Cryptocurrency is a digital currency that does not rely on a central authority, such as the government, for regulation or to maintain it. With crypto entering the market in 2009, its journey has been full of ups and downs, as well as the stock market it trades in.
In the world of banking, many traditional institutions still fear implementing crypto into their services due to its unregulated nature. However, digital banks are changing the narrative. Launched in 2015 by German billionaire Michael Gastauer, Black Banx’s approach to crypto is turning heads in underdeveloped nations.
The crypto timeline
1983
In 1983, eCash was developed by American computer scientist, David Chaum. eCash was created to provide anonymity to people transferring money across the internet. It used cryptographic technology to produce blind signatures and keep transactions untraceable and secure.
Chaum later created DigiCash in 1989, which was based on his prior venture, eCash. After entering agreements with smaller financial institutions, Chaum’s inability to scale DigiCash to the market, and finding himself unable to secure contracts with larger banks ultimately led to the businesses’ downfall.
Whilst it did have its supporters as many demographics valued the concept of private payments, the market wasn’t yet ready to adopt the idea.
1998
Cryptocurrency as a term was officially adopted in 1998. During this time, computer engineer Wei Dai created B-money, an ‘anonymous, distributed electronic cash system’. At its core, this is what cryptocurrency came to be. The smallest amount of Ether – wei – is named after him.
2008
Little happened in the way of crypto from the late 90s and 2000s until the financial crash of 2008. The crisis affected all parts of the economy and customer loyalty in traditional banks plummeted as the value of traditional money decreased. Flaws in the financial system were exposed and the public began looking for an alternative approach to banking. It was here that the market became open to decentralised banking.
2009
… And along comes Bitcoin. Still the most known cryptocurrency, Bitcoin arrived on the scene in 2009, able to be bought and sold via the newly created platform, New Liberty Standard.
In the following few years competition arrived on the market with new algorithms, hoping to bank on the Bitcoin popularity. Bitcoin’s most notable competitor to date is Ethereum. Ethereum is able to “generate contracts and applications through blockchain.” Its software is decentralised as opposed to Bitcoin’s payment system being decentralised.
2019
Fast forward 10 years later and large financial institutions start to invest in cryptocurrency upon noticing its worth and popularity for certain demographics. Technology giant Microsoft launched a blockchain service, allowing users to submit transactions and contracts. Other big companies such as Amazon, JP Morgan and Walmart, all continued to buy into Ethereum.
2022
A crypto crash occurred last year, devaluing Bitcoin and Ethereum, as well as the collapse of notable crypto exchange, FTX. A look into the last decade of crypto shows it’s a difficult market to predict. Yet, underdeveloped economies are continuing to expand into decentralised payments.
Rise of crypto in developing economies
Crypto adoption is noticeable in countries with unstable economies and a wavering political climate. Currencies like Bitcoin provide more stability than weak FIAT (government-issued) currencies that are subject to inflation.
Cryptocurrencies also attach lower fees to international transactions, changeable value, and have established Bitcoin ATMs in many countries. El Salvador passed a law in 2021, making Bitcoin legal tender, equal to the US Dollar, the most popular currency at the time.
Black Banx
As a digital bank less than a decade old, Black Banx has amassed over 40 million customers in 180 countries. Offering a wide range of services including international transactions, budget tracking, a global debit card and interest bearing savings accounts, the company also has a large interest in crypto.
Providing services with the intent on being financially inclusive, Black Banx has implemented crypto into its platform. Clients are able to have full control over their assets as Black Banx connects its platform with the features of the crypto exchange. In turn, customers can use their crypto assets to pay third parties directly from the platform.
With Black Banx’s aim to be a financial institution open to everyone, simple account sign up and remote nature, it’s no surprise that the digital bank is making waves in underserved markets.