Topic: How I would approach cryptocurrency if I was a bank - page 2. (Read 294 times)
Well as a bank, you sign a bunch of agreements and promise to comply with certain regulations. If a bank decided to use cryptocurrencies to transfer money overseas to decrease SWIFT fees, that bank would be cut off from the international banking system and dollar system overnight. So it's not as simple as you put it.
Haven't you just described what Coinbase is trying to do? Become a bank?
Only they are starting with the cryptocurrency wallets and will likely add current accounts and loans later, after they've floated on the stock market and raised a lot of capital.
I'm surprised the existing banking system can't see what is coming.
Only they are starting with the cryptocurrency wallets and will likely add current accounts and loans later, after they've floated on the stock market and raised a lot of capital.
I'm surprised the existing banking system can't see what is coming.
1. I'd accept that crypto is here to stay and not fight it
2. I'd develop an online wallet service for my account holders. So say Joe Bloggs has a current account and savings account with me. I'd offer to allow him to set up an online cryptocurrency wallet with me as well, linked to his current account. I'd market this as a cryptocurrency savings account. If Joe Bloggs wanted to cash out some of his crypto savings, I'd allow him to sell at the click of a button, with the cash appearing in his current account to use.
3. I'd set up merchant services, so merchants could accept payments in cryptocurrency, bypassing VISA. I'd make sure my fees were lower than VISA's to encourage take up. I'd contact all my existing business customers to alert them to this new service.
4. If I was an international bank I'd move money around internationally between branches using cryptocurrency in order to avoid SWIFT and their fees.
5. I'd offer cryptocurrency loans at competitive interest rates to my best customers.
I'd be making money hand over fist by embracing this brave new world while my competitors were not.
So why arn't the banks doing this? They can save a huge amount by cutting VISA out of the picture. So are they just slow/dinosaurs who can't see the potential profit here?
2. I'd develop an online wallet service for my account holders. So say Joe Bloggs has a current account and savings account with me. I'd offer to allow him to set up an online cryptocurrency wallet with me as well, linked to his current account. I'd market this as a cryptocurrency savings account. If Joe Bloggs wanted to cash out some of his crypto savings, I'd allow him to sell at the click of a button, with the cash appearing in his current account to use.
3. I'd set up merchant services, so merchants could accept payments in cryptocurrency, bypassing VISA. I'd make sure my fees were lower than VISA's to encourage take up. I'd contact all my existing business customers to alert them to this new service.
4. If I was an international bank I'd move money around internationally between branches using cryptocurrency in order to avoid SWIFT and their fees.
5. I'd offer cryptocurrency loans at competitive interest rates to my best customers.
I'd be making money hand over fist by embracing this brave new world while my competitors were not.
So why arn't the banks doing this? They can save a huge amount by cutting VISA out of the picture. So are they just slow/dinosaurs who can't see the potential profit here?
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