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Title: Cryptobank Idea Post by: OriginTrain on February 28, 2018, 12:59:37 AM 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? Title: Re: Cryptobank Idea Post by: eyebags1994 on February 28, 2018, 01:38:15 AM 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.
Title: Re: Cryptobank Idea Post by: Hydrogen on February 28, 2018, 11:35:24 PM 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. Good well thought out post. On a side note, if a "crypto-bank" were to offer services for cars, real estate, business or personal loans that aspect likely couldn't be fully autonomous and would require some type of identity check. I think something like this should come to fruition one day, but why not sooner? There may be no real advantage in offering a crypto bank format over normal trading exchanges. Crypto with its trust less systems can do many of the same jobs banks do without paying for a physical brick and mortar based location or hiring many employees to carry out transactions, process deposits or withdrawals. Adding a bank infrastructure on top of the existing crypto abstraction layers may not provide enough positive tangible gains to be feasible. Suggesting a crypto bank could be similar to suggesting that amazon open a chain of retail stores across the united states. Their business model and profitability are based upon not paying the additional cost of having physical stores and leveraging that advantage to provide cheaper goods to customers with greater efficiency. Its an interesting question you're asking. Wish more people would chime in and share their views. There isn't much interesting discussion here of late. Title: Re: Cryptobank Idea Post by: Pintasak on February 28, 2018, 11:52:37 PM 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? Crypterium is a cryptobank creating the future today integrated service that encompasses the best ideas from the entire community of the worlds best blockchains enthusiastLet'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? Title: Re: Cryptobank Idea Post by: CHENIEN on March 01, 2018, 12:13:16 AM This question is not new for me, a month ago, I was already saw this kind of question in the forum. If we talk about cryptobanking system, for me, it is not easy to build or establish, because crypto business is not directly endorse by the government, and if we build a structures that accepts depositors of crypto it is already done by the approval of government with a building permit by government, if we try to analyze the conflict is there, crypto business is something anonymous and mysterious people around these particular business. So, it is hard to build a bank of crypto because of the total conflict, the only thing that I believe today is only some banks accepts cryptocurrency transactions.
Title: Re: Cryptobank Idea Post by: joms07 on March 08, 2018, 03:03:36 AM 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.
Title: Re: Cryptobank Idea Post by: jtipt on March 08, 2018, 03:23:55 AM In theory I like this idea, but can it really be made possible? Probably not.
Other than that as you mentioned it will be useless for a more seasoned BTC user, well mostly anyone with significant amount of BTC does his research and becomes a seasoned user. So only people left with will be people with small fraction of BTC, is it really worth the effort for them to store that small amount in a bank? No. Title: Re: Cryptobank Idea Post by: jademaxsuy on March 08, 2018, 03:37:12 AM I don't like the idea of cryptobanking. Meaning there will be a third party that will ensure the holding of these digital currency and what its effect? Will more charging fee to get the coins, charging fee in storing coins, and any other related cryptobank transactions. As for me I would rather to maintain what bitcoin has now that coins are stored in digital wallet though these wallets claims that they are not working like bank but still could store this coins. All you to do is secure your wallet information and zip it in a folder that no once could access it except you. Digital wallet has proven it already that is why there is no need for us to implement cryptobanking. However, if the bitcoin admins will pursue on this kind of project then it would be better to support it since as we all know that before they adopted a project it is being carefuly studied before implementing the project.
Title: Re: Cryptobank Idea Post by: pinkflower on March 08, 2018, 03:38:54 AM 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. Why dont we do away with all that and store and protect our coins by ourselves. If you still think that way, then I think you missed the whole point of cryptocurrencies. Its not only about "money", its also about the liberation of the people from today's financial system that oppresses us. Your proposal is opening a service almost the same as our present oppressors. Title: Re: Cryptobank Idea Post by: Arz26 on March 08, 2018, 04:09:10 AM To provide a complete vertically integrated service that encompasses the best ideas from the entire community of the country.The uniqueness of Cryptobank is that the project allows customers to get services, adapted to their needs. The best solution for people without credit history, to whom traditional banks cannot provide loan proposals, or for whom current offers on the market will cost much more.
Title: Re: Cryptobank Idea Post by: BossMacko on March 08, 2018, 04:38:46 AM - 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. Your Bitcoin will be more secured if you will use a cold storage in a new bought or new formatted laptop or desktop. The only use of that gadget is for your Bitcoin. If ever we have a cryptobank the problem that i can think of are it can also get hack since its online and it has database and dev of that cryptobank have the possibility to run like other exchanges and last having a cryptobank means you need to give them your real name for them to function like the banks if that happens we are not anonymous anymore. Title: Re: Cryptobank Idea Post by: BillCoin on March 08, 2018, 06:06:46 AM All nice and good, but why wouldn't I just keep my money as fiat in banks, with having a much lower chances of losing my funds to fraud/hack.
