Crypto Bank

[Blank-Head]

Crypto bank is a very common thing now. Whenever we talk about cryptocurrency, we think of this crypto bank. This is going to be a very interesting and widely used medium I think it will go in a much better position up front.

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[mindrust]

What interests me is that it makes sense to start a “bank” that will take care of customers like traditional banks do. Opening an account, buying a crypt, maintaining a computer, etc.?

Crypto exchanges already do that. It is nothing new. If you want to operate a crypto exchange you can do it now. Nobody is stopping you. It is not going to be cheap however. Possibly hundreds of thousands of dollars you will need to get on your feet and it might suck another few hundred k's just so you can stay on you feet. That's because there is a wild competition between the exchanges already.

Why would anybody choose you over Binance, Coinbase, Kucoin and other big exchanges?

You'll have to spend crazy amounts on promotions/ads. I'd say give up.

[Taskford]

If institutional bankers will make this idea into reality and give decent percentage return per anum then most provably I will tryst them because we know they are trusted since they are been regulated by the law. But if random people will create this and they are just known online well maybe I doubt I will use their service because scamming is not new on crypto and might they used that if this idea became successful.

[zaesvlas]

If institutional bankers will make this idea into reality and give decent percentage return per anum then most provably I will tryst them because we know they are trusted since they are been regulated by the law. But if random people will create this and they are just known online well maybe I doubt I will use their service because scamming is not new on crypto and might they used that if this idea became successful.

What then is the profit of the bank? What will he pay interest to users for?

[Erdogan]

I was thinking about it for a while. I am a developer, I understand the concept of bitcoin, blockchain and decentralization. There are cryptocurrency buying services, there are wallet creation services. People who want to have cryptocurrency already have and know what they need to use from the service.

But even though blockchain and crypto are designed to be decentralized, in a way I believe that the bank will then slowly switch to crypto and offer you a service, so your bank will make you an account, keep the currency there, you will use the payment card... basically manage everything as they do now. As it is now with fiat. Since a large part of the market people is crypto-uneducated this will be a good opportunity for banks to gain market share.

What interests me is that it makes sense to start a “bank” that will take care of customers like traditional banks do. Opening an account, buying a crypt, maintaining a computer, etc.?

I think that this type of service / product will appear on the market sooner or later. However, I don't think it will be what you think. I think it is simply the bank that will create the electronic form of fiat money. In fact, there is already a lot of talk about it and I think that this type of money will come into use within a few years. Of course, someone new to the market will have a big problem to compete with existing banks, because I am convinced that they are already preparing for it and already have a customer base and operate in accordance with all regulations. Someone new without a lot of capital simply will not survive.

[amishmanish]

Bank is basically a custodian of our money. It offers services which suits it. For most people bank is a good entity. But the concept of bitcoin was to bypass the traditional banking in personal peer to peer transactions. However with increasing numbers and sophistication of scams, I think people will start using banks as custodian to their crypto lust like it do for their fiat.
So In a way yes we might see crypto bank in a year or two

[Crypto Library]

I don't really think that any crypto user like this Banking system . Because the main purpose of crypto currency is avoid those things . Crypto users are the only owner of her wallet  no outside has authority here. But can start like  a centralised exchanger which give consumer nice APY rate.

[goldenmonke]

What interests me is that it makes sense to start a “bank” that will take care of customers like traditional banks do. Opening an account, buying a crypt, maintaining a computer, etc.?

It does not make sense to have a 'crypto bank.'

A bank's core function is to maintain a ledger (a list of who owns what value). BTC is a ledger that was designed to replace this core functionality. In other words: BTC is already a bank.

[Blackie@5]

It's will be a thing of joy for most people that the banks now works in a way of crypto but looking at it other other hand cryptocurrency is something that deals with private keys and it's shouldn't involved third parties, is just you and your wallet, so how would people cope with such a lifestyle exposing their keys to the banks despite their will KYC  involved

So for me I prefer it should be just me and my phase then third party

[CryptoManiac017]

Local banks may not be able to work with this fully because the concept of the Blockchain technology for the crypto space is to be decentralized thereby not letting room for the regulations of the crypto market a d aswell as it's transactions and the local banks are usually regulated and aswell been sanctioned in cases where their transactions and activities fail to stay under the regulations of the government policies about how financial activities should be done in such country or state. An online crypto bank can be created that will still abide under the decentralized system of operation in other to avoid hitches since they will be operating crypto aswell so it will be beyond the regular local banking system it will be such a good innovation amongst crypto enthusiast.

[oktana]

What interests me is that it makes sense to start a “bank” that will take care of customers like traditional banks do. Opening an account, buying a crypt, maintaining a computer, etc.?

