The most recent Global State of Crypto Report says that 41% of Indonesians own cryptocurrency. This is because most Indonesians don’t have a bank account yet. Even the data from Chainalysis shows that people from more and more countries are interested in cryptocurrency exchange development services, which is driving the development of digital banking apps.
Now think about how many people would use crypto if it was built into users’ banking apps. A crypto bank does this. A crypto bank could become a financial tool for the next generation. Just like PayPal, it could start a revolution. When you make your own crypto bank, it works just like a regular bank:
- Interest
- Payments
- Savings
- On top of that, it becomes their way to invest in cryptocurrencies.
Let’s define what exactly a Crypto Bank is!
A crypto bank is a digital banking app that gives its users access to financial services, lifestyle perks, rewards, and the chance to buy crypto. The bank can have its own token that can be used to pay service fees for the different services a user uses, and the same token can be traded freely on different crypto exchanges. Users can also get rewards for reaching certain goals. For example, when they complete a certain number of transactions on the crypto banking app, they can get a certain token as a reward.
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What is better about a Crypto Bank than a Regular Bank?
Since COVID-19 began, we have seen inflation around the world, economic crises, and more. The Federal Reserve has been printing money and giving out relief checks, which is hurting the global economy. During the war between Russia and Ukraine, the world economy got worse. This showed that the traditional financial system is not enough. Now, more people want to invest in crypto to make more money. Because of this, a lot of companies that offer financial services are now putting money into making digital banking apps.
What benefits does a Crypto bank have to offer?
Crypto banks make it easy to do business
The people who use crypto banks make sure that transactions are easy. So that they can do this, they work with licensed banks to give their users IBAN accounts and debit cards. With these debit cards, it’s easy for the user to pay at different places of business.
From Fiat currency to Cryptocurrency
When you make your own crypto bank, you can accept deposits in USD, EUR, GBP, or INR through bank transfers. Then, as a crypto bank, you can let your customers turn their fiat money into stablecoins like USDT. The users can then use their USDT balance to buy things like Bitcoin, Ethereum, Polkadot, XRP, and more. It should be easy for anyone to do.
APY on Investments
APYs for fixed-term investments can be given by crypto banks. Aside from that, it gives boost rewards to users based on their membership levels. Users must keep their assets in their accounts for at least a certain amount of time. The longer they keep their assets locked up, the more money they make.
If you want to get more people to use your site, you can also offer APYs with no lock-up periods, where users get rewards for putting in at least a certain amount.
How to make sure that your Crypto Bank is safe enough for users?
Digital banking app development involves money, which is why security is the most important thing for these apps. We need a comprehensive approach to cyber security, and the following steps are a good idea:
- All of the transactions that involve money must be checked to make sure that no fraudulent ones go through.
- If the amount of the transaction is more than a certain amount, the crypto bank’s operations team must manually approve the transaction.
- Any kind of hack must not be able to get into the personal information of users.
- To protect users’ assets, a multi-layer security matrix that usually involves the computation of signatures from more than one party must be used.
- To protect users’ money, the process of verifying the funding address must be automated and changed often.
Bottom Line
In simple terms, a crypto bank is a place where you can manage your virtual assets and use traditional banking services at the same time. It should be easy to transfer assets and keep track of them.