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.

BTC course analysis – China tears down the course

After rising to EUR 1,003.38 (USD 1,067.75), the share price plummeted to EUR 901.56 (USD 959.40). Since then it has been able to catch up slightly and stands at EUR 950.00 (USD 1,010.94).

How does the price fall affect the long-term forecast?

Throughout the week, the price followed the bullish trend and rose to 1,003.38 EUR (1,067.75 USD).
On February 9, the price plummeted to a minimum of EUR 901.56 (USD 959.40).
The price recovered slightly, so that it now stands at 950.00 EUR (1,010.94 USD).
Let’s go to the recapitulation: Like last month, the Bitcoin price reached values above 1,000 EUR – only to plunge dramatically into the basement. The underlying causes have already been reported here. The price was torn thereby again under the blue registered upper trend.

Since then, the price has recovered somewhat: It stands again at a smooth 950 EUR (1,010.94 USD) and thus again above EMA200. At the moment it seems to be above EMA100, but the bulls and bears are still fighting for it. The price was already above the EMA100 today, now it has to show how strongly it can serve as support.

After the MACD (second panel from above) plunged into extremely negative territory with the big price drop, it was able to scramble up again and is positive again since today. However, we will have to see if this bullish signal continues, as the MACD line (blue) is below the signal (orange), which suggests a slight price correction in the future.

With 55 the RSI (third panel from above) is bullish.

The Chaikin Oscillator (lower panel) is positive and thus confirms the bullish picture mediated by the RSI and partly the MACD.

The 60min chart therefore looks rather bullish from the price development. Nevertheless, the current battle for the EMA100 and the MACD line position is worrying.

The long-term price trend

There are two lines on the chart that intersected about January 23rd. The current upper of the two lines is the trend followed by the price between January 12th and February 9th, the other line is the long-term trend followed by the price since October. We see that the price on February 9 tested the support defined by the latter and the EMA200. In the meantime, the price has risen again and is even above the EMA100.

Also in the 240min chart, the indicators leave us with rather mixed feelings:

The MACD is below zero. Although the MACD line has recently been above the signal, it remains to be seen whether this will be sufficient to bring the MACD into positive territory. The RSI is at 50 and thus neutral. After all, the Chaikin oscillator is positive, but is currently falling.

Finally, let’s take a look at the 1D chart, which is slightly more hopeful:

The MACD is now clearly positive; both the MACD line and the signal are in positive territory. However, the MACD line is currently falling below the signal. The RSI is at 60 and is clearly bullish. Finally, the Chaikin oscillator is also positive and completes the bullish picture.

So, what are we going to do with these mixed signals? I am convinced that the current fight for the EMA100 on the first 60min chart is a very important fight that will determine the further price. If this should turn out positive, this would also set the signals on the 240min chart to a somewhat bullisher and thus reinforce the trend on the 1D chart.

Disclaimer: The price estimates presented on this page do not constitute recommendations to buy or sell. They are merely an analyst’s assessment.