An article was written by an independent analyst, Aubrey Hansen for FX Street asks the simple question of ‘why is it so hard to bank crypto?’
Hansen describes herself as a ‘digital nomad’ and is constantly travelling between countries all over the world, but having access to cash and banking services is always a concern. Looking at modern banking, which has jumped forward in advancements, traveller’s cheques are a thing of the past and as Hansen says, she has to organise her foreign currency before she travels anywhere. Nevertheless, fees for banking just get in the way in today’s world and adds up over time to become a significant drain on the finances.
Moreover, the issue of taxes shows a completely new issue which continues to confuse ‘digital nomads’ all around the world.
“If you bank in a certain country but don’t live there, do you pay tax there? If you don’t live in any country but get paid by businesses in various countries, where do you pay your tax? It’s a difficult question that more people ask daily as the digital nomad community grows.”
With banking services which are based on the blockchain, they might be able to provide solutions for a multiple of these issues by showing a whole new different online service which isn’t tied to a specific country like the Dominican Republic or the Cayman Islands, these banks can reduce taxes which aren’t necessary for their customers.
Hensen then goes onto talk about withdrawing cash and that your card is charged at certain services which can be made available to clients through the issuance of MasterCard or Visa debit cards which, in theory, should bring lower fees than those associated with traditional “brick and mortar banks”.
Systems based on blockchain can also be implemented with crypto services which would provide a much-needed service in for the number of clients which is ever growing that are now paid in Bitcoin or similar digital assets.
“EQIBank is one example of such a system. The new digital bank is the world’s first licensed and fully regulated offshore bank of it’s kind, providing both private and corporate banking services as well as a cryptocurrency exchange and loan service”
Hansen finishes off by saying that EQIBank is something that should be a no-brainer for travellers. Reduced fees and simple taxes could save them time and money.
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