Banks are getting hot for crypto?
2018 will be most remembered as the year central banks started launching their own cryptocurrencies. Doesn’t it signal a historical turning point in the war between banks and crypto? At our WCDC blog we’ve decided to take a look at these interesting relationships.
It is understandable that banks had before seen cryptocurrencies, like Bitcoin and Ethereum, as threats. After all, currencies on blockchain are able to secure transactions without involving traditional financial institutions.
Earlier this year, sensing severe disruption, major banks like JPMorgan Chase, Bank of America and Citi barred their customers from purchasing Bitcoin or other cryptocurrencies with credit cards, and also launched a coordinated smear campaign to discredit cryptocurrencies.
However, banks have changed their outlook, and today they are actively experimenting with how cryptocurrencies might interact with traditional payment systems in the future. Not as alternatives to credit cards and cash, but as significant parts of the global economy.
An alliance begins
JPMorgan Chase, one of the biggest opponents of cryptocurrency, and one of the United States’ largest banks which also operates in more than 100 countries, is actively developing its own cryptocurrency that is completely anonymous.
Banks are also working with Fintech companies to launch cryptocurrency-based crowdfunding and peer-to-peer lending, using cryptocurrency as the collateral for fiat-based loans.
In addition, banks are getting cryptocurrency developers to design back office systems to help them minimize liquidity costs when it comes to making international money transfers for their customers. How does it work?
A cryptocurrency exchange in the local country acts as the intermediary, and so does a cryptocurrency, like Ripple, for the fiat currencies conversion. This has the potential to save banks up to 40–70% over the traditional method. Global banks and money transfer enterprises, like MoneyGram and Western Union, are testing these methods today.
And there are even more promising applications for cryptocurrency in the banking and finance industry.
What are we doing at WCDC?
While global merchants and consumers are on the lookout for solutions to make cryptocurrency payments anytime and anywhere, our team is already implementing it.
To recall, World Credit Diamond Coin (WCDC) is a project that enables foreign exchange transactions and international fund transfers conveniently by harnessing the full advantages of virtual currency.
We are introducing a payment card, the BR card, which will bridge the cryptocurrency and fiat ecosystems.
The WCDC e-Platform is a blockchain-based digital wallet which enables storage of fiat and digital currencies in one place. The architecture of the e-Platform links affiliated banks and merchants on the platform creating a full-fledged, blockchain based transaction hub.
Users of the WCDC e-Platform will be able to make cryptocurrency payments and have access to a wide variety of affiliated services and promotions through the digital wallet. For example, affiliated retailers will offer loyalty programs, discounts and promotions for their products and services. Amazing, right?
Through the use of sophisticated smart contracts, the WCDC digital wallet will be used as a totally secure store of value and medium of exchange allowing international financial transactions seamlessly.
At WCDC, we are actively reaching new milestones on the path to mass adoption of cryptocurrencies. Recently, our coin got listed on CoinSuper, a TOP-20 exchange according to Coinmarketcap. The trading for WCDC/ETH has started, so hurry up to purchase tokens first!
So, get ready to make regular, everyday transactions with cryptocurrency, or fiat, in an extremely user-friendly and safe environment!
