Cryptocurrencies have the innovative potential to allow people access to a global payment system in which participation is barred only by access to technology. It could replace traditional standards based on having a bank account or a credit history.
However, buying and selling crypto coins and using digital currency to pay for products in the physical world is not the same as opening a bank account and depositing a paycheck. An announcement by Coinbase may have dislodged the elephant in the crypto storage room.
Coinbase is an app that lets people buy and sell various cryptocurrencies — Bitcoin, Ethereum, Litecoin, and many others — and lets users convert one cryptocurrency to another. Users can also send and receive cryptocurrency to and from other people.
In its 10-Q filing last month Coinbase disclosed that it would have the right to hold crypto assets of its retail users as property of the bankruptcy estate, if the company were to file for bankruptcy.
So, what about crypto providers and digital storage centers that hold your crypto funds?
That disclosure is driving awareness and highlighting the importance of self-custody, according to Adam Lowe, chief innovation officer of CompoSecure and creator of Arculus.
“As cryptocurrency is becoming more mainstream, many people are jumping in feet first and not properly researching and educating themselves. It’s important users know how their cryptocurrency works, who owns it, and what control they have with their digital assets,” Lowe told the E-Commerce Times.
Read the full article: Cryptocurrency Custody Concerns: Who Holds the Digital Storage Keys?
