The financial markets in the world are inextricably connected through the process of globalization. Consider the 2008 crisis in the Euro zone because of the insolvency of the Greek economy. Huge economies like Germany and the UK were brought to a standstill by the comparatively minuscule Greek economy because of the interdependence of the European economy.
However, while the financial markets of the world are connected, individual consumers do not have the same level of connectedness or financial freedom. For example, the lack of interconnectedness between consumers in varying nations means that investors are not generally able to invest in different nations without substantial infrastructures in place.
The Rise of Cryptocurrencies
Bitcoin and other cryptocurrencies are changing the way finances interact, since they present a decentralized, geographically indeterminate structure that cannot be controlled by central governments. Through the blockchain technology, cryptocurrencies link consumers together on a peer-to-peer (P2P) b
This freedom and flexibility has driven the market for cryptocurrencies forward. Massive amounts of capital have entered the market, and the total market cap recently rose above $170 billion.
However, in spite of the P2P nature of cryptocurrencies, they still remain compartmentalized as a financial instrument. Investors cannot leverage their cryptocurrencies into other financial instruments without first converting them into fiat. This limits the market functionality of cryptocurrencies for investors substantially.
Governments are not willing to embrace these new forms of finance. Rather than opening cryptocurrency connections, governments are trying to limit them. The Chinese government has recently banned all ICOs, and the US government, through the SEC, has said that Bitcoin ETFs are not viable at this time.
Connecting the World
One company, CryptoPay, is trying to produce a system that allows for this sort of open financial world, where cryptocurrencies, stocks, equities, bank accounts and other financial instruments are all interconnected and at the disposal of the consumer. Having rightly diagnosed the issues facing consumers today, they’ve announced a plan to address these concerns.
First, CryptoPay is planning to create a platform where cryptocurrency investors will be able to leverage their investments up to four times, and will have access to traditional stock and equity markets. This will provide powerful leverage against the volatility of the cryptocurrency market while also providing a platform for investor diversification.
A single user with a CryptoPay account will be able to invest in cryptocurrencies, stocks, bonds, and equities, without leaving the company platform. This addresses the lack of interconnectedness from traditional banking solutions.
Second, CryptoPay plans to open traditional style bank accounts for cryptocurrency investors. This would link crypto and fiat currencies into a single user account, allowing inter-account transfers and investors to have IBANs for their investments.
What’s more, users would be able to send and receive payments from third party providers without complex exchanges or wire transfers. Users would simply have a bank account that was also crypto-enabled, allowing for smoothness and financial management.
Finally, the company is seeking to build a user-friendly peer-to-peer (P2P) network where clients can manage larger scale projects like an ICO. Underwriting, book running, and other services will be brought under one roof, creating a connected system to bolster ICO creation and support.
With this new platform in place, CryptoPay promises to build a system that allows for mass integration of financial instruments, provides increased client control, and fosters innovation by simplifying financial processes.
ICO Coming
In order to finance the creation of these new features, CryptoPay is starting an initial coin offering (ICO) this month and will be issuing coins called CPAY. They plan to begin with a pre-sale on September 25th, lasting for a week, and then transition to a public sale on October 2nd which will end November 30. The call for partners will continue throughout. Investors who join will receive an additional bonus.
Whether CryptoPay’s solution brings closure to the disconnectedness of financial instruments remains to be seen. However, among companies, CryptoPay may have the most viable and thought through options to date.
That certainly seems like it's going to be some real competition.
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