Af both cases I will get X amount of interest, and at both cases the bank manage the funds with fractional reserve. Also, as bitcoin is really unstable, I would say that if the price drops /rises hard, the bank would go bankrupt really soon as more then 50% of the funds will be requested by users. Title: Re: Cryptobank Idea Post by: sreecanvas on April 11, 2018, 06:39:34 PM Cryptobanks is a modern service for accessing different cryptocurrency exchange markets.Cryptobanks provide a comfortable, practical and profitable platform fueled by cryptocurrencies – suitable for both beginners and experienced traders.
Title: Re: Cryptobank Idea Post by: magneto on April 12, 2018, 10:20:32 AM The idea is interesting. I like the fact hat it does not deal with fiat at all during this process of depositing and investing the funds, and it is supposed to end up as an alternative to traditional banking/Swiss offshore accounts. But, it's not without flaws.
However, the main problems are that it's not perfectly trustless, it would most likely be unlicensed and is prone to getting restricted by governments, and it'll be hard to convince anyone to invest in these funds when it's not a regulated/licensed investment business and you don't even know where exactly the service is located. You have to trust them with your BTC investment after all, and also trust that they will actually keep 50% in reserve as well as paying it out. I'd much rather just invest myself into ICOs or other crypto investments if that's how the cryptobank is profiting. I don't have any counterparty risk in that case. Title: Re: Cryptobank Idea Post by: MonkeyGolden on April 12, 2018, 11:15:08 AM 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
Title: Re: Cryptobank Idea Post by: Ehilamale on April 12, 2018, 11:35:38 AM 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?
Title: Re: Cryptobank Idea Post by: nur rochid on April 14, 2018, 07:38:32 AM 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 secureTitle: Re: Cryptobank Idea Post by: torch2121 on April 14, 2018, 08:43:16 AM 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.
Title: Re: Cryptobank Idea Post by: palle11 on April 14, 2018, 08:50:16 AM 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. Title: Re: Cryptobank Idea Post by: xanto on April 14, 2018, 12:23:48 PM 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
Title: Re: Cryptobank Idea Post by: noriksiayol on April 14, 2018, 12:49:49 PM 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.
Title: Re: Cryptobank Idea Post by: ylnar123 on April 14, 2018, 01:39:06 PM 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. Title: Re: Cryptobank Idea Post by: bettercrypto on April 14, 2018, 01:47:12 PM 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.
Title: Re: Cryptobank Idea Post by: Gufeng on April 25, 2018, 01:07:44 PM 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.
Title: Re: Cryptobank Idea Post by: kiniksarah on April 25, 2018, 01:14:01 PM 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
Title: Re: Cryptobank Idea Post by: meandmrjones on April 25, 2018, 01:29:28 PM 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! Title: Re: Cryptobank Idea Post by: TYPEcoin on April 25, 2018, 01:50:43 PM Do you believe that it is better to keep your money in bank considering that the value is the same overnight?
Title: Re: Cryptobank Idea Post by: musdafakfl on April 25, 2018, 01:54:19 PM 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.
Title: Re: Cryptobank Idea Post by: PalindromemordnilaP on April 25, 2018, 03:01:31 PM 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. Title: Re: Cryptobank Idea Post by: aintnopassincraze on April 25, 2018, 04:15:50 PM 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. Title: Re: Cryptobank Idea Post by: Btcschool on April 28, 2018, 01:28:26 PM 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? 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.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? Title: Re: Cryptobank Idea Post by: Qahay on April 28, 2018, 01:37:06 PM 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.
Title: Re: Cryptobank Idea Post by: p i e c e on May 01, 2018, 07:19:35 AM 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 Title: Re: Cryptobank Idea Post by: joburgtaxi on May 28, 2018, 12:12:48 PM 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.
Title: Re: Cryptobank Idea Post by: Ondre on May 28, 2018, 01:42:25 PM For me, i don,'t see the necessity of having a cryptobank well in fact you can keep tract of your account in your phone and the like. May for those making last will an testament that can be imolemented.
Title: Re: Cryptobank Idea Post by: DMCR lah on May 28, 2018, 02:20:52 PM European Crypto Bank has several unique banking services and is very different from traditional banks in general. The European Crypto Bank service or feature is created to meet the needs of cryptocurrency users.
Title: Re: Cryptobank Idea Post by: gambitcoin53 on May 28, 2018, 02:36:59 PM to make it simple, this is what our personal wallet does, your idea is too good but too complex, it is impossible to deal with this crypto bank without compromising our anonymity, did you mentioned how we can deposit coins in our accounts? without showing our faces to your bank tellers? and at the same time their faces to us? is this more scarier or prone to bank robbers because everybody knows we are putting not just few coins but huge value, that is why it is called a bank.
Title: Re: Cryptobank Idea Post by: Red Fish on May 28, 2018, 02:39:49 PM The first problem can be - how cryptobank will make stable profit. It is very hard to find experienced traders in crypto, who can make stable profit. Plus crypto traders do not invest large amounts in each crypto, so cryptobank can also have problem, where to invest ?
Title: Re: Cryptobank Idea Post by: Gufeng on May 30, 2018, 09:38:50 AM There is a special currency calles XRP that only banks use, and some of them have started working with it. Maybe there will be more banks that decide to join this trend.
