World’s Second-biggest Bank is Bitcoin’s New Fan

November 18, 2020

KaylaTurner
32
Bitcoin is marching ahead like never before. In 2020 the popularity of Bitcoin is skyrocketing. Large institutions from around the world are embracing Bitcoin. The world’s first Cryptocurrency has emerged as an alternative avenue for investment. The new member of the crypto club is China Construction Bank (CCB).
 
It’s not that, price-wise Bitcoin is at the highest point now. It had reached the highest point in late 2017 when the price was around $20,000. The bitcoin price has been swinging since its origin. By April 2020, the average figure for the Bitcoin price was $7,000. We have to recall that the price of Bitcoin was only a few dollars after getting launched in 2009.
 
In 2020 the price is booming in recent months and expected to reach the $20,000 mark very soon. This year we are also witnessing the entry of big businesses into the crypto market.

Large Corporate Jumping Crypto Market

Before discussing the CCB’s entry into the crypto market, let us look at the past developments. Many noted corporates from across the globe are embracing bitcoin. Toyota Systems has partnered with DeCurret, to start a Toyota virtual currency. The Robinhood trading app and Square are already into the Bitcoin domain.

Large Banks are Eying Crypto

Big financial institutions from around the world are now eyeing the crypto market. They are into an experiment with Bitcoin and invest in it. We may recall the recent entry of DBS Bank of Singapore. DBS is planning to launch a Cryptocurrency exchange.
 
The Bank of America is already investing a lion’s share in Crypto and Blockchain. Citigroup is experimenting with the technology to manage credit default exchange. Switzerland’s number one bank UBS has been at the forefront in endorsing Blockchain. In 2016 the Bank of England started to get into the crypto world. They had launched a crypto accelerator. They have a plan to launch the Bank of England Crypto Coin as well.
 
PayPal along with its partner Paxos Trust Company has jumped into the crypto market. A large number of PayPal users would be able to buy, sell, and exchange Cryptocurrencies.
 
Another huge bank from Europe, BBVA has invested in Cryptocurrency. The Spanish financial institution is planning to use Blockchain technology. Visa teamed up with Ternio is all set to help Cryptocurrency companies. UK-based banking platform Cashaa and The United Multistate Credit Co. Operative Society of India are also entering the crypto domain.

The entry of China Construction Bank

China Construction Bank (CCB) is planning to raise $3 billion using Blockchain technology. CCB has join forces with Fusang in this regard. CCB has created an SPV (special purpose vehicle). The aim is to issue the “Longbond.” Crypto enthusiast’s investors can buy virtual tokens on the said exchange. To buy digital tokens investors can use Bitcoin or dollars. To attract more investors CCBis allowing investment of small amounts like $100. CCB is ensuring that tokens get backing from its deposits at a branch in Labuan. According to Fusang, Blockchain technology will be the backbone of the ownership records.

Bottom-line

It is yet another page of success in the Bitcoin popularity book. CCB’s entry would amplify the acceptance of Bitcoin by top businesses as well as small investors. Many more banks and other institutions are going to join the crypto world.
Kayla Turner
Kayla Turner

Kayla is an adept article writer with vast hands-on experience in cryptocurrency and technology. She is outgoing and always looking for new challenges to conquer. Over the years, she has gain massive traction online for writing stellar content on cryptocurrency and blockchain technology in a crispy and easy to understand style. When she is not writing for the web, she loves spending quality time with friends, colleagues, and her family indoors and outdoors. Be sure to check out his profile online for more invigorating articles.

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