Contact:Cecilia Vichi
Phone: 1(833)930-2161
Email:info@konzortia.capital
Although banking services have come a long way since the days of paper cash only, giving us innovations like credit and debit cards, they seem to be falling stagnant when it comes to implementing the latest technologies in financial services. In particularly, the notion that distributed ledger technologies (DLT) are starting to pose a threat to traditional banking seems ever more prominent. With distributed ledgers not only have the potential of making transactions more secure, but also of eliminating hassles like bank chains for abroad transactions, third party intermediaries and excessive fees.
With how big and powerful current traditional banks have become, it is not likely that they will be entirely replaced by decentralized services any time soon. Nonetheless, they’re bound to lose some of that power as more people realize that there are better, faster, simpler and cheaper alternatives, which can be found through a simple internet browse in their phones. Ultimately, banks are going to have to adapt to new technologies and give wat to innovation. Today, the question isn’t whether distributed ledgers are going to be the future of finances, but why distributed ledgers haven’t been widely adopted in the financial system.
There are many reasons for that. For one, many financial actors actually benefit from the financial system being less efficient, as they’re the ones profiting from excessive fees and intermediation. For two, the most well-known application of distributed ledger technologies so far has been cryptocurrencies. Although cryptocurrencies represent an interesting innovation, they suffer many problems which prevent them from being anything more than an instrument of financial speculation. Most of them are too volatile to be widely use as actual currencies and lack the liquidity to be reliable for that purpose, not to mention the security and regulative issues related to the lack of transparency.
Despite all of this, there is a promising startup banking service that could mean the step towards a true wide implementation of digital ledger technologies. Novabank is developing an online banking platform which is intended to be inclusive enough to bank the unbanked population of the world while also being used by small and large businesses alike. For this purpose, they’re developing a new type of digital currency called Koura, which will be backed by fiat currencies and pegged to their value, making it easier for people to hold multi-currency accounts and make global transferences. The DLT will make transactions faster, easier and more secure, while eliminating the need for intermediation and significantly lowering costs.
Novabank is launching its MVP in the upcoming months and will be the first platform I the Konzortia Capital consortium to become operative. Konzortia Capital is a FinTech consortium currently developing various technological financial service platforms that are expected to change the world of finances in its entirety. They aim to create a DLT financial ecosystem for the whole financial industry to operate, from small businesses and individuals to big brokers and regulators. If you wish to find out more about this project or are interested in becoming a part of it as an investor, you may visit konzortiacapital.com or konzortia.capital.
