Why the new economy needs new banks…
Everyone knows that it can be risky trading cryptocurrency. Prices can go down quickly, and often for no good reason.
However, not so many are aware that there are huge business risks for companies working in the crypto world. Not because of the nature of the assets, but because of how those companies are treated by mainstream financial institutions.
The failure of traditional finance to deal properly with crypto companies creates a huge opportunity for Platio to meet the banking needs of the emerging crypto-fiat economy.
Crypto and finance
Companies need financial services. They need to be able to pay for salaries, rent and materials. They also need to be able to receive payments. Ever since our economies started to move away from cash and towards credit, companies have needed finance.
Unfortunately, cryptocurrency companies are ill-served by most financial institutions. Due to the legal and technical complexities involved, banks can often decide simply not to deal with crypto companies at all.
Just this month Brazil’s second largest cryptocurrency exchange, Mercado Bitcoin, lost a case against Banco Itau at the superior court. The judge ruled that banks may close the accounts of cryptocurrency exchanges without any justification, even if there is no evidence of money-laundering or other criminal activity on the part of the exchange.
A similar situation occurred in Chile earlier this year when a series of banks closed down the accounts of crypto-exchanges. Luckily the Chilean Supreme Court stepped in to overturn the ruling, deeming it unconstitutional.
Though something of a trend throughout South America, this phenomenon is by no means confined to that continent. Even Switzerland, generally thought of as a crypto-friendly country, has seen startups moving their banking relationships to Liechtenstein after two Swiss banks withdrew their services from the emerging crypto economy.
The need for a crypto alternative
For the cryptocurrency world to have any chance of success and growth it needs banking. And if the traditional institutions will not provide those services then the cryptocurrency world will have to develop its own solutions.
Which is where we come in.
Platio is developing banking solutions for businesses that need to seamlessly and securely manage both crypto and traditional currencies. Powered by EOS blockchain technology, Platio enables users to pay salaries and suppliers with whichever asset they choose, by card or bank transfer.
A huge problem faced by cryptocurrency projects is ensuring that they are subject to all the necessary regulation. Platio meets these needs as it holds European licenses for crypto operations and is an Authorised Payment Institution.
As our CEO Dima Okhrimchuk said, “all businesses need financial services, and crypto companies are no exception. For the industry to fulfil its potential it must be simple and easy for companies to both receive and spend cryptocurrency. The whole sector must also ensure that it stays on the right side of government regulation. At Platio we are both proud and incredibly excited to be working on what we see as the next generation of the crypto economy, one where companies can use crypto or fiat, whatever is best for the job at hand.”
For crypto to truly take its place as the next evolution of global finance it needs institutional support. With traditional banks refusing to provide that, the way is clear for companies like Platio to solve the legal and regulatory issues which have slowed the spread of this new and exciting technology.