Friday, March 8, 2019

Evolution XXX

Short the Banks
Long Cryptocurrencies

Today I received a call from the manager of the local agency of my bank.

" Dear Mr Martins unfortunately our central bank did not aprove to open a bank account for your new company, I am really sorry for this decision but there is nothing I can do about their decision and I hope you can understand. "

I reply: Ok I understand the decision of the bank but there is any reason in particular to that decision because I am being a good customer for all this time with you and never had a single problem with the bank so why?

" Like I said Mr Martins the bank just did not approved your request, I'm really sorry. "

So lets go back 3 days ago.

I have my new company registered in Luxembourg with all licenses that Luxembourgish government require to develop a business under the activity of software development.

Luxembourg government agencies know exactly what we are developing which by the way Luxembourg is very open to companies that work with blockchain solutions and with cryptocurrencies etc.

Since the beginning of the process of registering my new company I was very clear and transparent with Luxembourgish government agencies of what we gonna do: developing apps that provide services for the customers that allow the customer to pay with cryptocurrencies and also fiat currencies using their credit cards like Visa / Mastercard / American Express, etc by using an exchange built in the app exchanging fiat VS cryptocurrencies and after conversion payment done in cyrpto.

Luxembourg government agencies approved the registration of the company providing all the licenses and then one of last steps of the process of course is open your bank account for the company.

So back 3 days ago I was having the meeting with the manager of the local agency of the bank that I work with for some time, never had any problem with them and also them never had any problem with me as their private customer and while I am presenting all the documents of the company to start the process of opening the bank account and when the manager asks exactly what we gonna develop and I describe to him like I did with Luxembourgish government agencies being very clear and very transparent our roadmap he replies well this business area for us as a bank your company is classified in the category of some risk.

I ask then: 

What do you mean business of some risk? Because we are not asking for a line of credit to the bank and all the development is being funded privately, we use KYC ( Know Your Customer ) and AML ( Anti Money Laundry ) for our customers that gonna use our exchange for fiat vs crypto we comply with all legislation required from regulators so what do you mean exactly?

His answer: " Well all business activities are classified into several levels of risk, for example a company working on transportation it is one level, software companies another level etc but don't worry in 2 days our central bank will provide an answer to your request ".

To be honest I was really surprised with that answer because for me a customer which not has problems with a bank, is not asking for money, is just opening a normal current account should be evaluated for if it qualifies for have an account with the bank? That was something really new to me and I was not aware of.

So my only doubt now is they decided to not open the bank account because I was very explicit that we are a blockchain company developing decentralized payment solutions for our customers ( being a competitor of the bank basically ) and for some reason they prefer not being involved with companies that gonna disrupt their own business model?

Honestly I don't know and I think I will never gonna have the answer for that question but one thing I know next meeting I gonna have next week with another bank I will not lie never of course about what we do and gonna develop but I think I will not be so explicit about what we are doing!

So my friends one thing is certain: banks they are afraid, why?
I don't know exactly why because first they discredit saying Bitcoin does not have any value, then they made funny and now they are creating their centralized blockchains and coins like we saw lately for example with JP Morgan Coin.

So until next time peace, love and decentralization!!!