By Alicia Maher
In recent years, as cryptocurrencies have gained acceptance as a viable alternative to conventional payment methods, governments throughout the globe have begun to consider how they may bring the unique asset under their jurisdiction and integrate it into their operational processes.
Among them is the government of Tennessee in the United States, which has begun seeking a vendor who would be responsible for holding cryptocurrency on behalf of the state. According to an article published on the 21st of April by the Nashville Post, the state’s treasury department has published an RFP (Request for Proposals) to specify how the crypto custodian will manage the state’s digital currencies, like Bitcoin.
The Search For A Crypto Custodian
The post states that Tennessee does not currently hold any virtual currencies but is preparing itself “in case unclaimed cryptocurrencies are transferred to the government’s unclaimed asset program,” which is covered by RFP #30901 49622.
The government’s unclaimed property consists of assets totalling more than $1 billion; however, the goal of the unclaimed asset program is to restore those assets to their true owners or heirs when they are located. Any unclaimed virtual currency would have to be held by the selected custodian.
Potential Custodian Must Meet Specific Requirements
Companies must include in their applications “a story that highlights the Participant’s experience in working directly with Unclaimed-cryptos and securities” or their “knowledge of how both are special and how the Participant will fulfill them”. A full description of the infrastructure, services, and procedures that the firms will use for other forms of digital currencies, which may include but are not confined to Bitcoin, is also required.
Companies are also being asked for proposals for a price system that relies on their capacity to handle a monthly crypto trading activity of over $500,000 in cryptocurrency and 50 withdrawals or outflows of BTC from a platform each month. The chosen vendor will be announced on the 10th of May.
Furthermore, Tennessee has established itself as a trailblazer when it comes to bringing BTC to the masses. In particular, the city of Jackson is the first city in the whole nation to offer its workers the crypto as a payroll alternative, according to Finbold, who reported the development in December.
While Tennessee is showing a positive attitude towards crypto, New York on the other hand is about to pass a law that will ban the mining of PoW cryptocurrency that will affect cryptos such as BTC and ETH. Ethereum is yet to switch to the Proof-of-Stake currency.