Blockchain-based cryptobanks appear to be the way of the future
Most people live by the old saying that money makes the world go round. Even though times may have changed, the sentiment remains the same in today’s modern world. Something that has changed though is the way that we utilize financial systems.
At the core of all technological advancements in the payments industry lies customer usability. Remember the days when you had to physically go into a bank to deposit money? How about trying to pay someone in another country. Modern Internet banking and initiatives like PayPal have made these processes so much easier for customers.
This begs the question, what’s next? What more can be done to offer even simpler solutions? The answer could lie in Blockchain Technology.Yes, it is the underlying technology for cryptocurrencies, but its benefits aren’t just reserved for that industry alone.
Cryptobanks combine blockchain, advancements in artificial intelligence (AI) and access to real-time data to make a decentralized and complete banking solution for everyone, including e-commerce retailers, and the customers that buy from them.
These digital banks can also aid in the global adoption of cryptocurrencies as a viable medium of exchange in everyday life. Transactions can be processed faster, and at a greatly reduced fee compared to traditional banking institutions, thanks in part to the power of blockchain. Gleb Markov, who is the COO and co-founder of the Crypterium, a cryptobank, explained:
“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.”
This is in stark contrast to the strict processes, not to mention the paperwork, inherent in established financial institutions, where banks even have the power to suspend your account.
As interest and adoption of virtual currencies grow, so does the need for retailers to keep up with times by providing payment options. Markov continued:
“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.”
Banks aren’t just there to help you buy things. Starting your own business can be exciting, but also stressful when thinking about your traditional bank giving you the finances to realize your dream. Cryptobanks can solve this issue with tailor-made solutions specific to your business. In addition, these digital banks can provide token-based credit loans as well.
Added customer ease-of-use? Most of these banks have integrated mobile payment methods, such as QR and AndroidPay into their operating systems.
Cryptobanks can also revolutionize the unbanked population. People who do not have access to brick-and-mortar institutions, but who do have access to the Internet, can benefit from digital banks, with many blockchain-based initiatives providing similar solutions already.
Author : Jack Dean
Jack has worked in the cryptocurrency industry for 5 years now as a reporter. His experience is predominately in banking, while he also has a keen interest in the forex world. His daily output is read by thousands of readers globally.