To bank today’s crypto unbankables require new systems and new banking infrastructure. The increased interest of mainstream corporations in digital assets marks a watershed moment for this new asset class. Ushering in a new era of legitimacy for digital currencies and the blockchain technology that underpins them.
In an interview with Karen Webster, BCB Group CEO Oliver von Landsberg-Sadie said that turning that curiosity into widespread acceptance. Needed a “pleasant alternative” to traditional banking in the form of a “simple, personal, well-informed. As well as regulated service that can bank the crypto “unbankable.”
It’s a lesson von Landsberg-Sadie and his co-founder learned the hard way.
BCB Group began as a firm that facilitated the purchase and sale of bitcoin on behalf of high-net-worth people, families, offices, and corporations. While serving the market, the company discovered the real pain points in the crypto industry. Were settling bitcoin sales rather than the cryptocurrency’s liquidity. The mere process of transporting money from point A to point B was extraordinarily difficult, according to von Landsberg-Sadie. Because most correspondent banking networks flatly rejected any crypto-tainted transfers.
He explained that the problem is in the banking layer providing simple transaction banking services to an unbankable
Next was the company’s plan to build a crypto-centric financial infrastructure. BCB connects businesses to the financial exchange and crypto markets at scale in the UK and EU. Von Landsberg-Sadie said BCB is the leading provider of digital asset business accounts and trading services.
Despite Regulatory Constraints, Realizing Potential
Von Landsberg-Sadie identified three barriers to widespread adoption of crypto as a currency, not just a trading asset.
The first is a lack of understanding by the average consumer who is just learning about crypto. Closing the education gap will take time, von Landsberg-Sadie says.
The second is its lack of ubiquity.
We’ll see more in today’s crypto adoption in the global merchant network once that last mile is crossed, he predicts. “I see a future where the de-facto currency is cryptographic, but that’s a decade or two away.”
The third is regulation. He said each country seems to be running at its own pace. As for Switzerland, it has been proactive in defining and creating a progressive, productive environment for the complete shift to cryptocurrency. Although businesses in the crypto space motivated, the political framework is still grappling with its technicalities, he said.
Congress’s Hastily Enacted Crypto and Big Tech Regulations will be Horrible
The United Kingdom and Europe will have it more difficult now that they are leaving the European Union. Companies based in the UK are now required to seek EU-wide equivalent licenses.
“I’ve lately heard people suggest that the United Kingdom. Isn’t a good area to establish a crypto firm, and I completely disagree. “You can produce value as swiftly as, if not faster than that. In other regions, if you cooperate closely with the regulator and ask permission first rather than forgiveness later.” Von Landsberg-Sadie said.
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The UK regulators have created a level of scrutiny associated with licensing today’s crypto based businesses. To satisfy UK regulators that the unbankable are ready to banked, BCB had to integrate all traditional KYC and AML controls. As well as transaction monitoring tools, into its platform. Blockchain’s massive traceability offers transparency. Von Landsberg-Sadie says it’s much easier to control money laundering.
“I think it’s a whack-a-mole game because everything internet-based, so it will survive,” he said. “Regulators will have to balance supporting business growth with protecting consumers and maintaining efficiency.”
Keeping Venture Capitalists’ Trust
Von Landsberg-Sadie believes blockchain technology can benefit businesses and people globally. The evidence is massive VC investments in crypto-related ventures.
Over the last few years, crypto technology has shown promise. In such ways, they help to solve some of the most difficult problems in payments. Like sending money across borders quickly and cheaply. These and other innovations keep VCs interested.
“Bitcoin is no longer the market’s health proxy,” he said. “VC funding is a huge indicator of market growth.”
The payments industry has long been concerned about the lack of interoperability in rails and networks for international transactions. Impacts VCs’ interest in and confidence in the company. Cryptocurrency must widely acknowledged and accessible in order to protect this expansion.
With local payment rails, networks like the UK’s FPS and the US’ ACH can operate immediately in real time. To be linked together by a common payment rail, such as SWIFT. Crypto-equivalence can be defined as a global payment network that connects SWIFT and local payment rails, for example.
Eventually, von Landsberg-Sadie sees an interconnected global crypto network.