TL;DR Breakdown
• Nebraska becomes the second state to accept crypto banks.
• Senators in Nebraska have mixed opinions on the crypto bill.
Nebraska banks are getting motivated in the crypto game by letting their entities offer cryptocurrency services. State banks are also looking for ways to integrate other cryptocurrencies into the game.
The Nebraska senators made the notification last Monday, using the first of the three necessary votes in the legislature. This action would make Nebraska become the second North American state to create a legal document for crypto banks. Wyoming was the state that started this movement for people to have access to cryptocurrencies.
What are cryptocurrencies?
Cryptocurrencies are an alternative to real money but in a virtual form tracked and stored through a “Blockchain.” With this decentralized tracking network, people have guarantees on their money for secure and easy-to-verify payments. Unlike paper money, cryptocurrencies are not controlled by any government; it is open trade, attracting investors.
Crypto technology has increased in recent years, generating incredible profits for active traders. But some people suggest that cryptocurrencies are an unstable business and very risky for the economy.
Mike Flood, a Republican senator, said he showed the bill after he spoke with a friend who moved to Wyoming. Flood notes that Nebraska may become the first American state to adopt decentralized currencies on a large scale. This measure will help traders, but it will also bring a positive effect to crypto.
Financial companies like PayPal have also shown their affection towards Bitcoin or other cryptocurrencies. PayPal recently included the purchase/sale of cryptocurrencies from its platform. The law’s scheme will act in the same way; only it will be direct use of cryptocurrencies.
However, unlike the deposits you can make in cash at the bank, cryptocurrencies do not support this. Know that digital currencies are not endorsed by a federal government in North America or elsewhere globally.
Negative comments on the cryptocurrencies law project
Although the news of the adoption of cryptocurrencies at the bank level sounds interesting, some legislators disagree. Many people say this law does not make sense, and therefore, there are many doubts about its operation. Nebraska Senator Steve Erdman said this bill is not close to being approved by the state.
But Adam Morfeld, a state senator, said that although he supported this idea, he did not agree with some measures. Morfeld complained about the bill that takes credit unions out of profit. His competitor, the industrial bank, has worked with lawmakers before announcing the project to the public.
