The European Crypto Bank is a new project that is trying to solve a problem that faces the entire cryptocurrency space: how to deal with an unfriendly financial sector. Many cryptocurrency investors have to move their assets back to FIAT at some point, especially to pay taxes. Because the current mainstream financial institutions are unfriendly to cryptocurrency users, moving back into FIAT can be an extremely difficult process. The ECB offers traditional banking services as well as tax reporting for several European countries. Let’s take a closer look at the ECB whitepaper to determine how the ECB plans to make its vision a reality.
What Problem Is The ECB Solving?
It is extremely hard for new cryptocurrency users to navigate the market. The traditional banking institutions are unfriendly, and the constant evolution of the market can be frustrating even for long-tenured experts. The ECB will help entry-level users figure out how cryptocurrency markets work, and how they can take advantage of these new and exciting opportunities. It will help European users with regulatory compliance and paying taxes. Ultimately, if the cryptocurrency market can comply with European laws and regulations, the entire market stands a greater chance of acceptance. And with acceptance comes adoption and higher prices!
Which Markets Will ECB Target? Who Are Their Competitors?
The ECB is currently focused on the European market and is opening offices in Paris, London, and Milan. The platform expects to pick up 5,000 new clients by December of 2018, and 11,000 new clients by December of 2019. The whitepaper acknowledges that the ECB will have several prominent competitors. These competitors include Coinbase, Shapeshift, Gemini, Livecoin, and Gemini. In order to surpass these competitors, ECB will need to provide superior service and have a more comprehensive platform for Europeans. The competitors are taking a broader, more global view, which allows the ECB an opportunity to make relationships with European users.
Why Will Users Choose ECB?
With so many different options in the financial industry, why will users choose ECB? Well, first of all, traditional financial players are unfriendly to crypto users. So cryptocurrency users will more likely to choose a financial institution with a focus on crypto. Second, the ECB is targeting European users, instead of taking a global view of the market, like many of its crypto-based competitors. This allows the ECB to meet the specific needs of its European users, while its competitors will have to also worry about the needs of users in Asia and the Americas. The ECB will offer a suite of services that typically are found on several different platforms, including financial analysis and advice, a trading exchange, AML & compliance tax reporting, tax advisories, and more.
The ECB’s goal is to become a fully regulated cryptocurrency bank. The ECB has already established several successful awareness campaigns (https://bountyhive.io/join/European%20Crypto%20Bank). There is a wide range of cryptocurrency enthusiasts and financial players who are watching the development of the ECB ICO. If the ECB is successful, there will likely be more financial institutions who attempt to connect to the cryptocurrency market in a similar manner.
Written by: liveheart
BountyHive ID: liveheart