Cryptobank Idea

[noriksiayol]

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.

[ylnar123]

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.

[bettercrypto]

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.

[Gufeng]

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.

[kiniksarah]

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

[meandmrjones]

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!

[TYPEcoin]

Do you believe that it is better to keep your money in bank considering that the value is the same overnight?

[musdafakfl]

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.

[PalindromemordnilaP]

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.

[aintnopassincraze]

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.

[Btcschool]

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.

[Qahay]

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.

[p i e c e]

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

[joburgtaxi]

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.

[Ondre]

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.

[DMCR lah]

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.

[gambitcoin53]

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.

[Red Fish]

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 ?

[Gufeng]

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.

[popolite11]

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