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Topic: Cryptobank Idea - page 2. (Read 553 times)

full member
Activity: 263
Merit: 101
May 28, 2018, 07:12:48 AM
#34
There is definetly the correlation between those currenies as altoins, bitcoins and regular money. So, the value of altcoin is connected to the bitcoin to convert it, and the value of bitcoin depends on the fiat. And now they both have to have regular money to find out their correlation.
full member
Activity: 336
Merit: 100
May 01, 2018, 02:19:35 AM
#33
Yes, an interesting idea. But the problem is that the cryptocurrency market is too active. Will people want to part with their assets for a long time? During the pamps, they will not be able to sell their cryptocurrencies

Some of them will sure do it. I am planning to use the cryptobank. Watch this video to understand its pros: https://www.youtube.com/watch?v=LB3OCnkJGyU
newbie
Activity: 84
Merit: 0
April 28, 2018, 08:37:06 AM
#32
You must first create a Deposit guarantee Fund of individuals. This is to ensure that people were not afraid to keep their money in the cryptocurrency.
member
Activity: 488
Merit: 10
April 28, 2018, 08:28:26 AM
#31
There's a lot of projects/ICOs that hail themselves as blockchain banks etc, but until now there hasn't been anything resembling a real crypto-bank with fractional reserve rules etc that are self-implemented. The reason for this is quite clear: crypto is the antithesis of traditional finance. But in saying that, why couldn't there be even 1 real cryptobank?

Let's put regulations aside for a minute, and assume a crypto-bank would operate in an offshore jurisdiction that was sympathetic to autonomy of Internet tokens. The crypto-bank would never handle real-life fiat in any way, only BTC and other crypto-currencies.

It would work like this:
1) People can "deposit" BTC/ETH etc into the bank with insurance limits. Eg: Every depositor will have a 50% insurance guarantee on their total deposit.
2) Fractional reserve banking would be allowed but with a twist (I'm against FR personally but just for the idea of the project, we would allow it). The twist is this: At least 50% of deposited crypto must be kept in cold storage and cannot be touched. Compare this to traditional banks which only need to keep 20% or so. We would require a higher safety reserve due to the unpredictable and high-risk nature of crypto investments. The other 50% may be used by the crypto-bank and used for speculative but hopefully low risk investments that are based on the blockchain (well researched ICOs, trading strategies, loans etc). Again, no money is ever converted to USD or any other fiat in order to avoid financial regulations.
3) People may access their accounts and withdraw up to their full balance at any time. In the event of "Bank runs", client funds would be protected by the 50% insurance guarantee whereby 50% of all deposits are in cold storage. The cold storage will only be accessed for client withdrawal, nothing else. Obviously this is a risk to depositors, like with normal banks.
4) People holding their crypto in the crypto-bank would receive the following benefits:
- A base interest rate paid in BTC p/a, such as 5%. This could be paid monthly and have no time withdrawal restrictions. This is to pay for the risk the depositor makes that a bank run may occur and they only receive 50% of their funds. Since the risk of this would be theoretically low if the crypto-bank is reputable, only low interest is offered. Nevertheless the risk is higher than with a traditional bank, and that is why the amount is also higher.
- A time-locked savings interest contract. Like with normal banks, depositors may time-lock their deposit for a specific period of time, such as 6 months or up to 5 years. Interest here may vary between 5.1% - 50% p/a. It may reach as high as 50% p/a depending upon market conditions, such as the crypto-boom of 2017. Here it would make sense for the crypto-bank to offer a 50% interest rate p/a for a 1 year term when x10 returns were common.
- If possible, integration with International bills payment and other automatic payment services that could integrate with the crypto-bank, if the crypto-bank became large enough.
5) The crypto-bank would serve as a convenient alternative to traditional banking by offering a fully anonymous system. Unlike Swiss banking or other offshore jurisdictions which are commonly compromised, since the bank will never deal in fiat and only in crypto, no identity checks ever need to be made. The crypto-bank itself would of course be fully legal and regulated within its jurisdiction, but the jurisdiction would be chosen such that it would allow the bank to legally operate in an anonymous manner. This would be achievable by never, ever dealing with fiat directly in any way which would trigger various laws.

