[CBNK] Cryptocurrency Bank feasibility discovery

[anderl]

If there was an entity that acted like a multicurrency financial institution what products and services would you utilize.

Multiple cryptocurrencies.
Daily exchange rates between currencies.
Deposit accounts with interest rates
Lending services, collateral backed and otherwise.
Investment accounts.
Customer credit worthiness.
Escrow.

Would you use it?  Why?  Why not?  What other services would you like to see?

[broken_pixel]

I will use the Free Bank of Digitalcoin.

[anderl]

I will use the Free Bank of Digitalcoin.

Not what I'm asking.  I'm looking for the feasibility of and multicurrency (BTC, LTC, FTC, DGC, etc) bank that provides services such as savings, deposit, lending, investment, merchant, etc

[daggerismo]

i need a credit for 1000000 LTC... if you give me that amount with a reasonable interest % i will use it

[tob101]

Not possible at this stage. I'm quite new to crypto, but If you ask to some old timer, they'd tell you about people highly respectable in the crypto community who run-away with around 50,000 BTC.

Trust is essential in any "banking" business, to make matter worse, it is not regulated, i.e., there's no law enforcement to punish someone who choose to run away with the deposits. In real life, at least they can be charged and brought to justice, in crypto world now, it is a jungle, no law. That's why I wouldn't trust my crypto to any "bank". I'd even be reluctant to keep large sum of of crypto in exchanges.

If there was an entity that acted like a multicurrency financial institution what products and services would you utilize.

Multiple cryptocurrencies.
Daily exchange rates between currencies.
Deposit accounts with interest rates
Lending services, collateral backed and otherwise.
Investment accounts.
Customer credit worthiness.
Escrow.

Would you use it?  Why?  Why not?  What other services would you like to see?

[N1CKH0LAS]

Why would you want to centralise a decentralised currency ? I wouldn't give any entity the power to control my hard-earned coins EVER. Deposit your cons here and we'll take care of them. You'll never have to worry about them ! ORLY ? How ? By running away with them ? Great !

Of course, it's great to have entities and individuals offering such services as they make your life easier, but unless you're 100% certain they won't run away with your coins and you also have the ability to check 100% of the time where your coins are, such entities are useless or even detrimental for the regular users. Real life situation is the best proof ever.

[Snail2]

Hmm. A powercoin savings account would be very useful now 

[anderl]

Thanks for all your constructive criticism. 

The bank would completely transparent.  Adhoc reporting would be available that would address where each cryptocoin would be located.  The banks corporate information would be published along with the contact information for each of the board of directors.  There would be no reason to hide under the guise of a forum account as this would be a publicly open institution.

Accounts would be interest bearing with a rate equivalent to the investment that the bank is making with the deposits.  You would control which investments the coins were directed towards.  Depending on the type of investments they would have a lock in period similar to a CD.

The primary vehicle for generating interest on deposits would be through lending operations.  Customers of the bank would be required to establish trustworthiness in order to obtain a loan.  It would be the same in the real world.  Providing collateral would reduce the lending rate, allow for larger loans.  Providing contact information, email, address, phone, bank account numbers would further improve lending rates.

The lending products are there to help improve the coin community.  A way to help invest in the development of coin features by improving coins increasing their value while providing the depositors a return for their investment.  It would also allow for small investors who do not have the capital but have a very well established trust with the bank to maximize their gains through leverage thus improving the profits for depositors.

This bank wouldn't be a store of wealth but an investment vehicle.

[digitalindustry]

 It would be the same in the real world.  

I know what you are leaning towards but , actually its not the same as in the "real" world because Financial institutions collateralize Debt through a fractional reserve system - this is actually how Banks make so much wealth , of course you understand they create "new" money when they create "new" Debt  .

this is how they reap interest on the same entity many times,

without that feature (impossible for Cryptocurrency, its essentially a permanent 51% attack with double spends) the "Bank" will take on a lot more risk to conduct financial transactions.

I'm not saying its impossible , and to tell you the truth it will exist in the future , but I'm just explaining the differences.

