First Bitcoin Bank May Launch in Australia

Eric Calouro
By Eric Calouro February 12, 2014 08:23

First Bitcoin Bank May Launch in Australia

Bitcoin Small LogoWeb technology company HotwirePE of Australia may be looking to make a splash in the digital currency community by launching a bitcoin bank as soon as this year. Announced on Tuesday, Denariuz Bank will focus only on cryptocurrencies, particularly bitcoin.

HotwirePE CEO Dr Steven Wright said his company has been working with the Australian Tax Office and the Australian Securities and Investments Commission to make it all come together for the past ten months, and says he hopes to have a “full banking licence” from the Australian Prudential Regulation Authority for bitcoin banking.

“We seek to turn Bitcoin into an internationally-regulated currency and investment tool that uses secured micro-payments for e-commerce transactions between anyone, at anytime, anywhere, and on any-device,” he said.

Despite the fact that a bitcoin bank may seemingly go against the principal of this emerging digital currency in the first place, Denariuz hopes to do things the right way.

“The great thing with Bitcoin is you can’t loan more than you have; you can have a variety of different contracts and derivatives and all the rest actually set up, but you are limited in that you can’t loan Bitcoins that you don’t actually have,” he noted.

HotwirePE plans to store user funds in cold storage, as any responsible company would. With no physical branches or reliance on bitcoin ATMs, the company plans to allow user access to their accounts in a similar manner as today’s online banking solutions.

No word on when Denariuz Bank will launch, but Wright continues his endeavor to gain approval from Australian regulators. He will be meeting with tax officials in Canberra this week. (via InvestorDaily)

Eric Calouro
By Eric Calouro February 12, 2014 08:23

Poll of the Week

Will something better than bitcoin (in terms of cryptocurrency) come along?

View Results