Bitcoin Switzerland is the pioneer of crypto in Switzerland.For two years, Arthur Vayloyan, former banker of Credit Suisse, led the company as CEO.With Zukunft Banking, he discusses blockchain and cryptocurrency opportunities for the Swiss financial center and its branches as a fan of the country’s government.What is the importance of blockchain and crypto-currencies for the financial sector?
Arthur Vayloyan: The historical importance of blockchain technology and its application to crypto-currencies is far superior to what we generally think.
But that everything is put in place, seems to me a prediction too radical.But one by one: The first decentralized application for digital payments was Bitcoin Cryptocurrency.
Launched in October 2008 with a short white paper.Just when the financial world was on the verge of collapse and had almost dragged the global economy into the abyss.As of January 3, 2009, the Bitcoin cryptographic-based payment system has been activated with the first block and has been running continuously for 7/24 years.
Technically, a great success.More importantly, it has been shown that an exchange of Internet value between two parties without the intervention of a central third party is possible.”Internet of Money” was born.The previous exchange of information on the network has therefore been extended to a decisive application.Such a thing has been considered impossible for a long time.After all, it is precisely the quality of digital data that makes it possible to copy at will and at a marginal cost of almost zero.
For a transfer of value between two parties, however, this feature of any copiability has no value, in the most real sense.The use of a blockchain associated with many other technical innovations then allowed this sophisticated solution.
In this context, people sometimes speak a little uncomfortably with DLT, which means distributed ledger technology.
We only succeed if we remain innovative and it is not natural.Sounds good, but do banks like that? You are intermediaries …
The harsh reality: Banks are losing more and more their position as trusted intermediaries.
Huge cost pressures, shrinking margins and the potential loss of entire business sectors are doing their part.The application of the various possibilities offered by the DLT could in part help to achieve positive economies of scale.Specifically, for example, in complicated and sometimes slow billing and settlement processes, especially in global operations.There the potential is great.It is heartening to note that after the initial big skepticism and crippling restraint, more and more banks are launching initiatives for blockchain applications and even opening up an offer of investment in cryptocurrency.With Bitcoin Switzerland, you are mainly involved in the trade of crypto-currencies.
What about the regulation of DLT and crypto-currencies in this country?
I’m just happy.Above all, the Federal Council, which has played a leading role in the field of DLT.He soon recognized that the Swiss financial sector should also be active in this area and has already published a report on virtual currencies in 2014.Since then, the provincial government, but also the government of the city of Zug, has been very favorable to the concerns of the young crypto industry.Another important step is a consultation on the amendment of the federal Blockchain and DLT legislation, launched in March 2019.And FINMA, often criticized, was very solution-oriented when it published its ICO monitoring report in February 2018.A message that, by the way, has received positive attention around the world.How is Bitcoin Switzerland?
I have been CEO of Bitcoin Switzerland for two years and we have accomplished a lot and met some challenges, including the rise of Breithorn at 4164 meters with a large part of the troupe.
A little proud perhaps already be there, especially in the brilliant team of Bitcoin Switzerland.The captivating and positive attitude motivates and encourages both to advance our growth with determination and caution.When we started on November 13, 2017, we were 20 people, we now have about 120.We raised 50 million francs with a starting capital of 100,000 francs.I am also satisfied with how the image of the industry as a whole is constantly improving.On which pillars is the Bitcoin Switzerland company based?
Today, Bitcoin Switzerland is strategically positioned to operate in a variety of high-income industries.In addition to the traditionally important activities of trading and ICO, we have also been able to develop in recent years the ISAE 3402 certified storage solution for encryption assets, installed exclusively in Switzerland.An extremely important service that allows our customers to securely store more than $ 1 billion in cryptographic assets.
In addition, our customers can borrow their cryptographic assets stored at home and are not forced to sell at the wrong time, for example.A variety of other lucrative businesses is added, which still carry pretty exotic names for the general public, such as symbolization and staking.Perhaps more concretely is the recently announced partnership with Worldline, the European payments leader, or our extensive consulting and analysis service on key issues related to crypto-standardization and regulation.Why does Bitcoin Switzerland really need a banking license?
We submitted our application for a banking license and securities dealer to FINMA in early July 2019.It will take a little time to obtain the license and you can only be patient here.
But unlike the two licensed crypto newcomers, we have strong sales and a well-diversified customer base.At first, we only wanted the dealer license.The FINMA guidelines on privacy, as defined by securities, have therefore led to a mandatory measure.Transactions on this category of cryptographic assets may only be performed by an authorized securities dealer.
After the first analysis, we then realized that the path to the banking license was not too far away and allowed a very interesting rounding of the offer.Fortunately, we have many years of business experience and licenses will allow us to market more products and services and promote them even more intensely.The financial sector based on cryptography is at the very beginning.The possible field of action is vast and difficult to neglect in all its dimensions.It seems exciting to me that the frequently cited democratization continues to lead people without any access to basic financial services, especially because of the opportunities offered by crypto-financial products.The entire cryptographic world is focused on decentralization and the elimination of intermediaries such as banks.
Why do cryptography companies need a banking license?
If you want to offer banking services in accordance with the regulations in force, you need a license, a banking license.
Regardless of this, however, customers are of the opinion that, in the cryptographic environment, the technology must be separate from the associated service.
The technology is decentralized and offers many new applications and benefits.It’s a good thing, as long as nothing goes wrong and the value of the transactions remains manageable.But when it comes to larger investments, appropriate expertise is needed.Customers then appreciate the experienced and professional service providers who have been dealing with this topic daily for years and know exactly what to look for.In addition, it is also not exciting for everyone to deal in depth with technical and security requirements.It’s more for amateurs with a great affinity for technology.But even this segment enjoys the benefits of an experienced service provider such as Bitcoin Switzerland.
And it will take a while to get to the turnkey and user-friendly solution.
Until then, we are certainly in great demand.How do you see the future of the Swiss financial center? What are the changes in the house in the medium and long term?
The Swiss financial center has to face new technologies, including DLT, to make innovations.
This requires appropriate framework conditions, which the government is currently trying to develop.It is a privilege to live in a country whose political leadership acts so well for the economic and technological framework.
We only succeed if we remain innovative and it is not natural.Innovation is on the agenda and crypto-finance is an important pillar of modern Switzerland, the famous Crypto Nation Switzerland.
State of digital mind
On a scale from 0 to 10:
7 | Are you numerically fit? 10 | How is your business digital? 9 | To what extent will new technologies (such as Blockchain, AI, Machine Learning, AR / VR) change the industry? 8-10 | How much would you like to invest as an opinion leader in these new technologies for the future?
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Vision 2050
What will the bank look like in 2050? The technology will improve long-term banking operations.Things that are still bumpy and shirt-sleeved today will sustainably enrich our lives.
Why does your business still play a role? Because we have been very successful so far, that we are adaptable, very open minded and actively participate in the definition of change.
Why is your business exciting for the Y and Z generations? Thanks to our founders and our history, we have an open attitude and interest in the new.Bitcoin Switzerland is not reserved for specific generations, but to all those who love this dynamic and open culture.Related.