The first bitcoin bank in the world will open its doors this summer in at least a dozen nations, U.S. included.
The bank will be launched by Robocoin, which is known more for its innovative bitcoin ATMs, in a bid to promote the use of the digital currency.
This helps partly solve the security issues that characterise the cryptocurrency, whose reputation took a hit after the collapse of Japanese bitcoin exchange Mt. Gox in February. The company, which subsequently filed for bankruptcy and liquidation, is said to have lost 850,000 bitcoins to hackers. So far, it has recovered only 200,000 bitcoins.
In the early days, bitcoin users would store and obtain access to their bitcoin by downloading a bitcoin wallet to their computers. The bank will now take up this role. According to Robocoin CEO Jordan Kelley, the bank will help ease the problems surrounding the currency such as security and complexity, reported the National Journal.
“It’s no longer about buying and selling bitcoin in their own wallet or having to store a receipt,” said Jordan Kelley, Robocoin’s CEO. “My dad, mom, sister are all terrified of that process.”
However, Kelley was quick to clarify that the bank isn’t meant to store conventional government notes, but is rather aimed at ensuring easier acceptance and use of the virtual currency.
“The bitcoin community is going to see mass adoption because of this,” Kelley said. “We’re just solving problems for everyone in the game—for bitcoin newbies, it makes it easier, and for bitcoin veterans, it makes it more useful.”
Robocoin, which is yet to decide how to earn revenues for the newly-formed bank, will also consider its worldwide network of bitcoin ATMs as its branches of the bank. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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