Modern real world "Banking" really is a scam, but its not really the Banks fault its just the system they exist in, only a tiny % know how it even works.

but its that "Scam" that lets them take a lot more risk, add then , the fact that they have a lot of political control , and we end up where we are.

I'm just pointing out that the Risk is skewed the other way with Cryptocurrency. 

[anderl]

 It would be the same in the real world.  

I know what you are leaning towards but , actually its not the same as in the "real" world because Financial institutions collateralize Debt through a fractional reserve system - this is actually how Banks make so much wealth , of course you understand they create "new" money when they create "new" Debt  .

this is how they reap interest on the same entity many times,

without that feature (impossible for Cryptocurrency, its essentially a permanent 51% attack with double spends) the "Bank" will take on a lot more risk to conduct financial transactions.

I'm not saying its impossible , and to tell you the truth it will exist in the future , but I'm just explaining the differences.

Modern real world "Banking" really is a scam, but its not really the Banks fault its just the system they exist in, only a tiny % know how it even works.

but its that "Scam" that lets them take a lot more risk, add then , the fact that they have a lot of political control , and we end up where we are.

I'm just pointing out that the Risk is skewed the other way with Cryptocurrency. 

I agree that the fractional reserve system allows banks to reduce their risk tremendously and yes a cryptobank would take on risk for the benefit of depositors.  Some loads would default but some would produce.  Its the aggregate that I'm looking to that would net a return for depositors.  Whether it is to fund the expansion of a mining operation, the creation of a new faucet site for a crypto the bank would help fund the project through deposits in return for a return on the loan.  It's a means of reducing risk in crypto currency investment.

Currently the only thing you can do is buy and hold and hope that developers will appear to help improve the utility of a cryptocurrency.  But what if you could buy and hold them in a deposit account and those funds would be loaned to help promote utility. 

What I'm trying to get at is to create a banking institution that is for the better of the cryptocurrency community.  Not a storage for coins, not strictly an investment vehicle and definitely not to scam.

Would establishing a board of directors that included 1 developer from each of the serviced cryptocoins help establish trust?

[barwizi]

Noirbank is currently under development but hurdles are everywhere. The first thing you have to answer is what kind of institution would you say you are establishing? If you include a currency such as USD you will have to register as a commercial bank, which means being connected to a national reserve and being subject to the banking laws of that nation.

I spent 4 hours on a conference call trying to explain what how and why crypto-currency is. Then they asked the obvious question, OVERSIGHT and TAXATION. Already if you look at the crypto world, those are alien words.

[anderl]

Noirbank is currently under development but hurdles are everywhere. The first thing you have to answer is what kind of institution would you say you are establishing? If you include a currency such as USD you will have to register as a commercial bank, which means being connected to a national reserve and being subject to the banking laws of that nation.

I spent 4 hours on a conference call trying to explain what how and why crypto-currency is. Then they asked the obvious question, OVERSIGHT and TAXATION. Already if you look at the crypto world, those are alien words.

Yes I'm trying to stay away from fiat.  This would be strictly cryptocurrency.  If it takes off and develops a large deposit base then I would consider including fiat money exchange, but not fiat money deposits.

It is good to see others are engaging existing financial institutions.  It is getting the the concept of cryptocurrencies out into the public space.

I'm doing this feasibility study for an undisclosed financial institution that is considering entering the cryptocurrency market but has no interest in implementing a solution that will not have a return.  So a banking experiment in cryptocurrencies such as this, if successfully will entice them to invest.

[digitalindustry]

Noirbank is currently under development but hurdles are everywhere. The first thing you have to answer is what kind of institution would you say you are establishing? If you include a currency such as USD you will have to register as a commercial bank, which means being connected to a national reserve and being subject to the banking laws of that nation.

I spent 4 hours on a conference call trying to explain what how and why crypto-currency is. Then they asked the obvious question, OVERSIGHT and TAXATION. Already if you look at the crypto world, those are alien words.

Which nation and at what level of government ?  if you don't mind me asking?

[digitalindustry]

Noirbank is currently under development but hurdles are everywhere. The first thing you have to answer is what kind of institution would you say you are establishing? If you include a currency such as USD you will have to register as a commercial bank, which means being connected to a national reserve and being subject to the banking laws of that nation.

