The largest bank in South Korea announced its intention to offer Bitcoin custody services for its customers. This is KB Kookmin Bank (KB), which is taking the side of the new form of money.

According to information from the institution itself, exposed in a publication by Medium, the bank firm signed a contract with a company from Blockchain, Hashed and the Cumberland Korea exchange.

With this new agreement, the main company of the crypto currencies takes a new step towards its consolidation as a safe asset. It should be noted that, currently, dozens of institutional investors in the United States are buying Bitcoin in large quantities.

State bank offers custody services at Bitcoin

It should be noted that this financial institution is owned by the State of Korea. In addition, since January this year, the bank has submitted an application to the relevant authorities to operate in cryptoactives.

Under the Kbdac brand, the institution will cover a field of more than 20 areas related to cryptomonies. Bitcoin will be among these services offered by the already mentioned largest bank in South Korea.

On the other hand, within a statement published last August 7, the institution assures that they will not be limited to the use of cryptomoney. They explain that, in addition, they will evolve towards the branch of real estate and works of art. All of them will be issued and marketed through the Blockchain platform.

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Part of a competition
This step towards the new technology taken by KB is a response to the plans of the competition. Rival NH Bank announced that it would also offer custody services in crypto-currencies, which will focus on corporate services.

In this way, Bitcoin is beginning to make a strong presence among Korean banks, being among the services of these institutions. Another important fact is that some limitations that existed around the use of cryptomonies in Korea are being reformed.

According to news portals, Simon Kim, executive director of Hashed, the firm with which KB partnered, is reported to have said that this is a sign of the transformation that is taking place in the world of finance.

„The combination of our knowledge in the Cryptosoft industry and the provision of technical and commercial advice will inevitably open new doors for consumers and the country to usher in the new era of digital transformation,“ he said.

The Chinese factor in the statistical field cannot be ignored, Chinese groups account for up to 65% of Bitcoin’s total hash rate. The pandemic has had its impact on the local mining industry, forcing more than 40 production facilities to stop deliveries. The delays have had a major effect on all miners, as previous versions of the mining rigs could not be replaced with newer equipment that could have increased the hash rate and offset the halving of the reward and increased hardship requirements.

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The fall in Bitcoin’s price in May from USD 10,500 to USD 8,100 saw almost 2.3 million rigs of Antminer S9 mining shut down, this was clearly reflected in the fall in hash rates in China, where most old mining equipment was no longer profitable and sold for scrap.

It’s not all bad
Although the rapid spread of the coronavirus pandemic in early 2020 affected supply chains and halted operations of major mining equipment manufacturers, this disruption did not last long as companies in China and South Korea, home to the largest manufacturers, quickly resumed deliveries. Bitmain made from Malasi