Categories: EducationFAQ

What Is Rabobit?

Banks all over the world have shown increasing interest in cryptocurrencies as of late. Rabobank in the Netherlands is probably the most open-minded institution in this regard. Its Rabobit service will be of great interest to a lot of cryptocurrency users in the future.

A Closer Look at the Rabobit Service

As the name Rabobit somewhat suggests, Rabobank has officially entered the cryptocurrency world. Although most people knew the bank was experimenting with this new form of money, it largely remained unclear what its long-term vision entailed exactly. It seems we now have an answer, as the Dutch financial institution wants to let users store and manage their cryptocurrencies in a secure manner.

To do so, Rabobank is currently developing a service known as Rabobit. It will serve as a cryptocurrency wallet managed by the Rabobank team. For a lot of cryptocurrency users, this concept will immediately raise a lot of questions. After all, why would anyone trust a bank to store their cryptocurrency balance? Most people flock to this new form of money as a way to sever ties with their bank altogether.

Even so, Rabobank is genuinely convinced its Rabobit service will be of interest to a lot of people. The project focuses on security first and foremost, which is always a good sign. It is possible to store one’s cryptocurrency balance in a wallet hosted by this “trusted” third party. Moreover, the service can seemingly be accessed through the same online banking environment which Rabobank’s clients have grown accustomed to using.

That certainly makes things more convenient, but users will no longer be in full control of their cryptocurrency balances. The main reason why cryptocurrency matters is that users can manage their own money from any device at any given time and in any given location. When a bank becomes a custodian over one’s funds, it is evident we are taking a few steps backward.

For those users who do prefer the convenience, it seems Rabobit will check a lot of the right boxes. All of one’s funds can be accessed using their bank account and from mobile phones, tablets, and computers. Moreover, users can add their cryptocurrency balance to their banking app without requiring external solutions, which can only be considered a good thing. It does come at a steep price in terms of sacrificing one’s financial freedom, but for novice users, this may still be an option worth exploring.

The big question is when Rabobit will officially launch. As of right now, it seems the service is still in development. Rabobank has not issued any official timeline regarding this product or any specific limitations associated with its new service. It is an interesting project to keep an eye on, even though veteran cryptocurrency users will not see any merit in this offering. When banks want to hold your cryptocurrencies, things are not necessarily evolving in the right direction.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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