Can Blockchain-based Cryptobanks Overtake Centralized Competitors?
For a long time, cutting-edge technologies have comprised the flagship achievements of the centralized banking systems across the globe both economically and socially. The technology behind credit cards and online payments have driven business performance, revenue and customer ease-of-access.
Just as early industry disruptors such as PayPal revolutionized the digital commerce landscape of their time, the modern day self-labeled ‘Cryptobanks’ are challenging the offerings provided by the status quo. They are making fully integrated cryptocurrency based banking services and payments accessible to every-day users, enthusiasts and entrepreneurs alike.
We are still in a transitional period between the centralized fiat finance era and what will become of its co-evolution with decentralized e-commerce. In light of this, I wouldn’t suggest that you ditch your brick and mortar account completely just now, but that shouldn’t stop you from reading more and seriously getting involved. There is potentially a great deal to be gained from being an early adopter of disruptive decentralized currency solutions.
Contactless payments and crypto loans
From credit/debit cards to PIN and contactless technologies, advances in payment solutions have been universally lauded for their value delivery to the companies that employ them. Additionally, their ease of use benefits both customer and retailer.
A number of cryptobanks have integrated mobile payment technologies such as NFC, QR, ApplePay, and AndroidPay. They have combined these with decentralized Blockchain based banking to provide global services. These can all be controlled from anywhere using a computer or mobile app.
Additional services offered by cryptobanks include the novel proposition of token-based credit loans. These can be accessed instantly anywhere in the world (pending application) and transferred to a currency of the customer’s choice.
Unrestricted and scalable corporate banking solutions
The benefits for business owners are numerous, when used correctly. For example, you can now create a new business from scratch and use the services on offer from a cryptobank for tailored solutions that can be scaled to almost any model. This could be either online or at a brick or mortar store, offering your customers the ability to pay in either fiat or cryptocurrency whilst enjoying total freedom from capital and government based restrictions. Needless to say, this can manifest in a reduction of regulatory fees and other expenses.
In addition to allowing contactless payment transactions (explained below), some cryptobanks boast seamless integration with retail POS software. This ‘best of both worlds’ approach makes a strong argument that cryptobanks provide a much more competitive solution for business owners than centralized banks.
The explosion of cryptocurrency in the media may make it seem like a dizzying phenomenon that only the most full-time enthusiasts can handle. In reality, the emergence of all-in-one service providers such as these ‘cryptobanks’ appear to put the power of advanced AI systems and real-time world currency metrics in the hands of any savvy individual.
Due to this decentralized nature, cryptobanks provide powerful solutions to a broad range of business and personal users. These include the security benefits of Blockchain without being bound by external regulations that limit their centralized high street rivals.
Gleb Markov, COO and co-founder of the quickly growing Cryptobank Crypterium, identified key attributes of the Blockchain for regulating decentralized finance activities being that:
“Within the Blockchain, nobody can rollback a transaction, identify a user or block a wallet. Everything is decentralized, anonymous and permanent — and we think it is a wonderful universe to live in.”
He continues to explain the multi-faceted benefits of cryptobank providers, which affect both retailers and the customer alike:
“Stores need to be able to accept not only fiat money but also cryptocurrencies (in various forms, i.e. fiat-crypto, crypto-fiat and crypto-crypto).”
The achievements of Markov’s ICO appear to stand testament to his wisdom, as Crypterium currently supports over 50,000 token-holders with operating services across 154 countries (since its launch on Oct. 31, 2017). It also offers variations of the majority of, if not all, the services mentioned in this article and would be a good starting point when researching such ‘cryptobanks.’
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