Hello and welcome to this week's edition of Overbit Weekly Round Up.
Kicking off this week's edition, we look ahead to next month when Robinhood, one of the world's largest financial providers, will roll out "Crypto wallets" to a small group of clients - allowing investors to send, receive, and transfer Bitcoins in and out of the Robinhood app.
The decision comes as Bitcoin accounts for a growing portion of Robinhood's income, and it seems the company looks to improve upon some of its lackings.
The wallet will enable investors to trade, send, and receive digital currencies and transfer them in and out of the Robinhood app.
Some customers, notably Dogecoin traders, have turned to social media in recent months to protest that they have exposure to crypto values but not actual ownership of the coins themselves by using Robinhood as their broker.
Certain clients will begin testing the product, and Robinhood will post their input on its blog and Twitter, according to Chennapragada, who formerly led product, engineering, and design teams at Google before joining Robinhood.
Last quarter, Bitcoin trading accounted for more than half of Robinhood's transaction-based income, up from only 3% the previous year. This explains such a strong move into the cryptocurrency industry.
Robinhood claimed the crypto wallets would include various security measures like identity verification, multi-factor authentication, and email and phone verification to keep money secure from hackers.
Robinhood's stock rose 2% in premarket trading on Wednesday, as investors seem keen on the expanding crypto opportunity for Robinhood.
Closing out today's edition of Overbit Round Up, we take a look at the U.S. Federal Reserve and its own plans to expand digital currency adoption.
The Federal Reserve is moving ahead with its investigation on whether to create its own digital currency, and Chairman Jerome Powell indicated Wednesday that a report on the subject would be released soon.
Powell said that no decision has been taken on the subject and that the Fed does not feel pressured to act rapidly while other countries go forward with their own programs.
The Boston Fed has assumed the lead on the project, collaborating with MIT on whether the central bank should create its own digital coin to improve the efficiency of the payments system.
While Fed Governor Lael Brainard has been a vocal supporter of the endeavour, others have expressed reservations, including Vice Chair for Supervision Randal Quarles.
Advocates such as Brainard argue that the benefits of a central bank digital currency include getting payments to people fast in times of crisis and giving services to the unbanked.
"We think it's really important that the central bank maintain a stable currency and payments system for the public's benefit. That's one of our jobs," Brainard said.
He praised "transformational innovation" in the field of digital payments and stated that the Fed is still working on the issue, including its own FedNow system, which is set to launch in 2023. However, some fear that if the Fed does not move more forcefully, the dollar's status as the world's reserve currency may be jeopardised.
Powell mentioned the dollar's global standing and stated that the Fed is "in a good position" to decide whether or not to launch its own digital currency. He voiced concern about the regulatory environment and stated that it would almost certainly need legislative approval if the Fed chooses to proceed.
Between Robinhood and Powell's official statement on the matter, official cryptocurrency adoption continues to pile up in both the public and private sector, and we're excited to keep you updated as more and more updates come through the pipeline.
Thanks as always for reading Overbit Weekly Round Up. Take care until next time!