Re:MasterCard to open up network to cryptocurrencies
by PragmaticPulp on Thursday February 11, 2021 @03:25PM
(#26106646)
In practice, companies have zero desire to be their own banks.
The liability would be massive, and the risk of a rogue employee walking away with the private keys is just too high. It's a two-edged sword: Those same upsides are just as attractive to potential embezzlers as they are to honest companies.
In an era where we hear about database breaches and security incidents on a daily basis, do you honestly believe that companies would do better by operating their own cryptocurrency wallets?
So what happens in practice? Companies would still use banking services, just like they always have. Banks would "hold" the cryptocurrency and handle transactions for them.
The liability would be massive, and the risk of a rogue employee walking away with the private keys is just too high. It's a two-edged sword: Those same upsides are just as attractive to potential embezzlers as they are to honest companies.
In an era where we hear about database breaches and security incidents on a daily basis, do you honestly believe that companies would do better by operating their own cryptocurrency wallets?
So what happens in practice? Companies would still use banking services, just like they always have. Banks would "hold" the cryptocurrency and handle transactions for them.