Several analysts have already expressed their belief concerning the hopeless future for traditional banks and payment systems once bitcoin and its brethren reach the skies in terms of economic value, efficiency and ease of use. For instance, the founder and CEO of Morgan Creek Capital Management Mark Yusko claimed that blockchain technology is a disruptive one:
"It is extremely natural to expect banks to be dismissive and skeptical because this [Blockchain and the cryptocurrency Bitcoin] is a disruptive technology. This will change the supply and demand equation for banking. It is that big. I'm not surprised at all that bankers, financiers and Saudi Princes are coming out against it. This is a truly disruptive technology.”
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Well, let’s assume that blockchain technology will dislodge the existing financial system in the future. But what about the uprise of cryptobanks?
Centralized vs. Decentralized
For decades traditional centralized banks have been notorious for being at the forefront of technological advancement. They were efficient both in social and economic ways. The revolution of online payments and credit cards has led to the thrift of all sides of life: individual and business.
However, as someday, PayPal shook up the e-commerce realm, the same way today the self-titled “Cryptobanks” is transforming the current financial system. Such decentralized banks allow ordinary customers and impresarios to use banking services grounded on crypto coins to their fullest, as Dan Mitchell writes for the Cointelegraph. Currently, the humanity is probably staying on the verge of two financial epochs: centralized (fiat) and decentralized (crypto) trading.
Sure enough, this doesn’t mean that all people should give up on the classical banking system and rapidly spill over into the crypto system. But what they could do is to try and become more aware of the upcoming changes and challenges. Becoming an early supporter of new technologies, perhaps, is a right way for providing yourself with beneficial perspectives.
What Do Cryptobanks Offer?
Innovations in paying means have brought the simplicity of use for retailers and users. Among them, there have been such frequent advancements as debit and credit cards as well as more complicated contactless and PIN technologies.
Several decentralized banks have already aggregated mobile payments mechanisms, e.g., QR, AndroidPay, NFC as well as ApplePay. The procuring of worldwide services has been provided by the conjunction of payment technologies with banking, based on blockchain that doesn’t depend on any government.
Among other complementary services which decentralized banks offer is a brand new proposal of credit loans, based on tokens. It can be estimated immediately in every corner of the globe (pending application) and transferred to currency, which a user chooses.
Unlimited benefits for business
There could be unrestricted advantages for entrepreneurs and owners of the business, for sure, should they act with wisdom. To take a handful of examples: a novel business can be built form the ground, and it can employ the services form the cryptobank, which will offer specific solutions to any type of challenges.
One may offer his or her customers to make a payment either in traditional money (fiat) or digital coins. Meanwhile, there will be no need for worrying about restrictions that would come from the will of authorities. But most importantly, the collaboration with cryptobank may lead to the decrease of regulatory commissions and other fees. Furthermore, some decentralized banks even can demonstrate a smooth integration with retail POS software as they will allow contactless paying operations.
Needless to say, as Mitchell emphasizes in his article, cryptobanks seem to offer much more than traditional centralized banks, even though there is still room for the principle take the best out of two worlds.