Nebraska, a state in the midwestern part of the United States, signed a law on May 26 to permit state-licensed banks to handle cryptocurrency, news agency AP reported.
After Wyoming, Nebraska is the second American state to do so.
The bill would make Nebraska the second state to establish a legal charter for "cryptobanks," allowing them to assist in transaction processing. According to the report, Wyoming was the first state to chart its first institution in September.
The bill aspires to make Nebraska a key location for digital asset companies and those looking to develop new financial goods and services using blockchain technology. Surprisingly, before the bill got out of committee, the banking industry collaborated closely with lawmakers.
Governor Pete Ricketts signed Legislative Bill 649, also known as the Nebraska Financial Innovation Act, in an effort to propel Nebraska to the forefront of national financial regulatory innovation.
Telcoin, a blockchain-based fintech company with global ties to the telecommunications and mobile money industries, created the law in order to deliver its own digital asset-backed financial services to US consumers in a compliant manner.
Senator Mike Flood introduced legislation that would establish a new state banking charter for digital asset depository companies. The charter is the first of its type, designed to link consumers to decentralised finance (DeFi) in a secure and regulated way.
"At its core, this new charter represents an alternative type of bank that does not have the authority to lend your money to a third party," Telcoin CEO Paul Neuner says. "Under this new charter, institutions will leverage blockchain technology to empower people to self-custody digital assets and put their money to work for themselves," he added.
Some observers lauded the idea, saying it was well-suited to discovering other worlds. Some MPs, though, questioned whether the state should embrace cryptocurrencies and said they were still unsure what the measure would entail. Others agreed with the concept but objected to portions of the law that would prevent credit unions from participating.
Dr. Demetrio Aguila III, a practising surgeon at Healing Hands of Nebraska in Norfolk, began accepting Bitcoin on May 7 to provide more payment alternatives to his patients. According to Nebraska news outlet, Aguila will transmit the funds through a platform like CoinBase.
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