Title: Re: Cryptobank Idea Post by: popolite11 on May 30, 2018, 01:09:39 PM There are several ICO projects on the market that are going to develop these cryptobanks. I really love this idea and support it: https://www.youtube.com/watch?v=KWIfBqXeZkc
Title: Re: Cryptobank Idea Post by: LeGaulois on May 30, 2018, 04:36:38 PM The fractional reserve is exactly the problem with banks, so why to apply it with a crypto banks?.
For $1 deposited in a bank, the bank can create $9. Funds used to lend money and to earn an interest rate. But where the money comes from and how a bank can create $9 with 1$ deposited? Fake money! which doesn't exist, the bank just modify your account electronically, but physically the money doesn't exist You can't apply a fractional reserve with a crypto bank, you can't create fake bitcoins. This system using a FR is what makes the current banking system a giant Ponzi Title: Re: Cryptobank Idea Post by: xuv500 on May 30, 2018, 04:54:36 PM Cryptobank idea is a nice one but as per the crypto concept it is against it, crypto currency is free from banks or any institutions but now a days there are so many ICO's coming in with a concept of bank but with crypto currency format. I'm not too sure how it will work or how it will lead the world in the crypto currency market. We need to wait and watch what is happening in future.
Title: Re: Cryptobank Idea Post by: trako on May 30, 2018, 06:05:15 PM Could it be a completely reliable bank. I think that's possible. In the developing world, the idea of a bank that we can earn now without having to buy or sell constantly is very nice, now our account holders are protected, maybe we can get the interest of the coins.
Title: Re: Cryptobank Idea Post by: akikiro on May 31, 2018, 02:34:37 AM good idea!
Title: Re: Cryptobank Idea Post by: Gufeng on May 31, 2018, 11:10:55 AM This is exactly how banks act. Since it is easier today to replace everything with the machines or do things online they have no need in a lot of emplyees so they can save money on that and have more profit.
Title: Re: Cryptobank Idea Post by: act now on May 31, 2018, 11:29:01 AM It's a very interesting idea, but I'm afraid it's impossible to implement it in reality. There is no a fully anonymous banking system, not even in Switzerland. Any Bank is obliged to disclose information about its customers at the request of the regulator.
Title: Re: Cryptobank Idea Post by: crypto_futurer on June 21, 2018, 10:00:56 PM I believe that banks should not be in the cryptocurrency industry, as this is not entirely correct. Cryptocurrency assets should be in the people themselves and should not be given to other people, as this will reveal their identity.
Title: Re: Cryptobank Idea Post by: Babyhouse on July 13, 2018, 04:59:42 AM Cryptobanks is a modern service for accessing different cryptocurrency exchange markets.Itl provide a comfortable, practical and profitable platform fueled by cryptocurrencies – suitable for both beginners and experienced traders.
Title: Re: Cryptobank Idea Post by: lifetimebitcoins on July 17, 2018, 11:10:02 PM Binance is coming up with the decentralized bank the main idea behind having a crypto bank this idea will be implemented in crypto bank concept
Title: Re: Cryptobank Idea Post by: Jr. on July 17, 2018, 11:37:16 PM A single crypto bank that would cater all crypto trader's need would be impossible that is why we have also different types of crypto banks to suit your need and avail banks that will fit your need, you don't have to check all banks and use them. Some also are not working to some areas so they need another bank to use.
Title: Re: Cryptobank Idea Post by: p3ppymon on July 17, 2018, 11:58:14 PM I would like to have a big, trusted ( or better trustless) entity able to provide financial services to the crypto community. It could become the first point of contact for many customers.
I don’t think it would be the “oppressor” as the conventional banks are. The point more appealing to me would be the interest return for customers, removing the ripping off interests paid by banks. Dividends will be fairer to all the investors with numbers publicly available. Loans will be issued much quicker and with honest interests. Crystal clear smart contracts for transparency. Obviously the risk of losing the funds from a cyber attack is high, but can counter fight and minimised with proper measurements. Let’s see how long it takes before this will become a reality. Title: Re: Cryptobank Idea Post by: bowals on July 19, 2018, 08:16:58 PM The air of uncertainty is too much to develop a banking institution for this era. Until all settles, and the laws become apparent will this become a reality
Title: Re: Cryptobank Idea Post by: Visteryy on July 27, 2018, 09:15:10 PM This is exactly how banks act. Since it is easier today to replace everything with the machines or do things online they have no need in a lot of emplyees so they can save money on that and have more profit. Actually, it is similar to how banks operate.It's easier today to replace everything by machines or do things online that they do not need many users so they can save money and make more money. Accordingly, we find that it also operates smoothly and flexibly to make it look the same. It is important, however, to depend on the community to accept them. Title: Re: Cryptobank Idea Post by: escalante28 on July 28, 2018, 12:40:42 AM I believe Mycryptobank.io will be the first to implement what you are looking for. MyCryptobank is travalling around the world to deal with country government. They also come here in our country and dealing with the government secretary for planting a Cryptocurrency ATM. They also got an international partnership like IBM for their project. You can read their whitepaper for more information. Like I said they will be the first Cryptbank the will be planting a cryptocurrency ATM all over the world.
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