Bitcoin Global News (BGN)
July 12, 2018 -- ADVFN Crypto NewsWire -- By now, most of us that
have been following the Cryptocurrency space know that
Binance has moved to Malta. As of
today, it has been announced that they will be using their
investing wing to start the first decentralized bank that the world
has ever seen.
The project, which will be called
Founders Bank, had been estimated at a $155 million value even
before companies began investing in it.
Judging by an original article on
the subject by Coindesk, Founders Bank will essentially
be completely run by the
Blockchain. Investors will be able to continually invest in it
using Cryptocurrency tokens called “equity tokens,” which basically
equate to shares in the company.
Furthermore, just like Coinbase and
others which we have spoken about recently in the context of
becoming licensed, Founders Bank is also trying to do so in this
case, with the Malta government.
As of now, the biggest stumbling
block to its progress is exactly the fact that it is trying to be
licensed, not just by Malta, but apparently also by the European
Union, at large.
If, however, things do fall their
way, then this bank will launch as a customer owned, decentralized
entity, that therefore has no central control at all.
Despite Founders Bank’s lofty
hopes, however, it cannot be called fully decentralized since it is
effectively offering shares in its offering to companies like
Binance, therefore, creating a responsibility to these companies to
give them a return on their investment as it moves
forward.
While Binance and its
CEO, Changpeng Zhao seem clear that
the bank will succeed given Malta’s recent history as the “Blockchain island,” earning the
approval of regulators who are even partially aligned with the EU
is another hurdle entirely.
To do so would be akin to dropping
the first domino in the road towards the melding of the traditional
finance space with the Crypto space, given the radical banking
model being accepted by one of the biggest regulatory bodies in the
world.
Whatever the case, Founders Bank
may, at least, inspire other projects to push the envelope in that
direction.
By: BGN Editorial Staff
News:
Blockchain
Decentralized
Banking
Cryptocurrencies