Why Crypterium is the future of banking?

Why did we decide to create a cryptobank? Why do we believe in this idea so much — even if banking systems looks like something rock solid and doesn’t need any changes, at least at first sight?

There are a lot of inventions nobody believed in. Nobody could imagine that TV will beat radio. Nobody trust enough in new media — and now Buzzfeed is included in the White House press corps. Yes, banking sphere is much slower adapting for changes — but still adapting.

Blockchain banking for the majority of people looks like something from Monopoly game series. Most people don’t understand how cryptocurrency works and how it even exists without regulation from government. But it doesn’t stop crypto enthusiasts from all around the world. Right now you can find approximately more than 900 cryptocurrencies available, and the number grows exponentially.

Some major players are already showing interest in cryptocurrencies — Barclays U.K. CEO Ashok Vaswani told in an interview that the bank has spoken to regulators about cryptocurrencies like Bitcoin. This conversation involved talking about how to bring Bitcoin “into play”.

The world’s central banks can’t sit back and ignore the growth in cryptocurrencies as it could pose a risk to the stability of the financial system, according to the Bank for International Settlements (BIS).

It said central banks will need to figure out whether to issue a digital currency and what its attributes should be, though the decision is most pressing in countries like Sweden where cash use is dwindling.

At the Bank of England, Mark Carney has cited cryptocurrencies as part of a potential “revolution” in finance.

To better understand the system, the Dutch central bank has created its own cryptocurrency, albeit for internal use only.

Speaking at a bank investor conference in New York, Jamie Dimon, chief executive of JPMorgan said:

“The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”

But Edward Tilly, chairman and chief executive of exchange group CBOE, said at the same conference this:

“Like it or not, people want exposure to bitcoin”

Despite huge dependence on technology, banking is one of the parts of the global economy on which the development of the digital component still has very little impact. But blockchain will change it — sooner or later.

A traditional banking system works with fiat money. Such currencies as the US dollar can be printed, when necessary — their number is unlimited. And this leads to inflation.

Banking system is open to manipulations with exchange rates and fraud by high-ranking bankers and governments. Many banks operate on “fractional reserve banking”, in which they have cash only to serve a certain number of customers simultaneously — so if all customers will try to immediately withdraw their money, a bank will collapse.

The remaining disadvantages of the traditional banking system include:

— inflation can negatively affect the value of the money

— lack of transparency

— high cost of bank operations

— exchange of information between banks in different countries is very slow, especially when it comes to different currencies

What are the advantages of cryptocurrency?

— Decentralization

Unlike the traditional banking, there is no central control in the blockchain. The exchange rate is influenced only by the market economy, and not by state regulation, while the transactions themselves are much simpler and more transparent than standard bank transfers.

— Faster transactions

Transactions between different banks can take up to several days and usually are held only on business days. Blockchain allows you to reduce the transaction time to a couple of minutes, and processing can be done 24/7.

— High level of transparency and security

Any changes made to the blockchain are publicly available to all parties. This increases the transparency and integrity of the process, as users can be assured that transactions will be executed as intended. In addition, all transactions cannot be changed or deleted.

— Getting rid of unnecessary intermediaries

With the technology of blockchain, employees can work together without the need for a complex hierarchy. Technology at once relieves payments of the need to undergo a procedure for verifying payments, insurance, deposition and other procedures that complicate the process — and, therefore, from dozens of useless intermediaries.

— Decrease in operating expenses

Excluding third-party intermediaries and the cost of additional operations, the blockchain is able to significantly reduce the cost of payments.

While big banks are taking small steps, there is a dozen of banking projects on ICO. They improve everything that usually comes to mind as disadvantages of traditional banking — slow payments, a currency exchange with high-interest rate, small chances of getting credit with a low score. Some projects are offered instant payments peer-to-peer, integration with NFC payment systems (ApplePay, SamsungPay, and AndroidPay) and easy lending process.

Some projects are literally “shooting to the stars”. Crypteriums as an example is going to build first digital cryptobank with credit token and open platform. There is definitely a lot room for maneuver. Project is going to start an ICO with pretty bold, but realistic goals. Easy to believe that this is one of the ideas that will have its place in history.

What will happen next? It looks pretty simple. People will start using cryptocurrencies eventually — as soon as there appears comfortable and convenient solution for the most popular platforms. With media buzz about everything that connected with Bitcoin, Ethereum or any other type of currency, the hype will only grow. Of course, big players don’t like to stay aside when something like this happens — and they wouldn’t. But it’s going to be too little too late for them even with biggest money in the world. Most possibly, enthusiasts that are making their banking app based on cryptocurrencies right now are going to get their piece of cake. And they will take it from traditional business in this sphere.