So another online wallet service. I wonder how long before they get hacked
They are more than an online wallet service from my understanding.
They're more of a complete financial network. Cyprus is small enough that they can provide wide coverage for merchant services. I think many merchants are interested. So the Cypriots will be able to set up an account, with a familiar bank like setting, get a card, and easily buy from merchants. In theory they can use convenient high tech money management, but the money is now independent of government and banks. It can't be seized, and instead will probably provide increased purchasing power. It's the opposite of what they have now, and is apparently govt. approved.