So what's the point of it for depositors? For people on BCT, the bank would be pointless. We're all too advanced to need it. But for regular mom and pop investors, it could be sound. Here is why:
- Most regular crypto investors store all their coins on hot wallets or exchanges, both of which are susceptible to hacking. The procedures involved with cold storage are often too complex for them, even when using hardware wallets. By allowing them to store their coins in a familiar bank environment they would feel more secure.
- Depositors would never need to deal with private keys. Once the deposit is made, they can be verified by either a secret key & pin + 2FA, or if they so choose (purely optionally) personal identity data.
- Depositors would receive regular interest on their BTC holdings with insurance. This is something that doesn't currently exist anywhere (ie: just by holding BTC you receive interest, along with insurance that protects against some of it).

The exact %'s etc mentioned above could of course be changed, but just as a general idea, I think a real crypto-bank could do quite well. Not talking about crypto-projects that want to apply for banking licenses and run a real bank, or projects that issue debit-cards that you can use your balance to pay for things, but a real traditional banking structure applied exclusively to the blockchain with fractional reserve rules and subsequent interest payouts.

I think something like this should come to fruition one day, but why not sooner?

Most of the things you mentioned here can be done even with your wallets. Talking about withdrawing your full balance, that is 100% possible. Every wallets allows users to withdraw their full balance, wallets like Xapo, Coinbase, BitPay and the rest of them available. Even with wallets you’re able to withdraw your Bitcoins or any other cryptocurrency as cash from any ATM (wallets like the BitPay, Coinbase and Xapo). There are lots of things you can do with a wallet and it’s more than just sending and receiving. If we are able to do all these things with a wallet, why do we still ask for a crypto bank? Makes no sense to me.
full member
Activity: 233
Merit: 106
The Operating System for DAOs
April 25, 2018, 11:15:50 AM
#30
The idea looks good in general but I think one of the reasons so many people is turning towards the cryptocurrency thing is to avoid fees and reduce transfer times.

If i am to decide for myself too, i need a place where i can transact with less fee as compared to other crypto markets. Basically, that’s the main purpose of cryptocurrency to help make payment system more easier and cheap.
They could still be fast and cheap. Because they are a bank doesn't mean they will be slow! I love the idea in theory but in actuality I think a fiat bank can implement this system first because of the infrastructure they already have in place. Would love to see an ICO this year that actually pursues this, yet due to regulations incoming I highly doubt it will work or have any significant impact.
full member
Activity: 518
Merit: 101
April 25, 2018, 10:01:31 AM
#29
The idea looks good in general but I think one of the reasons so many people is turning towards the cryptocurrency thing is to avoid fees and reduce transfer times.

If i am to decide for myself too, i need a place where i can transact with less fee as compared to other crypto markets. Basically, that’s the main purpose of cryptocurrency to help make payment system more easier and cheap.
member
Activity: 223
Merit: 11
April 25, 2018, 08:54:19 AM
#28
I have seen a project that will work with today 's banking system in the cryptocurrency sector. It is not known how successful it will be in the first stage. Besides, I do not think you will get a lot of support in the first place. A few years later, when the use of cryptocurrency and the use of cash have reached equal levels, we will officially see such organizations. Moreover, we will make our investments as if they were in cash.
full member
Activity: 364
Merit: 101
April 25, 2018, 08:50:43 AM
#27
Do you believe that it is better to keep your money in bank considering that the value is the same overnight?
jr. member
Activity: 131
Merit: 8
April 25, 2018, 08:29:28 AM
#26
I think cryptobanks are an exigence for the future of cryptocurrencies.

Check out bankera.com. It's an EU based project with a really competitive team behind. Their goal is to raise a "Bank for the Blockchain Era". They are about to launch their own crypto exchange and Issuing crypto debit cards and offering loans are only two of their many goals.

