious frenemy relationship between banks and cryptocurrency. Banks entering the industry full pelt could have two significant consequences. First, it is possible that more merchants and consumers will find a lower barrier to using cryptocurrencies in everyday transactions. Second, it may rebuff those prognosticators who have maintained that banks would be made obsolete and disintermediated by new cryptocurrency-related businesses and technologies. If you cannot beat them, join them.

We recommend that any institutions looking to take advantage of the Letter and its direct and indirect consequences carefully consider the new business opportunities available and be attentive to applicable laws, rules, and standards in this highly regulated area.

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OCC Gives Banks Keys to the Crypto Kingdom - Lexology

SAN JUAN, PUERTO RICO, July 24, 2020 (GLOBE NEWSWIRE) -- SAN JUAN, PUERTO RICO, July 24, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- BOTS, Inc. (OTC: BTZI) (EXCHANGE: M06.SG), an emerging innovator of products, technologies, and services for the rapidly growing digital robotic automation and manufacturing industry announced today that it is in the process of repurposing and renaming FIRST BITCOIN (COIN:BIT) into the Basic Income Token while retaining BIT as the digital currencys symbol.

There is a growing demand for a socialistic Universal Basic Income scheme in the United State of America heralded by former presidential candidate Andrew Yang, however, our capitalistic concept is to deliver an asset to our shareholders that produces income simply by keeping their wallets opened. The more wallets that remain open, the more secure the cryptocurrency becomes. This income will self-generate BITs 24/7 via Proof of Stake Mining (POS) protocol. Once we have hundreds of our 10s of thousands of shareholders keeping their wallets open, the blockchain becomes exceptionally secure.

Bots, Inc. and First Bitcoin Capital (OTC:BITCF) are working closely together to ensure a seamless transition of this major asset consisting of billions of BITs. Once the name of BIT is changed to Basic Income Token, Bots Inc. intends to distribute 1 BIT for each share of Bots Inc. to be held on a record date to be set for distribution as soon as August30, 2020.

This asset is only one cryptocurrency of a larger inventory of more than 100 unique digital cryptocurrencies acquired from and previously owned by First Bitcoin Capital Corp. The most significant of the transferences of these cryptocurrencies to Bots Inc., included, but was not limited to, the majority ownership of First Bitcoin (COIN:BIT), a cryptocurrency based on a unique blockchain similar to an improved version of Litecoin, This coin trades on Livecoin.net with BIT included on the premier website for tracking of cryptocurrencies via https://coinmarketcap.com/currencies/first-bitcoin/

Additionally BOTS, Inc. in conjunction with First Bitcoin Capital has generated managed units of a newly minted cryptocurrency based on Bitcoins blockchain utilizing the Omni protocols also used by Tether (COIN:USDT) in an effort to alternatively fulfill Yangs vision, defined as follows:

Universal Basic Income (COIN:UBI) commemorates the presidential candidate Andrew Yangs plan for distributing $1000 per month per citizen so that each world citizen is entitled to 1000 UBI per month upon request from Bots, Inc.

Those whom request this monthly UBI distribution will be required to cover Bots nominal Bitcoin transference costs and both Bots and First Bitcoin Capital will share in a 1% transference fee to be earned in kind. We will develop unique bots that will handle the inclusion of each requesting world- citizen wishing to use our automation in order to handle the sign ups and transfers stated newly elected Company Chairman, Simon Rubin.

The creation of UBI which is under the management of Bots Inc and First Bitcoin Capital can be witnessed here:

https://omniexplorer.info/asset/829

About First Bitcoin Capital Corp

First Bitcoin Capital Corp (OTC:BITCF) is the largest shareholder of Bots, Inc. as a result of exchanging the majority of its assets therefor, but began developing digital currencies, proprietary blockchain technologies, and the digital currency exchange - http://www.CoinQX.com (in Beta) in early 2014. We saw this step as a tremendous opportunity to create further shareholder value by leveraging management's experience in developing and managing complex blockchain technologies and in developing new types of digital assets. Being the first publicly-traded cryptocurrency and blockchain-centered company, we provide our shareholders with diversified exposure to digital cryptocurrencies and blockchain technologies.

The Company began developing its own blockchain and cryptocurrency called First Bitcoin (COIN:BIT) in 2016. Prior to transferring the majority of this asset to Bots, Inc., the Company updated the BIT wallet and added more functionality. Users are able to generate BIT through the processes of POW and POS mining. The First Bitcoin (COIN:BIT) cryptocurrency has a current supply of 20,707,629,255 BIT. It is currently trading on LIVECOIN.net with its explorer at http://www.explorer.bitcf.net.

Story continues

https://coinmarketcap.com/currencies/first-bitcoin/

Contact us via: info@firstbitcoin.io or visit http://www.firstbitcoin.io

follow us on Twitter; @1stBitCapital

follow us on Linkedin: https://www.linkedin.com/company/first-bitcoin-capital-corp/

follow us on FaceBook: https://www.facebook.com/BITCF/

About BOTS, Inc.

Headquartered in San Juan, Puerto Rico, BOTS, Inc. - publicly traded on the OTC Markets under the symbol (BTZI) and on Brse Stuttgart under ticker (M06.SG) - is a diversified company developing and servicing blockchain solutions and robotics for its clientele. The Company is committed to drive the innovations needed to shape the future of digital robotic automation management through digital technology and decentralized blockchain solutions. Management is dedicated to the strong growth of Distributed Asset Technology and Robotic Process Automation (RPA).

Bots, Inc. has been featured in media nationwide, including CNBC, Bloomberg, TheStreet.com. For more information, visit http://www.bots.bz

Visit us on Facebook @ https://www.facebook.com/Bots.Bz/

Follow us on Twitter @Bots_bz

Forward-Looking Statements

Certain statements contained in this press release may constitute "forward-looking statements." Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors as may be disclosed in company's filings. In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes. The forward-looking statements included in this press release represent the Company's views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of the press release. Such forward-looking statements are risks that are detailed in the Company's website and filings.

Contact:

Paul Rosenberg

CEO

paul@bots.bz

Read more:
BOTS, INC. TO REPURPOSE THE FIRST BITCOIN CRYPTOCURRENCY BIT AND USE IT TO PAY AN INCOME PRODUCING ASSET AS DIVIDEND TO SHAREHOLDERS - Yahoo Finance