How to connect cryptocurrencies to banks...

jademaxsuy

full member

Activity: 924

Merit: 221

Quote from: MakeMoneyBtc on March 15, 2019, 09:37:31 PM

Honestly I don't understand why would you want to do that since the banking system is totally different from cryptocurrencies and they are not going to work well together. Banks are against that since they are constantly launching accusations and threats against bitcoin, and probably also cryptocurrencies users are against that since they moved from banks to cryptocurrencies.

However, cryptocurrency couls be integrated by these banks but it will create more transaction fees as bank do not accept crypto. So, instead of receiving crypto the banks will going to convert that one into fiat using their own crypto wallet to fiat wallet or an exchange. This may be costly and the service would not be necessary but therr are things that we just need to accept the service especially if it urgent and involves huge money.

I think banks will.be useful but not for storing crypto but instead for storing fiat money ready ro be processed and converted to crypto in their own exchange.

hotimbineh

full member

Activity: 560

Merit: 100

Quote from: stmar on March 22, 2019, 03:50:06 PM

Quote from: Kakmakr on March 22, 2019, 01:22:06 AM

You have already lost the race, before you even started. The Ripple guys have been sucking Bank dicks for some time now and they totally abandoned anonymity for that purpose and still failed. Grin

Mike Hearn, working for the R3 consortium of Banks are pushing for the same thing with Corda and he is already looking through his ankles to get this spot. Roll Eyes

No, this is different.
Usually, developers try to find a solution only for their coins.
And it looks like an attempt to find a common solution for most cryptocurrencies.
And the more options there are, the better for us. So let them try. Cool

every cryptocurrency developer has used several methods which of course can be linked to banks in every transaction, one of which is to make coins stable, and if synchronization between banks and cryptocurrency occurs and is efficient then of course it will be a reference and consideration for other banks throughout the country follow it

bomj

sr. member

Activity: 1337

Merit: 288

0xbt

Banks and cryptocurrencies

Today, some processing services are trying to use a limited number of cryptocurrencies
as a payment tool.
But the banking sector is not in a hurry to join the use of cryptocurrency.

Why it happens?

The fact is that for a bank to use cryptocurrency, in contrast to the processing service,
you need to take it to your balance. That is, the cryptocurrency should be on the balance
sheet of the bank as a deposit.

As we know, any banking transaction is signed and identified.
Since cryptocurrencies have the property of anonymity, therefore the bank cannot accept
cryptocurrency on its balance sheet.
And we see something like this:

How can this problem be solved?

Suppose that there is a way to sign transactions in a cryptocurrency:
1. The user sends the cryptocurrency to the address of the bank, signs the transaction
with his identification key, which the bank has given him.
2. The bank goes to certify this transaction and credits the cryptocurrency to the deposit
account of the client.

In this example, we see a variant of legal transfer of cryptocurrency to a bank deposit.
To implement such a solution, it is necessary to implement a single strategy for all
cryptocurrencies.
At the moment, in the network “Ethereum” in the form of “ERC” coins there are stable
coins that are already successfully used by processing services, as well as wrapped
tokens there are cryptocurrencies such as “BTC”, “BCH”.
Most likely in the near future we will see other cryptocurrencies in the form of ERC
wrapped tokens.
To solve this problem, we use the “ZENITH Protocol”, with the help of which it is possible
to sign transactions of any “ERC” coins.

And we get the following result:

Examples of transactions signed by our smart contract:
https://etherscan.io/tx/0xd51dc7bf84392fbf3416496e2232f228c596cd5c4297293c7382b1b33692ec2e | DAI
https://etherscan.io/tx/0x6ca0a8fd92c9064abe91b6a7763f54b91cb8a3b114ada62460dc60ede3af5586 | USDC
https://etherscan.io/tx/0xea1d6de7e7c909d57a223b1a7f9c2274100c0e45ad57320ced873832c1772f2e | WBTC
https://etherscan.io/tx/0x8ed657dac3a6ba15c51d6f08631797a5a0ab9693c7e388bdcf788152378c64f6 | TUSD

«ZENITH Protocol»

Medium

Thanks

stmar

member

Activity: 196

Merit: 52

Quote from: Kakmakr on March 22, 2019, 01:22:06 AM

You have already lost the race, before you even started. The Ripple guys have been sucking Bank dicks for some time now and they totally abandoned anonymity for that purpose and still failed. Grin

Mike Hearn, working for the R3 consortium of Banks are pushing for the same thing with Corda and he is already looking through his ankles to get this spot. Roll Eyes