They've also raised over 100 million euros from pre-ico and ico!
newbie
Activity: 78
Merit: 0
April 25, 2018, 08:14:01 AM
#25
I agree if there is a bank crypto but I strongly suspect if the transaction takes a long time, please than we want to perform fast transactions such as  fiat bank
sr. member
Activity: 560
Merit: 250
April 25, 2018, 08:07:44 AM
#24
I'd like to invest into prize bonds. Beside the investments in btc, for me this is the best secure way to invest my money in the bonds, because in my country it is legal.
sr. member
Activity: 1498
Merit: 271
DGbet.fun - Crypto Sportsbook
April 14, 2018, 08:47:12 AM
#23
I like the way the OP proposed his ideas about crypto-banks. Admit it or not, we need banks for our future savings eventhough we already in the cryptocurrency era. The reason why banks did not easily eliminated because it needs by the people who save for the future use. But having a decentralized bank seems like its hard to achieve. There is no assurance also if one person who deposit his money will compensate if the market bear or gone. But for me, it is good to have a cryptocurrency that support banking system because using the blockchain technology, there is a transparency and reliability with your accounts and other information stored in blockchain.
member
Activity: 350
Merit: 10
April 14, 2018, 08:39:06 AM
#22
My idea about about this cryptobank. Will be like this I think its about banking our money from crypto currency since its not yet happening to have cryptobank in this bitcoin industry  well its better to have I think because its just like we are investing our money . banking still have an interest of your money. Cryptobanking are for those people or bitcoin users who don't want to spend their money immediately and Better bank those.

I guess we have the same idea wiith regards to cryptobanks. In a Fiat currency we have banks where we can store out money. The same goes to crypto, we have to have a bank to store our cryptocurrencies which we could also earn interests from our deposits.
newbie
Activity: 123
Merit: 0
April 14, 2018, 07:49:49 AM
#21
I don't ever see any real crypto bank, I don't think if it is good or risky to have a real crypto bank. As what I have been noticed that mostly crypto business transactions could on be done on a private transactions only and without assistant by any persons, it simply transacts via gadgets with internet connection.
member
Activity: 216
Merit: 11
April 14, 2018, 07:23:48 AM
#20
Yes, an interesting idea. But the problem is that the cryptocurrency market is too active. Will people want to part with their assets for a long time? During the pamps, they will not be able to sell their cryptocurrencies
sr. member
Activity: 2366
Merit: 332
April 14, 2018, 03:50:16 AM
#19
The crypto bank idea will be a nice one because cryptocurrency and fiat are actually not in the same physical category even crypto is money. So having a separate bank for it will give it a recognition too.

Crypterium's goal is to provide a complete vertically integrated service that encompasses the best ideas from the entire community of the world's best blockchain enthusiasts.

I also heard of this cypherium. Any further information like bounty campaign going on yet? Is going to have a great impact on cryptocurrency.
member
Activity: 210
Merit: 10
The revolutionary trading ecosystem
April 14, 2018, 03:43:16 AM
#18
This is a good idea. A 5% to 50% per annum this is great compare to bank fiat. Compare to bank fiat the interest rate is 1% or 0.5% per annum. If the cryptobank can secure the depositors from hackers this is great. Hope that our interest for a given deposit does not decrease as market goes down. Besides from minning we have alternative, having a savings that gives us more benefit in return compare to bank fiat. If I'm planning to buy property all I have to do is exchange it in bank fiat for cash transaction as payment for real estate. Because here in the Philippines there is inhouse financing for people that have an issue in their status. This is a great project if it will be implemented.
full member
Activity: 1050
Merit: 100
April 14, 2018, 02:38:32 AM
#17
The idea of virtual currency bank? Why not, I fully support the establishment of virtual currency bank in the future, when the virtual currency is recognized and high value, also need a bank for storage and exchange, the establishment of banks Virtual currency will be inevitable in the future when virtual currency is gradually accepted
may be a conventional bank as it will also provide services for storage of cryptocurrency, especially if we keep ourselves usually a lot of hackers who want to steal it, with the bank cryptos i think will be more secure
newbie
Activity: 84
Merit: 0
April 12, 2018, 06:35:38 AM
#16
The idea is good, but there is one point. If an ordinary Bank is closed for various reasons, the state returns the money to the depositors. Who will return bitcoins?
newbie
Activity: 36
Merit: 0
April 12, 2018, 06:15:08 AM
#15
The idea of virtual currency bank? Why not, I fully support the establishment of virtual currency bank in the future, when the virtual currency is recognized and high value, also need a bank for storage and exchange, the establishment of banks Virtual currency will be inevitable in the future when virtual currency is gradually accepted
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