What does e-banking on the blockchain look like?

Of all the Web2 applications, services and products being reimagined in a decentralized, Web3-ready way, perhaps banking (and e-banking) is one that makes the most sense. Given that a core tool of Web3 is cryptocurrencies, looking at how we can redefine the way we pay, get paid, invest, and handle our assets in general, just makes a whole lot of sense.

So far, I've personally tried Ethermail (the Web3 answer to email), SendingMe (a messenger/Telegram tool alternative), and Appics (a social media platform rewarding creators with tokens).

But what about banking and e-banking? How might that look in a Web3 world?

One company is already making moves and has an offering!

Fiat24 is the only licensed fintech bank that has fully abandoned servers, and instead uses public blockchain to book client ledgers. Specifically, they use Layer 2 rollup solution Arbitrum to run their core banking system. Before diving into what they do, let's consider the current infrastructure.

Wallets for Storing, Exchanges for Off-ramping

At the moment, non-custodial wallets are built for buying, selling and holding your tokens, but they don't offer an easy way to cash out. If I want to move my assets from MetaMask into real-world, fiat money, the process is multistep and can become costly with each of those steps.

Meanwhile, exchanges force users to convert crypto to cash, charging fees depending on your preferred cash out method. This is in addition to other fees you may have incurred while converting your crypto to fiat, making the process rather clunky and not very user-friendly.

So, what about using your wallet as the tool to spend your crypto directly, without needing to move onto third party apps?

The Fiat24 Solution

Consider these two scenarios:

1. First, you are a DeFi native who doesn’t feel comfortable storing your crypto assets in a centralized exchange, but prefer to control your private key in your non-custodial wallet. One day, you need $100 to pay for dinner with friends. Imagine that you can simply open your MetaMask, connect to the Fiat24 dApp, and convert 100 ARB tokens into fiat money. Essentially, you can top up your Fiat24 Visa Debit card and pay for the meal instantly without the hassle of performing multiple steps to move your tokens out of MetaMask and into a centralized exchange.
2. The second scenario — you get 100K in an ARB airdrop and you would like to buy a Porsche 911. What you currently must do is to sell your ARB tokens in a centralized exchange and move the fiat money into your bank account. If your bank is not crypto-friendly, and does not understand what ARB tokens are, you will face a lot of questions. Imagine having a Swiss offshore cash account in your own name, allowing you to convert 100K ARB tokens directly in your MetaMask to fiat money in one process, and send that fiat money to your car dealer. This will be possible with Fiat24 in Q4 of this year.

Current Issues in the Crypto Payments Landscape

I am sure you are all familiar by now with other crypto cards, such as crypto.com, Coinbase and Binance cards. These are all built on Web2 structures, and to access the cards, you need to be logged into a CEX platform first.

On the other hand, the Fiat24 card is built on Web3 infrastructure, with the Fiat24 NFT being your account. Whatever wallet you choose to put the NFT in is the wallet which becomes your e-banking tool. All transactions are booked on Arbitrum and only the owner of the NFT has access to the related account and is able to make transactions.

Worth checking out, as well as to read the full article on the company on Coin Telegraph!

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