The history of cryptocurrency as we know it today started in 2009 with the invention of Bitcoin. An anonymous developer (or group of developers) named Satoshi Nakamoto created the Bitcoin protocol in 2009 as a result of people’s distrust in banks due to the economic crash in 2008. To this day, no one knows Satoshi’s true identity. Prior to 2017, Bitcoin was largely the only known cryptocurrency. Today, there are thousands of cryptocurrencies, and they are becoming significantly more popular as investment vehicles, technology platforms, payment methods, and centralized digital currencies.
The regulatory status of cryptocurrency is complicated. In the United States, cryptocurrency exchanges (Coinbase, Kraken, etc.) are required to be registered as money service businesses and have strong AML programs. This is a hot topic conversation among banks, federal banking agencies, and technology firms around the country.
While the future of cryptocurrency’s regulatory status is largely unknown, the fact is the technology behind cryptocurrency and the blockchain will inevitably change the way payments are processed forever. The global market cap for cryptocurrency is 1.73 trillion dollars as of 3/8/2022.
Lead Bank does not currently service the cryptocurrency industry. This may change in the future as regulations around cryptocurrency evolve.
What is Cryptocurrency?
Cryptocurrency is a digital medium of exchange using strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. It is decentralized digital currency, based on blockchain technology.
What is the difference between Blockchain and Cryptocurrency?
Cryptocurrency is a form of decentralized money. Blockchain is the technology ledger used to record cryptocurrency transactions.