Thread by @BigWhiskey_10

#telfam After further research, I can clarify & expound upon a few things. Read on:

$TEL #telcoin

https://twitter.com/BigWhiskey_10/status/1588681662405414914

2) It seems the Federal approval that @telcoin is seeking is not from the FDIC. In fact, they might not have any interest in that at all (yet), as I had thought.

$TEL #telcoin

3) That much was stated plainly by @telcoin's attorney (Mark) during a Nebraska hearing all the way back on Feb 23, 2021. Here’s the transcript from that hearing. It's fascinating to hear Mark and Paul (CEO) talk about all of this: nebraskalegislature.gov/FloorDocs/107/…

$TEL #telcoin

4) The Fed approval they want is from the Federal Reserve to gain access to Federal Payment Rails, which was talked about during that hearing and (as others have seen) was on a slide in Rajesh’s presentation (see 30:57)

$TEL #telcoin

5) Getting approval to use the Fed Payment Rails would put them on equal footing with traditional banks and grant them direct access to the Federal Reserve’s international payment systems...

$TEL #telcoin

6) and eventually ‘FedNow’, the Fed’s Real-Time Payment (RTP) system, launching some time between May-July next year
federalreserve.gov/paymentsystems…

$TEL #telcoin

7) Without that approval, they have to go through an intermediary bank, which partially explains why @telcoin needed to partner with one.

$TEL #telcoin

8) It also potentially gives some clue as to why, for a short time, they had instant USD deposit on the app and have since downgraded to ACH rails (3-5 day bank transfers).

$TEL #telcoin

9) I’d speculate that maybe it was too costly to do permanently through the intermediary and/or maybe they were just testing the app for when they would eventually get access to Fed Rails.

$TEL #telcoin

10) What’s clear is they are setting up a ‘multi-rail’ system consisting of US Fed Rails + equivalent rails in other target markets + the blockchain, wherein they can offer instant on/off ramps in the countries they operate and nearly-instant transactions on @0xPolygon

$TEL

11) So with that said, the race to be the ‘First Crypto Bank Approved by the Fed’ is still very much in play. And it was only this past August that the Fed provided FINAL guidance on what would be required for crypto banks to gain access. coindesk.com/policy/2022/08…

$TEL

12) Kraken Bank and Custodia Bank submitted their Fed Rail applications long before @telcoin, having received digital asset bank charters in Wyoming before anything was passed in Nebraska. coindesk.com/business/2020/…

$TEL #telcoin

13) Both banks have both been at the forefront of a 2-year battle with the Fed (and big banks) around the guidelines. Custodia even filed a lawsuit against the Fed: protos.com/pro-crypto-cus…

$TEL #telcoin

14) HOWEVER, because of the uphill climb they’ve faced, they still haven’t been approved so we could speculate that they don’t necessarily have any advantage over @telcoin at this point.

$TEL #telcoin

15) Regardless, we could also speculate that, if there are multiple applications with the Fed that all meet the guidelines, they may just approve them all at once.

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16) So the headline could be more like “Fed approves Kraken, Custodia, and @telcoin as the first Crypto Banks’

$TEL #telcoin

17) Even in that scenario, sky is the limit for @telcoin token price, MNO partners, app users, liquidity pools, tier 1 exchange listings, you name it. Boom time.

$TEL #telcoin

18) IMO, with enough press, it could be the single biggest event in @telcoin history and put them on the map with Crypto’s biggest players.

$TEL #telcoin

19) And having read more about the back and forth with the Fed about the guidelines, I have a little more optimism that we could see approvals come this year, as Rajesh had stated.

$TEL #telcoin

20) Assuming it would be the Board of Governors at the Federal Reserve that ultimately grant the approvals, the dates for #telfam to watch are on the Fed's calendar
federalreserve.gov/newsevents/cal…

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21) This is literally "the center of regulated banking and digital assets" as Paul put it.

$TEL #telcoin

22) Again, while a lot of this can be ascertained from public information, I’m speculating to fill in the blanks. You could fill a boat with everything I don't know. Look for yourself and decide.

$TEL #telcoin