Mission & Vision of BASIC
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Crypto has come much closer to our lives in recent months. We often hear news regarding corporate giants joining the crypto world. For example, the Samsung Galaxy S10 is equipped with a blockchain key store and wallet,
Facebook is preparing to launch its own Whatsapp service and issue its own tokens that can be used globally in the e-commerce market. Last night, Starbucks even stated that they began to accept crypto as a method of payment.
The word ‘cryptocurrency’ is no longer new to us.
Beyond self-sufficient societies, as productivity improved, people began to trade extra resources. Since good were frequently exchanged, people often felt the inconvenience of exchanging the goods themselves. Thus, currency was born as an intermediary medium. Since then, money has continued to evolve from metal and paper to cryptocurrency. In particular, as most countries adopted currency-based capitalism into their economic system, a business that is responsible for circulating currency, which we call a bank, has become more important.
Definition and role of banks
The dictionary’s definition of the term ‘bank’ refers to a business that lends money raised by taking deposits, issuing securities or other debt instruments, and paying debts from an unspecified majority. Through deposits and loans, banks play a key role in the capitalist economic system, such as efficiently brokering funds, creating credibility for economic flow, and helping to smooth the payment of funds.
Today’s banking services began in the 13th century in England. It was common for the citizens of London to leave precious jewelry and currencies in the Mint in the Tower of London, but after the confiscation of precious metals by Charles I during the war in 1640, they began to entrust precious metals to goldsmiths. The goldsmiths not only kept the precious metals safe but also received credit for returning the metals whenever they were needed, which is where the issued certificates of deposit are parallel to today’s purchase and selling of cash and checks.
On the other hand, the goldsmiths found out that the quantity of the precious metal or the money kept in them was only a fraction of the amount of money left in them so that they were able to issue more certificates or lend their precious metals to others. We have developed into a private bank that organizes deposit and lending activities.
In the early 19th century, when the Industrial Revolution was over, many private banks went bankrupt due to severe panic. As a result of the competitiveness of the smaller banks, the banks merged to supply the larger banks such as the ones that exist today.
However, today’s banks are losing confidence due to the various incidents such as inflation in Weimar, Brazil, Argentina, Zimbabwe, and Venezuela, subprime mortgage loans, loan interest rate manipulation, and bank loans.
It is Bitcoin that was born with a break of trust in the central agency. It is a new currency system that allows you to trade without intermediaries. It is an asset and investment product that has been steadily rising since 2009.
Absence of a cryptocurrency bank
Have you seen any banks that acknowledge cryptocurrencies like Bitcoin as a legitimate currency?
If a bank that uses loans as its primary business receives deposits and pays interest continuously while there is insufficient demand for loans, it is more likely to go bankrupt.
Furthermore, if you are not able to pay, but still receive deposits, you have the potential to develop into a Ponzi scheme in which interest is returned to your savings and then collapses at some point.
Blockchain and cryptocurrency are entirely new industries. From an institution’s perspective, the loan market is too small to take risks and it is difficult to operate under existing banking, loan-related laws and licenses.
It has been 10 years since various cryptocurrencies have been created like Bitcoin and Etherium, which are widely in use now. However, the biggest demand is only from speculators.
And that’s what happens when you deposit your fiat currency through a bank, and you get a flat interest rate, and you can only get a price volatility return, but you can’t get an extra financial return, so you have to get a lot of speculative funds or short-term investors.
However, in recent years, the market has been growing at a large scale, with the use of cryptocurrency as collateral, or the use of fiat currency as collateral. This is due to the volatility of cryptocurrency and an increasing number of institutions seeking to invest in leverage.
Mission and Vision of BASIC
Global Findex, published by the World Bank, states that 1.7 billion people worldwide do not have bank accounts, but about two-thirds of them have mobile phones.
In fact, mobile financial services using digital assets are growing explosively in developing countries where financial infrastructure is lacking. The success of Mobile Money, M-Pesa, which has become a mandatory service in Kenya, and AliPay and WeChatPay in China, are examples of this.
In addition, the Goldman Sachs-Apple collaboration is an attempt to preempt mobile financial services based on the popular iPhone. Thus, in the future, IT-based companies that are not tied to bank accounts or fiat currencies are likely to become dominant in the financial industry, especially if there are unrestricted borders for cryptocurrency and transactions.
Just as the bank was an intermediary between personal asset deposit and loans, BASIC will continue to expand into a Digital Asset Financial Platform, starting with a faithful link between personal cryptocurrency assets and the exploding demand for cryptocurrency loans from institutions.
The vision of the BASIC is as follows:
To accelerate the world’s transition to digital money
The vision of the BASIC is as follows:
Basic Everywhere
By converting crypto wallets into accounts and paying interest accordingly,
By providing loan products and various cryptographic investment products to enable safer and more profitable asset management,
By increasing the use and benefits of lagging cryptography, why don’t we become a comprehensive financial platform for digital assets as BASIC’s mission?
Starting with the bank, support BASIC’s future and innovation of the financial industry!
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