The Royal Bank of Canada (RBC) is exploring building a cryptocurrency trading platform for investments and in-store and online purchases, reported The Logic.
The trading platform will facilitate the buying and selling of digital currencies like Bitcoin and Ethereum and the transfer of funds combining different types of virtual currencies. The largest bank in Canada by market capitalization, RBC is also looking into allowing customers to open bank accounts containing crypto assets.
This launch would make RBC the first Canadian bank to launch a crypto exchange.
“I can’t think of one of the big banks anywhere in the world that has a patent that directly relates to a crypto exchange,” said Marc Kaufman, a lawyer from D.C.-based law firm.
Central Bank of Canada also Exploring the Launch of Digital Currency
Moreover, RBC has applied for four patents in Canada and the US concerning how it will integrate cryptos into its operations. The US patent applications filed in April discusses how the bank can take advantage of the cryptocurrencies’ growing popularity.
“As part of the innovation and discovery process, RBC, like many other organizations, files patent applications to ensure proprietary ideas and concepts are protected,” said spokesperson Jean Francois Thibault.
Meanwhile, the Bank of Canada is also exploring the launch of digital currency. Reportedly, the research has been going for the past two years to decide whether the country’s central bank should issue its own digital currency or not.
This central bank-backed digital currency would offer ‘all the benefits” of a CBDC and “all the convenience and security of wireless, electronic payments.”
“We need to innovate to stay in the game,” is the driving factor behind the creation of central bank-issued digital currency and because it has been believed crypto may become a “direct threat” to a central bank's “ability to implement the monetary policy”.