No, this is different.
Usually, developers try to find a solution only for their coins.
And it looks like an attempt to find a common solution for most cryptocurrencies.
And the more options there are, the better for us. So let them try. Cool

Kakmakr

legendary

Activity: 3542

Merit: 1965

Leading Crypto Sports Betting & Casino Platform

You have already lost the race, before you even started. The Ripple guys have been sucking Bank dicks for some time now and they totally abandoned anonymity for that purpose and still failed. Grin

Mike Hearn, working for the R3 consortium of Banks are pushing for the same thing with Corda and he is already looking through his ankles to get this spot. Roll Eyes

bitmedia

full member

Activity: 291

Merit: 100

BitMedia.IO

When cryptocurrencies will be used by people, not by robots and soft, then it will become connected to banks

g8d6n5q9g1

jr. member

Activity: 74

Merit: 1

Six international banks have just signed letters of intent to issue stablecoins, or tokens backed by fiat currency, on World Wire, an IBM payment network that uses the Stellar public blockchain.

eagle10

sr. member

Activity: 840

Merit: 252

Quote

Nevertheless, the cryptocurrency is almost never used as a payment.
Banks and payment systems are in no hurry to use cryptocurrency.

Only banks never used cryptocurrency as payment. Because they hate cryptos. People and believers around cryptocurrency are using it to pay for goods and items they want. Some restaurants and institutions are accepting cryptocurrency as payment in exchange for their service and stuffs. Those banks see cryptocurrency as worthless, valueless code that's why they are not believers. Perhaps, they will create their own code or coin and charge how much the clients will pay for the transfer code of that payment with charge. Isn't it the idea?

MakeMoneyBtc

full member

Activity: 1092

Merit: 117

Honestly I don't understand why would you want to do that since the banking system is totally different from cryptocurrencies and they are not going to work well together. Banks are against that since they are constantly launching accusations and threats against bitcoin, and probably also cryptocurrencies users are against that since they moved from banks to cryptocurrencies.

Stedsm

legendary

Activity: 3052

Merit: 1273

Quote from: bomj on March 12, 2019, 09:25:50 AM

“ZENITH protocol”

“ZENITH Protocol” Smart Contract:

* Main Ethereum Network

* Rinkeby Test Network

Is this thread mainly about advertising your ^proposal^ or what?
Anyways, banks and crypto? Seriously?
I've never thought such combination would be possible (at least they won't give crypto the degree of being a currency). Banks are allergic to crypto, they will show that they're supporting but they will accumulate just in order to throw this thing out of the reach of common people, as who would like to lose the pre-dominancy they've gained since ages. The power, the control over a country's finance makes banks very very strong in their genre and they'd never want to lose it to cryptocurrencies.

Kemarit

legendary

Activity: 3080

Merit: 1353

Quote from: Dhanems on March 13, 2019, 07:16:45 AM

Actually,in the Philippines has bank launch their bitcoin ATM machine and not only in the Philippines, I heard also in europe,Venezuela and soon all over the world..but if the bank have own cryptocoin is much better
Soon we don't need paper money,at the next generation.. Digital money like cryptocurrency is good for the future..

Yeah, but it's local to the Philippines, that go thing about those Bitcoin ATM in the country is that it is back by one of the largest which is UnionBank so it's a welcoming news. But for other countries a complete handshake is very different because we all know that banks is very afraid of crypto but for me it's a long way to go before we can actually connect crypto to banks. Not impossible but it will take years before both of them will have some sort of agreement.

Dhanems

jr. member

Activity: 448

Merit: 2

Actually,in the Philippines has bank launch their bitcoin ATM machine and not only in the Philippines, I heard also in europe,Venezuela and soon all over the world..but if the bank have own cryptocoin is much better
Soon we don't need paper money,at the next generation.. Digital money like cryptocurrency is good for the future..

bomj

sr. member

Activity: 1337

Merit: 288

0xbt

“ZENITH protocol”

“ZENITH Protocol” Smart Contract:

* Main Ethereum Network

* Rinkeby Test Network

bomj

sr. member

Activity: 1337

Merit: 288

0xbt

Quote from: Theb on February 25, 2019, 07:06:31 AM

I really don't think that you will really solve something here. 3rd party wallets already have ways to convert your cryptocurrencies to cash via bank deposits, e-commerce websites also use payment processors such as Bitpay and Coinbase Commerce to make it possible for your customers to pay in crypto which these payment processors would also handle the conversion of it via bank deposit as well. With the process you have given it will only complicate things for something that is already been solved by a lot of wallet and payment processor services.

