Arba CEO Shares How Bitcoin can Inspire the Creation of a Cryptocurrency Bank

Billy Barhydt believes that it is possible to circumvent the existing regulations and create a cryptocurrency bank. Billy formerly worked at the CIA as a cryptography expert and is the founder of the Abra digital currency investment firm.

According to Billy, he has accrued vast experience throughout his career in the technology, intelligence and financial services industries. He told Anthony Pompliano on the Off the Chain show that he plans to use this knowledge to create a novel banking model based on virtual currencies.

Indeed, Billy’s knowledge of the financial services industry is expansive. During his time at Goldman Sachs, he was a senior analyst in the department of fixed income research. Also, he headed banking and online business projects when he was working at Netscape. Billy got acquainted with banking regulations at Dodd-Frank where he participated in the drafting of remittance laws.

Now, Barhydt wants to use digital currencies to disrupt the banking sector. The concept is of this innovative model is based upon treating Bitcoin as programmable money. In this regard, Billy explained how his Abra exchange platform converts a client’s fiat deposit into their desired cryptocurrency. The rather intricate process involves a multisig contacts that pit Bitcoin against Ripple. For convenience purpose, the entire process is conducted in the background.

In due course, Billy revealed that Abra intends to introduce a cryptocurrency bank. A crypto bank uses a model that is entirely different from the one used by conventional financial institutions. Instead of a centralized approach, this new bank will grant customers full control over their money. Notably, users can use this platform without having experience in the cryptocurrency markets.

The standout feature of the crypto banking model is that it is not regulated by oversight authorities such as the SEC and CFTC. This is because the bank does not store client assets. Also, the bank will not issue security-based tokens. Rather, the system will be based on smart contracts that are rolled over after a pre-specified timeframe.

Skeptics have been arguing that the aforementioned smart contracts are similar to contracts for differences (CFDs). It is worth noting that CFDs are prohibited in the United States. Concerning this, Billy acknowledged that his smart contracts are actually similar to CFDs, with the exception being that they are not executed using the European approach. Furthermore, Abra acts as the counterparty to all of the bank’s transactions, allowing the institution to circumvent the anti-CFD regulations. Fundamentally, the crypto bank is accessible from all over the world is immune to hacking thefts because it does not hold funds.

In conclusion, Billy mentioned that he does not expect regulators to go after crypto bank's customers because cryptographic keys are not regulated. If actualized, Billy is confident that his creation cam poses real competition to conventional banks.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Avatar
Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,274FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today