In the last decade or so, cryptocurrency has evolved from an obscure monetary asset to an immensely popular investment vehicle right before experiencing its first significant drop in value in the last several months thanks to increasing interest rates.
A form of digital currency secured through cryptography and computer networks, cryptocurrencies continue to not be overseen by traditional governing bodies, like a national or central bank, with transactions performed while maintaining the semi-anonymity of buyers and sellers.
In short, cryptocurrencies are secured by cryptographic systems and can be used to make safe online transactions without any mediators. By using cryptocurrency, it becomes easy for customers to transfer money without any involvement of banks and other financial institutions.
It is this ease which makes it an ideal match for Black Banx, a Toronto-based global digital banking company founded by German billionaire Michael Gastauer with the aim of unlocking a borderless financial system for everyone where money can flow freely.
Wildly popular, cryptocurrency’s benefits go beyond its ease of use, and are additional reasons why it’s a key currency for Black Banx.
Transactional Speed
When one wishes to transfer money in, for instance, the United States, there are several ways to do so. Cryptocurrency transactions are arguably among the quickest, often done in a matter of minutes which make it appealing to many. In comparison, most traditional financial institutions in the U.S. still settle most transactions in around three to five days, while wire transfers specifically take at least 24 hours.
Black Banx has built its system in a similar fashion, as it aims to make international banking essentially comparable to local banking. With that, the company offers private and business accounts to customers in over 180 countries and featuring not only 28 FIAT currencies, but also two cryptocurrencies (and a third on the horizon.)
Cost Effective Transactions
Cryptocurrencies are also helpful in the global transfer of funds. At present, the transactional cost with the help of cryptocurrency is already minimal, and in many cases zero. It is negligible as it eliminates the need for third parties to confirm transactions. Conversely, according to the World Bank, the average cost to send money overseas via traditional banking is an estimated 6% of the amount. This means paying around $60 for every $1000 sent.
This had been among the key reasons why Black Banx began offering cryptocurrencies as a deposit method to its customers as early as in 2016. While many still had apprehensions towards cryptocurrencies at the time, the group wanted to ensure that every option that can lower the cost of banking to and from any country was readily available to its customers. When it started out, FIAT transactions between Black Banx accounts had already been free of charge, and the addition of cryptocurrency offered more ways for users to transact at no cost.
Accessibility
Speaking of accessibility, those interested in crypto require only a computer or a smartphone with an internet connection to use cryptocurrency. Not only is it comparatively faster and easier compared to old financial institutions, it also allows unbanked individuals to effortlessly make transactions or send funds to someone.
It is this accessibility that makes crypto an ideal currency for Black Banx. Since the company’s official launch to the public, it has operated as a borderless digital bank that is inclusive sans the barriers of traditional banks. It offers an easy sign-up process requiring just a photo ID, ensuring clients aren’t turned away based on paperwork, income, or location. With the introduction of cryptocurrency into its services in 2016, accessibility of banking has been eased even further for Black Banx customers.
Diversity
It has long been documented how investing in cryptocurrency can and is profitable. Like with any other investment vehicle, it can serve as a means for many to diversify their investments with the goal of, of course, expanding their wealth. The key difference from other financial products? Cryptocurrency can also be beneficial to the unbanked and underbanked.
Black Banx maintains a serious commitment to furthering financial inclusivity, and cryptocurrency has become one of the financial tools it has been able to offer the unbanked/underbanked and increase their economic prospects. Black Banx customers have long been able to trade and transact using BTC (Bitcoin) and ETH (Ethereum), two of the largest cryptocurrencies in the world. Soon, Black Banx will add the third, Tether (USDT), to its wide range of digital currencies in a strategic move to further expand its cryptocurrency offerings.
