There is a general trend in Europe of banks discarding services to the companies working in the blockchain and cryptocurrency sector. However, one bank is working its way out of this trend and planning to operate in completely opposite way.
SolarisBank has attained the license to open accounts for business in cryptocurrency sector.
According to its CEO, Roland Folz, businesses in the cryptocurrency sector are looking for licensed partners who can shorten the regulatory and technological gap present in the conventional banking. Keeping this in mind, the bank has come up with a financial management service, Blockchain Factory. The service is meant for companies providing blockchain and cryptocurrency solutions.
ICO companies providing blockchain-based products and services as a solution to a wide range of problems can open bank accounts at the banks and use them for conducting transactions in cryptocurrencies. The blockchain solutions like AnthemGold, which enables purchase and sale of precious metals; Bank52, which provides collaborative networking in the banking industry and Bitque, which facilitates adjustability in the decentralised world.
The inception of a specialised banking service for the cryptocurrency players has been regarded as a crucial step for the European economy, owing to the absence of institutions providing services to blockchain and cryptocurrency businesses.
“SolarisBank’s move is in the right direction and, in my opinion, other European banks will soon follow offering services for the Crypto world. Blockchain and Cryptocurrencies are a fundamental disruption for Banks, it is impossible to just avoid the issue with regulations or indifference. It is ‘irresponsible’ for banks to ignore the revolution, it is a question of Business. Customers will switch to the most innovative banks.” noted by Massimiliano Rijilo, the chief executive officer of Coinnect SA. Rijillo also expects that other banks would also take a move towards welcoming cryptocurrency businesses.
However, Jess Davis, CEO of Uberstate, feels that the move by the bank may not be warmly welcomed by other banks. However, the resistance won’t last for much time. Davis also emphasises upon the need to secure blockchains for its effective use in the future.
The past of the cryptocurrency transactions in Europe indicates that the bank would have to confront a lot of issues for implementing its Blockchain Factory package. The attitude of the banks is directed by the amount of the risk they see in holding such digital tokens. Banks find such digital tokens highly volatile and absence of specific framework to regulate such markets refrain them from providing services to such businesses.