Cryptocurrencies are gaining popularity. The underlying technology, blockchain, is being used for various applications. One of the biggest potential applications will be in the banking sector. Banks are archaic and blockchain is ready to disrupt the mammoth sector with innovative solutions that bring efficiency and transparency in operations as well as providing features that a traditional bank would never be able to.
There are quite a few projects like Monaco that have the aim to disrupt the banking and payments sector while new generation projects like FOTON bank have a focussed approach on a much wider net of banking services. Foton bank’s team envisions to provide a complete suite of banking services including a virtual card like Monaco. Let us look at how an ideal cryptocurrency bank can disrupt this market. Some other projects vying for this market are World Bit Bank, My Crypto Bank, European Crypto Bank.
What are Crypto banks?
With the rising popularity of smart contracts on popular platforms like Ethereum, a completely autonomous organisation or a platform with complex banking capabilities is not too far in the future.
Crypto banks are essentially decentralised platforms that can fulfil all the functions of a bank without a mediator. A crypto bank would ideally have following features:
Provide users with accounts. These accounts, although similar to traditional bank accounts, will be completely in control of the user. Even if the platform or the crypto bank shuts its operations, users do not lose their funds.
Anonymous or Identified
A crypto bank can provide the option to keep user data anonymous or link them with their identity by way of KYC procedures.
Business or Personal account set up
It would provide a business or a personal account enriched with relevant services.