For the bank it makes sense. It can even use cypto as a fractional reserve asset, since many customers may just deposit there for long time.

For the crypto user - it depends on the user. Many don't care about "not your keys, not your coins" and if a small APY is offered some will be happy.
Many other users will be outraged, since crypto is meant to avoid third party. Many will prefer to remain anonymous and will keep their coins on their own wallet.
So, it depends on the user.

But.. in order to do this "you" have to
1. Get to get trusted. Big time. No sane person deposits money just like that.
2. "You" have to have all the credentials of a financial institution, accepted in all the countries this service is offered in. Basically "you" have to be a bank with some extra competences.
3. "You" have to ask for KYC from users, which will most probably scare off a big number of the potential customers.

Nowadays banks started making deals with crypto exchanges so they, together, can offer something pretty much close to what you are saying.

The third point here is just about the main deal. This is because asking KYC in cryptocurrency related business is weird. We should have that feature of privacy that no one knows any of your information. Having to WILLINGLY submit KYC and even many more information is not something that I’d do. KYC scares so many people because of various reasons, which also includes data theft. 

[uneng]

3. "You" have to ask for KYC from users, which will most probably scare off a big number of the potential customers.

The third point here is just about the main deal. This is because asking KYC in cryptocurrency related business is weird. We should have that feature of privacy that no one knows any of your information. Having to WILLINGLY submit KYC and even many more information is not something that I’d do. KYC scares so many people because of various reasons, which also includes data theft. 

It's so common for crypto businesses to enforce KYC procedure nowadays. It was weird in the early years of this industry, although now it's already pretty usual, being weird for a business to not demand personal informations from users in order to let them use the platform's services these days. If you want to cashout crypto to fiat right now, you probably have to give your personal ID to an exchange at some point, otherwise how are you going to cashout your profits from crypto investments?

Even if you do P2P transactions, the person on the other side of the transaction will have access to your bank account's informations. Privacy is an utopia, and the risk of having your private informations leaked is a real risk 99% of crypto enthusiasts have to take, otherwise they won't be able to remain active on this industry at most platforms it has to offer to crypto adopters, since they are heavily regulated by local authorities from the countries where they offer services.

[oktana]

3. "You" have to ask for KYC from users, which will most probably scare off a big number of the potential customers.

The third point here is just about the main deal. This is because asking KYC in cryptocurrency related business is weird. We should have that feature of privacy that no one knows any of your information. Having to WILLINGLY submit KYC and even many more information is not something that I’d do. KYC scares so many people because of various reasons, which also includes data theft. 

It's so common for crypto businesses to enforce KYC procedure nowadays. It was weird in the early years of this industry, although now it's already pretty usual, being weird for a business to not demand personal informations from users in order to let them use the platform's services these days. If you want to cashout crypto to fiat right now, you probably have to give your personal ID to an exchange at some point, otherwise how are you going to cashout your profits from crypto investments?

Even if you do P2P transactions, the person on the other side of the transaction will have access to your bank account's informations. Privacy is an utopia, and the risk of having your private informations leaked is a real risk 99% of crypto enthusiasts have to take, otherwise they won't be able to remain active on this industry at most platforms it has to offer to crypto adopters, since they are heavily regulated by local authorities from the countries where they offer services.

I don’t think it’s so much of a problem if someone during P2P sees your bank account name because it’s only your name but nothing exactly about you is exposed. But if you talk about giving your details to these exchanges, it’s very different because they will know your house address, your age, name, next of kin, and everything needed to track you (if they wanted). There’s really a lot of difference compared to when doing P2P to a stranger who doesn’t care what your name is.

[Alone055]

Even if you do P2P transactions, the person on the other side of the transaction will have access to your bank account's informations. Privacy is an utopia, and the risk of having your private informations leaked is a real risk 99% of crypto enthusiasts have to take, otherwise they won't be able to remain active on this industry at most platforms it has to offer to crypto adopters, since they are heavily regulated by local authorities from the countries where they offer services.

You are right, but we are still not at the worst end because we still have decentralized platforms that we can use without having to complete KYC verification at least, although sharing bank or account details to receive the funds becomes a necessity. After all, otherwise, how the person, on the other hand, would pay you and know that he is paying the correct person? So for P2P trades, we can't help but share our details with the person we are trading even if the platform is decentralized, however, for other purposes, we can still avoid doing KYC verification.

We should think about the times in the future when there won't be any decentralized options available for us to use. We know how fast the regulatory pressure is increasing in the industry and every platform is getting regulated by the authorities, they will hunt down decentralized platforms in the future as well for sure, and once that happens, we will have absolutely no option but to comply with their rules and regulations and provide them with whatever they demand to be able to use services that we need because you don't have an option.