The Swiss startup Liquineq believes it can stop banking by processing transactions securely and securely in seconds using blockchain.
But its purpose is not to replace banks. Instead, Liquineq wants to use local banking partners to manage solutions, with local currency and funds held by the partner bank.
"Liquineq allows financial institutions to transit, with virtually no risk and capital investment, high principal-based capital and business model of operating expenses to an ultra-low-cost-to-go business model that is Final goal of the Liquineq blockchain architecture, "declared CEO Moti Birger.
The company claims to be able to manage multiple currencies contained in the same portfolio and still comply with anti-money laundering regulations and "know your customers" while providing advanced security.
"We are performing end-to-end banking transactions that comply with multi-level blockchain regulations without interrupting everything as it is today," said Ari Birger, head of Liquineq's alliances, in an interview with VentureBeat. "We increase revenue for banks and move to automated compliance without the need for capital expenditures."
Customers can easily create and fund an account with a bank using Liquineq in just a few minutes by downloading the Liquineq mobile wallet and answering some questions. Debit cards can also be linked to the wallet.
In addition, the company can handle 10,000 transactions per second before implementing sharding, which will speed up the process to 50,000 transactions per second. Birger added that with the service distributed in 200 countries, this will increase transactions per second up to a few million.
"I expect Liquineq AG, with the support of their consultants who have extensive experience in Visa, PayPal and the Federal Reserve, to drive radical changes in the way payments and banking work around the world," he said the advisor to Liquineq Gordon Werkema, former chief operating officer and director of payment strategy at the Federal Reserve of Chicago, in a statement.