I spent 4 hours on a conference call trying to explain what how and why crypto-currency is. Then they asked the obvious question, OVERSIGHT and TAXATION. Already if you look at the crypto world, those are alien words.

Yes I'm trying to stay away from fiat.  This would be strictly cryptocurrency.  If it takes off and develops a large deposit base then I would consider including fiat money exchange, but not fiat money deposits.

It is good to see others are engaging existing financial institutions.  It is getting the the concept of cryptocurrencies out into the public space.

I'm doing this feasibility study for an undisclosed financial institution that is considering entering the cryptocurrency market but has no interest in implementing a solution that will not have a return.  So a banking experiment in cryptocurrencies such as this, if successfully will entice them to invest.

Security is going to be the first question everyone asks -  solve that , and you might have something if you keep it pure Crypto -

[barwizi]

Noirbank is currently under development but hurdles are everywhere. The first thing you have to answer is what kind of institution would you say you are establishing? If you include a currency such as USD you will have to register as a commercial bank, which means being connected to a national reserve and being subject to the banking laws of that nation.

I spent 4 hours on a conference call trying to explain what how and why crypto-currency is. Then they asked the obvious question, OVERSIGHT and TAXATION. Already if you look at the crypto world, those are alien words.

Which nation and at what level of government ?  if you don't mind me asking?

I'd like to keep that on the low a bit, i'd like to be the first to accomplish it. But i can tell you that i spoke with a panel from the deputy governor's office of their reserve bank.  The country is facing serious issues with it's own currency.

[digitalindustry]

Noirbank is currently under development but hurdles are everywhere. The first thing you have to answer is what kind of institution would you say you are establishing? If you include a currency such as USD you will have to register as a commercial bank, which means being connected to a national reserve and being subject to the banking laws of that nation.

I spent 4 hours on a conference call trying to explain what how and why crypto-currency is. Then they asked the obvious question, OVERSIGHT and TAXATION. Already if you look at the crypto world, those are alien words.

Which nation and at what level of government ?  if you don't mind me asking?

I'd like to keep that on the low a bit, i'd like to be the first to accomplish it. But i can tell you that i spoke with a panel from the deputy governor's office of their reserve bank.  The country is facing serious issues with it's own currency.

i've off the record designed/shaped policy for government - not African ones but ha ha -

keep us up to date i'd be super interested to see how it all goes, i don't think i could contribute in this instant , but tell them tax is easy, just introduce a flat style Vat Tax , if the velocity of the currency causes a lift in retail production and spending, then the resulting lift will net an overall tax benefit, as they are African i don't know the rest , the problem they would see is at the larger end of the market.

in this case , there could be a policy to split the economy into retail and infrastructure, with the large tax element staying as is and then the retail side going back and forth on a fixed exchange basis .

but that's just off the top of my head in about 20 seconds.

good luck with it all !

[r32godzilla]

I will use the Free Bank of Digitalcoin.

+1 This service is a potential game changer and if anyone can do it Baritus can. Looking forward to it

[anderl]

Noirbank is currently under development but hurdles are everywhere. The first thing you have to answer is what kind of institution would you say you are establishing? If you include a currency such as USD you will have to register as a commercial bank, which means being connected to a national reserve and being subject to the banking laws of that nation.

I spent 4 hours on a conference call trying to explain what how and why crypto-currency is. Then they asked the obvious question, OVERSIGHT and TAXATION. Already if you look at the crypto world, those are alien words.

Yes I'm trying to stay away from fiat.  This would be strictly cryptocurrency.  If it takes off and develops a large deposit base then I would consider including fiat money exchange, but not fiat money deposits.

It is good to see others are engaging existing financial institutions.  It is getting the the concept of cryptocurrencies out into the public space.

I'm doing this feasibility study for an undisclosed financial institution that is considering entering the cryptocurrency market but has no interest in implementing a solution that will not have a return.  So a banking experiment in cryptocurrencies such as this, if successfully will entice them to invest.

Security is going to be the first question everyone asks -  solve that , and you might have something if you keep it pure Crypto -

Yes security is paramount especially with all that goes on in the crypto community.  It has always been at the forefront of our software development.