Bank of South Korea will launch its own Bitcoin portfolio

Local media claim that Shinhan Bank, the second largest bank in South Korea, is already working on a functional product that will be designed for public release. It will allow customers to store Bitcoin in a wallet, Shinhan would thus become the first major bank to offer direct Bitcoin storage services. They started working on the new service at the beginning of this year 2017, and the project will be launched soon.

Many bitcoiners prefer to have their private keys without intermediaries or third parties, but not all are of the same opinion, we are talking about the security of a traditional bank merged with the new economy of cryptocurrencies.

The bank made the corporate decision to launch a bitcoin vault and wallet platform in response to recent attacks on cryptocurrency exchanges. As happened with Bithumb, in June, the largest cryptocurrency exchange in the world by trading volume, suffered an attack that affected about 30,000 users, which caused large losses, the bank had to reimburse $ 1 million and provide another $ 1 million to those 30,000 users for compensation after the attack.

A representative of Shinhan commented:

Shinhan is testing a virtual platform for Bitcoin in which the private keys of the Bitcoin addresses and wallets are managed and issued by the bank. The bank intends to provide the service free of charge and charge a fee for withdrawals.

Shinhan Bank will initially offer the service with no commission on deposits and storage, simply a small fee will be applied on withdrawals. The bank is already configuring the test server to demonstrate and have an idea of how the service should work before implementing the full version. Fully accessible through a mobile app that will have a statistical dashboard and relevant information.

In addition to the wallet, the bank will also develop a complete infrastructure for the Bitcoin ecosystem, which will include mobile applications, statistics, and analysis.

Meanwhile, the Korean government continues to issue warnings about the dangers of cryptocurrencies, more specifically, of course, of the initial offers, the ICOs.

The cryptocurrencies appeared and until recently continued in the crosshairs of banks and large traditional investors, but it seems that adoption is the best way and is something that these institutions have already learned. It is paradoxical thinking about the nature of cryptocurrencies but it is something that we all knew would end up happening, who knows if in a few years through our control panel of our bank we can buy cryptocurrencies. Although perhaps, as I said, the essence of cryptocurrencies is lost, decentralization, that’s why this project will have many detractors.