Perhaps, as long as cryptocurrencies are not recognized as a payment
instrument and do not have legal status, this is not required at this stage.
Processing services work with a limited number of cryptocurrencies.
But if we consider an increasingly stringent policy regarding the legal use of
cryptocurrencies, then most likely we will soon come to this.
This same protocol allows you to sign transactions and thereby legally enter
other coins from the Ethereum network.
And here, a single strategy was developed to solve this problem.
The CFTC is also interested in deciding how to use Ethereum and its derivatives
legally as a payment instrument(request, comments):

Quote

<...>
3. How is the developer community currently utilizing the Ethereum Network?
More specifically, what are prominent use cases or examples that demonstrate the functionalities and capabilities of the Ethereum Network?
4. Are there any existing or developing commercial enterprises that are using Ether to power economic transactions?
If so, how is Ether recorded for accounting purposes in a comprehensive set of financial statements?
5. What data sources, analyses, calculations, variables, or other factors could be used to determine Ether's market size, liquidity, trade volume, types of traders, ownership concentration, and/or principal ways in which the Ethereum Network is currently being used by market participants?
<...>
16. What impediments or risks exist to the reliable conversion of Ether to legal tender?
How do these impediments or risks impact regulatory considerations for Commission registrants with respect to participating in any transactions in Ether, including the ability to obtain or demonstrate possession or control or otherwise hold Ether as collateral or on behalf of customers?
17. How would the introduction of derivative contracts on Ether potentially change or modify the incentive structures that underlie a proof of stake consensus model?
18. Given the evolving nature of the Ether cash markets underlying potential Ether derivative contracts, what are the commercial risk management needs for a derivative contract on Ether?
<...>
20. Are there any types of trader or intermediary conduct that has occurred in the international Ether derivative markets that raise market risks or challenges and should be monitored closely by trading venues or regulators?
21. What other factors could impact the Commission's ability to properly oversee or monitor trading in derivative contracts on Ether as well as the underlying Ether cash markets?
<...>

So the "Zenith Protocol" is aimed at solving the legal issue of legalizing
cryptocurrency, which sooner or later will have to be resolved.

Theb

hero member

Activity: 1680

Merit: 655

I really don't think that you will really solve something here. 3rd party wallets already have ways to convert your cryptocurrencies to cash via bank deposits, e-commerce websites also use payment processors such as Bitpay and Coinbase Commerce to make it possible for your customers to pay in crypto which these payment processors would also handle the conversion of it via bank deposit as well. With the process you have given it will only complicate things for something that is already been solved by a lot of wallet and payment processor services.

bitcoinisbest

hero member

Activity: 1218

Merit: 557

Quote from: countryfree on February 21, 2019, 06:26:57 PM

The question should be: who wants this. As a BTC user, I don't. I'm very satisfied with banks and exchanges as they are. My only hope would be to see shops, real brick and mortar stores, buying and selling BTC a bit like silver coins or gold.

Banks will exists and will functions as they are meant to be in a traditional way only and if any so their could be new crypto banks in some countries who have made it legalized in their country. Also one should be focusin on how can btc be used in our daily life.

kissnger

jr. member

Activity: 58

Merit: 12

Xenia Kissinger

Isn't it something XRP does? Not a fan of them, just heard.

bomj

sr. member

Activity: 1337

Merit: 288

0xbt

Quote from: countryfree on February 21, 2019, 06:26:57 PM

The question should be: who wants this. As a BTC user, I don't. I'm very satisfied with banks and exchanges as they are. My only hope would be to see shops, real brick and mortar stores, buying and selling BTC a bit like silver coins or gold.

No one is interested in our desires. Therefore, we must prepare for the worst.
And when this future comes, it is better to be ready.

countryfree

legendary

Activity: 3066

Merit: 1047

Your country may be your worst enemy

The question should be: who wants this. As a BTC user, I don't. I'm very satisfied with banks and exchanges as they are. My only hope would be to see shops, real brick and mortar stores, buying and selling BTC a bit like silver coins or gold.

joniboini

legendary

Activity: 2170

Merit: 1789

Quote from: bomj on February 18, 2019, 05:24:55 AM

But lately we have been witnessing a tightening of tracking cash flows.
And I would not be surprised if in the near future large cryptocurrency exchanges require confirmed cryptocurrency transfers, that is, signed ones.
So I think we will come to this sooner or later.

Are you saying in the future we'll probably see each time we make a crypto transaction from an exchange we need to sign papers via DocuSign or something like that?

Wow, will it is definitely possible, I doubt users would love that. A better alternative would be to record special words or key in order to make a withdrawal, 2fa and something like that. It's quicker and safer than signing papers.

Topic: How to connect cryptocurrencies to banks... (Read 530 times)