New York, New York — Banking today is insufficient. It simply cannot keep up with the speed of modern business. A shipping container only takes 2 weeks to arrive in Berlin via rail, but payment for it can take up to a month. Amazon is able to deliver packages to customers same day, but no bank can manage that with an electronic wire transfer. Banks have also dramatically reduced their international trade facilitation and SME lending as a result of the Basel III rules, which require banks to maintain high minimum capital requirements. And it’s not just speed and volume that are problematic, but also cost. Cross-border payment fees have increased two-fold since multinational companies moved away from commercial banking following the financial crisis and set up their own banks.
Proponents of cryptocurrency have long claimed Bitcoin could solve these problems. They claim it has a 10-minute transaction settlement time frame, but this only true when it is not overloaded. Moreover, Bitcoin is seldom accepted at any retail establishments. It also must compete with various national fiat currencies, which are far less volatile than Bitcoin. Most crypto exchanges do not even offer cryptocurrency pairs against national fiat currencies.
In order to make the most of international trade, traditional banking needs cryptocurrency. However, in order to be truly effective, cryptocurrency needs to be seamlessly integrated with the conventional world of fiat currencies.
CoinArmy solves these problems
Improving cross-currency payments, whether they are used to invest in digital assets or for international trade, is critical to growing the global economy — especially in emerging markets. There are many layers to international payments, including currency conversion (FX), credit, transaction guarantee, correspondent banking and settlement. Any solution must address all these components at the same time.
One company stands out in its ambition to address all these challenges to make cross-currency transactions fast and convenient for any type of client. CoinArmy marries low-latency FX matching technology, blockchain settlement, regulatory licenses, solid banking relationships, and an aggressively expanding business model to create the solution individuals and SMEs have been craving: the ability to trade digital currencies, as well as to send and receive payments.
CoinArmy has developed a solution for every component of cross-border payments. Blockchain settlement is the foundation upon which all other technologies are built. CoinArmy takes it a step further and digitizes national fiat currencies to enable trade between any two currencies. This creates unprecedented trade opportunities between Europe and Asia, where the majority of currencies are non-deliverable.
Currently, for example, a Turkish company has to buy U.S. dollars with their Turkish Lira, in order to pay their Chinese counterpart, who needs Chinese Renminbi. In the CoinArmy world, the Turkish company will purchase directly digital renminbi with Turkish lira and send the Chinese renminbi to their partner within seconds. In emerging markets, where bank fees on these types of transactions are excessive, eliminating steps in the current process means billions in savings. With CoinArmy, any digital token can be linked with national fiat tokens, creating a seamless connection between cryptocurrency and fiat.
What are the challenges to such an ambitious undertaking?
“The day only has 24 hours and we often need more hours, to address the great client demand in cross border payments. Interestingly, regulatory licenses, have been an accelerator for us, unlike what popular believes are. The next step of client onboarding could also be a major challenge, because of the roaring demand for CoinArmy service. China is building the One Belt One Road, CoinArmy is building the payment infrastructure to support it. ” Erol User Chairman of Coinarmy quoted.
CoinArmy is a premier trading and financial technology company that has built a digital asset exchange focused on the needs of professional traders and digital currency experts. CoinArmy is dedicated to making digital currency trading accessible, fast and totally secure. CoinArmy also offers blockchain consultancy services.
CoinArmy’s vision is to build the next generation digital asset exchange for traders of every skill level with the aim of making digital currency trading accessible to everyone. CoinArmy is devoted to enhancing our customers’ trading experiences with quick trade execution, fair pricing, world-class customer service, endless improvement and limitless creativity.
CoinArmy is member of European Union Blockchain Observatory and Forum.
With Ms Mariya Gabriel the European Commissioner for Digital Economy and Society at CEE Block in Sofia 2018