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Why Is Tennessee Looking for a Crypto Custody Service Provider?

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Why Is Tennessee Looking for a Crypto Custody Service Provider?

Bitcoin medals, in Washington, on June 17, 2014. (Karen Bleier/AFP via Getty Images)

Bitcoin medals, in Washington, on June 17, 2014. (Karen Bleier/AFP via Getty Images)

The Tennessee Department of Treasury is seeking vendors who can manage cryptocurrency on their behalf.

The department sent a request to proposals (RFP), in which it stated that Tennessee does not currently have cryptocurrencies, but was working on digital assets.

The department will first ensure the crypto custody service provider can provide services with 100 percent safety.

The purpose of the RFP was to “be ready in the event that unsold virtual currency is remitted into the state’s Unclaimed Property Program.” This program, which has assets in excess $1.2 billion and works to reunite the owners with the funds.

Also Read: Mayor Wants His City To Accept Bitcoin For Property Tax Payments

The treasury department has mentioned that prospective suppliers are requested to provide a price structure based on the company’s capacity to handle monthly cryptocurrency trading volumes of $500,000 and 50 Bitcoin transfers or withdrawals from an exchange account each month. According to the department, cryptocurrencies include but are not limited to Bitcoin.

Companies are also required to disclose information on the technologies they use and how they deliver their services.

In February, State Rep. Jason Powell (D–Nashville), introduced a bill that would permit Tennessee counties and cities to invest in NFTs and cryptocurrencies.

By Bibhu Pattnaik

(c) 2022 The Epoch Times. The Epoch Times is not an investment advisory. All rights reserved.

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