Simplex CEO: Crypto Could Help Improve, Not Replace, Banking Efficiencies
The rise of cryptocurrency has forced many both within and outside the crypto industry to reconsider the current financial systems that have existed in the past and whether they can continue to exist within the future.
Even when cryptos gained acceptance and ICOs became all the range, there were calls by those within the industry for regulatory bodies to put proper laws in place. However many of these bodies did not take cryptocurrency as seriously as they should and were not eager to put in the laws required for the industry.
All that is changing as we are seeing a new wave of institutional adoption of cryptocurrency and because large institutions are embracing cryptocurrency, these regulatory bodies find themselves with no choice but to also give the industry attention.
This was greatly evidenced this week when Facebook released a white paper for their much-anticipated Libra cryptocurrency. Within days of the release of the token, world leaders were already making plans to meet with the management of Facebook to discuss what the token would mean for global financial systems with the US Senate already scheduling a hearing with Facebook over the matter.
This has once again reignited discussions of whether cryptocurrency will work alongside the modern financial institutions or replace them altogether.
Now Nimrod Lehavi, the co-founder and CEO of simplex, has spoken to Finance Magnates about his views on the regulatory stance towards cryptocurrency and what the new token will mean for the future of the financial world.
During the interview, he stated that he has always felt as that current banking systems are much less efficient that they could be on the cryptocurrency could serve as a catalyst for an increase in efficiency.
Historically speaking, he says, major internal progress did not happen until financial forces gave them no choice.
“By definition, up until Bitcoin, there wasn’t anything that was really external to [institutional] financial systems. As a company, you have to be connected to the [institutional] financial systems–if you want to pay salaries, if you want to accept payments.”
“And all of a sudden, something here can really make a difference,” he continued, adding that “I’m not on the Libertarian side, I don’t think that banks, or for that matter, governments are going to go away. But I do think that given the proper shift in balance, we can see something [revolutionary.]”
He also stated that even if the crypto industry only serves to make the banking industry cheaper and more efficient, it would bring a great deal of satisfaction to him.
That is the core goal of his company Simplex which is working to enable access to people who wish to get into the crypto world by running a secure escrow service for larger fiat to crypto transactions as well as a payment platform that allows merchants around the world to accept the various payment methods.
“Credit card fraud is [the cause of the theft of] tens of billions of dollars per year,” Lehavi explained, and “when we started Simplex five years ago…[the purchase of crypto with a credit card] is something that was considered impossible to provide.”
Their business model has been helping people to buy crypto using fiat currency while not having to involve the banks to a great degree.
The reason they're able to do this because their companies in specifically associated with crypto and so banks will not have a reason to block their withdrawals or deposits through any card they issue and this helps get around the current issue of banks refusing to give services to crypto companies.
Between this and the other institutional investors are putting their money into crypto, the future is bright.