The European Crypto Bank platform was established for cryptocurrency users as a new way to handle banking, taxes, and regulatory compliance. As we all know, the financial industry has long had a negative view of cryptocurrencies. These traditional financial institutions have made it extremely difficult for users to navigate the cryptocurrency space. There are specific instances when crypto users will need to convert their holdings back into FIAT. One of those instances is when a user needs to pay taxes. But due to the adversarial role played by legacy financial institutions, sometimes it can be extremely difficult for users to move their holdings back into FIAT. The old banking industry is ready for disruption. It is slow, inefficient, and unable to meet the needs of users who want to diversify into cryptocurrency assets.
The Banking Industry Has Been Hostile To Cryptocurrency Enthusiasts
One of the biggest reasons why the banking industry needs disruption is its hostility to cryptocurrency holders. There have been plenty of instances where cryptocurrency holders found their traditional banking accounts frozen or closed on the whims of banking executives. There have been instances of users having their cryptocurrency purchase transactions reversed when they attempted to send FIAT to an exchange like Coinbase. Because of this hostility, there is a large population of cryptocurrency users who are ready to move a new banking alternative. This is the opportunity that the ECB has.
It Can Be Difficult To Convert Crypto Into Traditional Assets For Taxes
Even with a traditional bank that is relatively friendly to crypto, it can be hard to convert crypto into traditional assets. Part of that is a regulatory compliance problem—it can be hard to figure out how much a crypto user owes and on what basis. The ECB will contain an entire tax platform to help users navigate tax season. Users will be able to consult with the ECB to determine how much they owe in taxes and why. And at the end of the process, users can use the ECB to easily convert their crypto holdings into FIAT for transfer to their local tax authority.
Opening Up Cryptocurrency For European Markets
Right now, regulatory issues and tax problems are one of the biggest problems in cryptocurrency markets. Until these problems are solved, mass-adoption will likely remain elusive. Fortunately, the ECB has a very good chance at helping to fix these problems in the European market. Over the years, the ECB expects to expand from Paris, London, and Milan to other major cities in Europe. With strong demand in Europe and a successful service, the platform could even expand beyond Europe at some point.
The ECB has already successfully run a campaign (https://bountyhive.io/join/European%20Crypto%20Bank) to increase awareness of the platform. As per the whitepaper, the ECB expects to become a fully regulated crypto bank in Europe within four years. This will allow users a pathway to convert their crypto holdings into traditional assets. The ECB eventually wants to allow users to convert their crypto holdings into equities, bonds, and real estate in addition to being able to convert into FIAT currencies. This will make the ECB one of the most dynamic financial institutions in the world.
Written by: liveheart
BountyHive ID: liveheart