SolarisBank builds bridge between banking and Bitcoin evolution

The Blockchain Factory promises to be the technological and regulatory bridge between the banking and blockchain world. In addition, it wants to be a specialized infrastructure partner with a banking license for crypto currency and blockchain companies. With the Blockchain Factory, SolarisBank aims to further advance the vision of decentralized and contextual banking.

SolarisBank, the first banking platform with a full banking license, will launch its “solarisBank Blockchain Factory” on 28 June 2018. The Berlin-based technology company is thus expanding its offering and creating a technological and regulatory bridge between the banking and blockchain worlds. solarisBank will thus become a specialist infrastructure provider for companies in the crypto-currency and blockchain industry.

Roland Folz, CEO of solarisBank, is confident about the Bitcoin evolution:

“solarisBank has been enabling contextual banking for over two years – modern financial services are integrated into companies’ existing offerings via interfaces (APIs) and made available to customers when and where they need them. Offers in the Bitcoin evolution blockchain and Bitcoin evolution area through the ‘solarisBank Blockchain Factory’ are the next strategic step. There is great demand from the Blockchain world for a licensed partner who can provide the technological and regulatory link to traditional banking – as a technology company with a banking license we are the natural partner.

According to the press release, solarisBank intends to use Blockchain Factory to offer banking services to companies whose business is based directly or indirectly on crypto currencies and Blockchain technology. These include, for example, the “Blockchain Company Account” for the banking transactions of Blockchain companies.

In addition, services are to be made available for global trading centres for crypto currencies in order to facilitate the purchase and sale of fiat currencies, for example via solarisBank’s “Automated Trust Account”, an automated trust account for crypto currency marketplaces.

To this end, it is working together with vPE Bank: Together, solarisBank and vPE intend to offer institutional trading of crypto currencies. Other corporate customers of solarisBank are currently integrating additional services in the area of digital banking and debit cards for blockchain companies. For example, the company promises to combine crypto currency wallets and bank accounts in a single offering.

Hybrid future of the Fiat and Bitcoin evolution world through SolarisBank

Peter Grosskopf, CTO of solarisBank, predicts a hybrid future for Blockchain and Bitcoin evolution: “The Fiat world will not dissolve. We are moving towards a hybrid future in which the blockchain world still has to prove itself. At solarisBank, we see the disruptive power of the business models and want to help shape the future of this industry. It has always been the role of banks to keep their customers’ assets in trust. Even in the age of decentralization driven by Bitcoin evolution technology, banks must continue to play this role. We are providing the infrastructure to link traditional banking with modern digital offerings.”

Founded in March 2016, solarisBank was one of the first financial technology companies with a full banking licence. Since then, the company has established its “Banking as a Platform” concept internationally. Blockchain and crypto currency offerings from the “solarisBank Blockchain Factory” are the next strategic step. In addition to the cooperation with vPE Bank, further partnerships are already in the implementation process and are expected to be launched in the course of the year.

Why Bitcoin evolution allegedly has a hard time in Nigeria

Money transfer service providers are very susceptible to disruption from new technologies. For many, the time has come for Bitcoin and other digital currencies to replace existing money transfer services. However, Money Gram, one of the largest money transfer providers alongside Western Union, recently confirmed that it wants to stick to its business model in Nigeria.

Unfortunately, it is not easy to get a foot in the money transfer business of many African countries. In Nigeria, companies must officially obtain a license in order to work as a money transfer service provider. The requirements for this license are set by the Nigerian Central Bank and were only recently made more difficult.

Money Gram’s Africa Business Director comments on the company’s Bitcoin evolution:

“Lagos was chosen as Money Gram’s headquarters for English-speaking business operations in Africa. We have invested several million US dollars to improve our money transfer service. We know the needs of our clients and try to meet them in the best possible Bitcoin evolution. For example, our ‘Cash to Bank Account Service’ offers Nigerians the opportunity to deposit funds directly into the Bitcoin evolution account of their choice”.

The business with money transfer service providers is very strong in Nigeria and provides the Nigerian economy with around 21 billion US dollars each year. Nigeria is responsible for 60% of the total money transfer volume through service providers such as Money Gram in sub-Saharan Africa. A large part of the money comes from the USA and Great Britain.

As long as the Nigerian central bank does not issue licenses for Bitcoin service providers, it will be difficult for Bitcoin and other digital currencies to replace the outdated business model of money transfer service providers.

Comment by Sven Wagenknecht:

Even though, understandably, the Nigerian central bank and the money transfer service providers Bitcoin services are a thorn in the side, there is no reason to be concerned. The reasons for expanding the use of digital currencies in Africa are much stronger than the innovation-hostile self-interests of the above-mentioned players.

The business model of money transfer service providers, such as Money Gram and Western Union, is completely outdated and very consumer-unfriendly due to its enormous fees. Nevertheless, many people in developing countries are dependent on their services because they do not have their own bank account and are therefore forced to use the services and pay usurious fees.

Bitcoin and Co., on the other hand, mean that there is no longer any need for a bank account, so that people can transfer money without intermediaries or fiduciaries, such as money transfer service providers. With the help of digital currencies, over 2 billion people in the world who do not yet have a bank account have access to financial services. It is therefore only a matter of time before the business model of money transfer service providers can no longer withstand the pressure of digital and decentralised financial services.

In Nigeria in particular, the problem of a lack of licensing on the part of the central bank is negligible. Approximately 80% of all people in Nigeria work in the so-called informal sector (black market). Here there is neither state regulation nor state taxation. It is therefore only logical to resort to a non-state currency, i.e. a digital currency.