Australian millionaire Fred Schebesta is planning to launch a cryptocurrency bank to capitalize on immense business opportunities in the emerging virtual currency market. Schebesta, the co-founder of Finder.com.au, wants his bank to be the first of its kind in the country. The online comparison magnate also believes that cryptocurrencies will play a significant role in the global business process of the future.
Cryptocurrency banks are the next big goal
Instead of applying for an ADI (deposit-taking institution) license, Schebesta would prefer to collaborate with an existing bank. The head of Finder has recently acquired a significant stake Goldfields Money, a bank based in Western Australia. Commenting on his plans for a crypto-bank, Schebesta said:
I am [Goldfields Money] a $ 35 million market, a small business, but a bank, and the only bank with an ADI in the market. Western Australia. As encrypted adoption kicks off and gets bigger and bigger, people will accept [need] some services [like] of custody, cold storage, commitment, exchange and spending. And then the loan – the loan is what makes the fiat economy work [government-backed currency] and once the loan becomes really crucial, this is the thing that will basically lead this to another level.
Schebesta's plans disagree with the general banking sentiment towards the cryptocurrency industry in the country. Almost all the major underlying banks have taken rapid measures to prohibit cryptocurrency purchases through credit cards. According to Schebesta, these banks fear the market and have every reason to be.
Finder's co-founder illustrated the potential in the nascent crypto arena by comparing the gains of Deutsche Bank and Binance. The first with almost 100,000 employees made a profit of $ 146 million in the first quarter of 2018, while the second with 300 employees made profits of $ 200 million in the same period.
Cryptocurrency is the Future
Schebesta expects its bank crypt to be active and running in the next year and a half. Once operational, it will be the last of a series of incursions into the cryptocurrency arena. In September 2017, it launched a crypto-focused comparison platform that became a significant underwriter by outperforming other markets such as growth-based insurance and telecommunications.
In February 2018, Schebesta also launched HiveEX, an OTC (OTC)) cryptocurrency exchange platform. HiveX has achieved some success in the country, processing millions of dollars on a weekly basis. HiveX has also generated HiveSpend, an invoice payment platform that uses cryptocurrency.
Schebesta believes that virtual currencies are the future, saying:
They are about to open the way. Here's where all the big money is. We live in the future. This is what I'm doing. I think I'm a time traveler. I go forward five years in the future, I solve it, then I go back and try to take active steps to make it happen.