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Barclays speaks of cryptocurrencies into bank system

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Tinuku ~ Banking giant Barclays has talked with regulators and fintech to bring bitcoin into the system. Financial technology and blockchain force anyone to step into the future and Barclays on Monday said that talks with Britain's Financial Conduct Authority about using cryptocurrencies are not ready for prime time, but will get there soon.

Tinuku Barclays speaks of cryptocurrencies into bank system

CEO of Barclays Personal and Corporate Banking, Ashok Vaswani, said the company has met with the UK's Financial Conduct Authority (FCA) supervisor to talk about bitcoin in response to questions about whether Barclays can support bitcoin.

"We've been talking to some fintech and actually went to the FCA to talk about how we can bring cryptocurrencies.Obviously this is a new area, we're careful, we're trying to get through it," Vaswani told a fintech conference in Copenhagen, Denmark.

Barclays has recently been involved in digital currency. Last year the bank partnered with social payment applications Circle is a licensed startup from the FCA that serves sending money and supporting bitcoins. Barclays accommodates Circle to store sterling and transfer money.

Conventional banks are usually very careful with bitcoin user companies because of the anonymous reputation that is often called the "dark web". But cryptocurrencies with market share continue to grow and encourage investor and retail interest to use them.

Ultimately it will force the regulator to adopt the digital currency. Japan and South Korea make laws for merchants to start receiving crypto currency payments, while Russia is also looking for ways to pass regulations.

"We do not forbid companies to trade using digital currencies, nor do they forbid banks to offer banking services to deal with companies that use blockchain," said Chris Woolard, executive director of FCA's strategy.

"I'm not saying that we see digital currency as an inherently bad thing, but we have to do a little bit of vigilance, and there needs to be attention from institutions that handle bitcoin," Woolard said.

A number of other banks have tested different uses for blockchain technology. Last year, Barclays conducted trials of derivative trading using blockchain. However, they say this is very early and there is still a lot of work that needs to be done to integrate it in the everyday bank system.

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