If you were to tell people that Bitcoin, and by extension cryptocurrency, would grow to even compete directly with banks, they would not believe you. It was unlikely to think that something that was so small could eventually develop into something so big in a little over a decade.
And yet here we are. While regulators try desperately to keep up with the evolving crypto market, crypto has now made its debut in the banking sector. A quickly rising financial startup called BlockFi is aspiring to be cryptocurrency’s JPMorgan chase. And with the amount of popularity that it has been getting recently, it just might become achieve its ambitions.
They have already started offering interest-generating accounts, loans, and even credit cards just like a regular bank. However, BlockFi does not operate with regular currency. Instead, they work with cryptocurrencies and have found the perfect way to make it sustainable.
Not only have they found a way to make it sustainable, but they have also managed to translate cryptocurrencies into a banking format. Therefore, they are offering an alternative to traditional banking with the help of crypto.
A founder of BlockFi, Flori Marques, even commented on his firm and what they are capable of doing. He said that this is just the beginning for their company, as they still have a long way to go. As a founder of the company, he happens to be very confident in taking on traditional banks. And according to his claims, they have been doing quite well.
According to Marques, BlockFi has over 450,000 retail clients, who have the option to take out loans within minutes. Furthermore, these loans do not require any background or credit checks. He also claims to have 850 employees under his wing who help with various aspects of the company. Finally, he finished off his claim by saying that they have over $10 billion worth of assets in the company. With the company opening its doors in 2017, these are bold claims to be making.
While crypto are certainly very happy to see a crypto banking alternative, congress and regulatory bodies would disagree. In fact, for both parties, crypto-making moves in the banking sector is a cause for alarm. Since crypto is affecting financial markets at such a rapid pace, regulators are struggling to keep up. Due to their sluggish pace, financial markets and consumers are quite vulnerable.
Banking regulatory boards and the Federal Reserve have their top officials working in catching up with the crypto market. Dubbed the “Crypto Sprint, these officials are looking into ways that they can better understand the market. And by extension help reduce the issues that come with no regulation.