With all of the different projects connected to the blockchain that are around, it seems strange to think that World Bit Bank is proclaiming that they are the very first cryptocurrency bank. Of course, that then does mean that it deserves some additional exploration to determine if what they offer is going to be something that people will be interested in because the concept of a bank that merely operates within this field could be a rather cool development.
https://wbb.io/
The first thing to know is that the team behind this project do have an actual legal right to operate as a bank thanks to them completing all of the necessary paperwork in Estonia. So, as they have the legal footing, it does then allow them to move forward with their project while also providing individuals with a number of guarantees and laws to protect them if they use their services.
They state that it is their aim to not build a bank from the ground up but to acquire banks in a variety of countries that are already in existence. Once they do this, they will then offer a series of financial products, such as normal banking items as well as loans and insurance to name just a couple of other products.
So, basically what you are looking at is a project whereby they run along the same lines as a bank but the only difference is that they deal in cryptocurrency, and primarily in their own token, as opposed to fiat currencies.
To delve a little bit deeper into what they do, we then see that they have registered themselves in the European Union as a platform where people are able to trade in virtual currencies against fiat currencies. Furthermore, that same registration has led to their virtual wallet being classified as a financial service which does then open up additional doors for them to explore.
Their entire platform is built upon Ethereum so they can make full use of the different security features that come with it as well as the stability of the platform in general. Furthermore, they state that individuals will be able to purchase Visa cards which they can then use to make payments using either fiat currencies or cryptocurrencies, but this part is not new and they are hardly the first to offer this particular service.
They also hope to offer a mobile banking system where individuals are also able to make international payments. By using the blockchain in this way, they note that it is going to reduce banking fees by around 90% while they can also then complete the transaction in literally a few seconds thanks to using this technology. If this is indeed the case, and technically it should be no problem, then this form of banking could prove to be popular within a sector of the market.
The advantages of using the new blockchain based Bank are mainly focused on the fact that it does open up more alternative ways to spend cryptocurrency offline. The fact that they are looking at including many of the top cryptocurrencies into the one Visa card will hopefully encourage more people to come over to their system and to create an account with them. The reduced fees, since banks are known to charge high fees, and the speed with which transactions can be completed will also be another huge advantage as they are two areas where people are annoyed at real banks, so this could very well be a better alternative.
When it comes to the ICO, they are only going to accept one cryptocurrency as payment, and that is ETH which is hardly a surprise. Also, they have incorporated the usual soft and hard cap with the soft cap being set at 250,000,000 EUR while the hard cap is 500,000,000 EUR which is a very high figure to try to attain and that does put some doubt into the minds of many.
During the ICO, they have also established an exchange rate which has been set at 1 WBB costing 0.0037 ETH and there is no mention of a minimum investment being required to take part. They will also have some 750,000,000 tokens made available for the ICO, so they are going to have to really push their marketing if they are to achieve their end goal and for this project to get off the ground.
The idea is certainly good, and everything is easy to put into place for it to function as a normal bank
Some additional research will be required in order to get a better idea as to whether or not this project has any potential to get off the ground and never mind to then grow as a company but that's the case with all ICOs.
Thanks to Internet based banks, people should not have any concerns about using a bank that is online and focuses on cryptocurrency so there should be little persuasion in getting people to come into the project. The fact that we could pay less fees and everything dealt with in an instant does remove one of the areas that causes people the most concern about banks where we feel as if they are ripping us off.
Overall, the project may well be worth investing in.
If they are indeed able to achieve the rather high softcap, then there is real potential for it to develop and generate a reasonable level of revenue.
