There is no doubt that virtual digital currencies are driving the latest financial revolution while directly competing with traditional banking institutions and other leading financial service providers.
In the past few months, fintech companies have taken an unprecedented lead in the financial space with their valuations soaring new highs. Just last week, Binance – one of the world’s biggest digital currency exchanges surpassed the valuations of Deutsche Bank, Germany’s largest financial institution.
Now, a London-based fintech startup – Revolut – has recently reached $1.7 billion valuations while beating its rival TransferWise which is one of the most dominant fintech businesses in entire Europe. TransferWise provides services to users and investors by allowing them to send banks payments at a very low cost and in shorter verification periods.
Revolut’s phenomenal rise to such high valuations is majorly after the company integrated cryptocurrency trading to its platform while allowing users to buy and sell digital currencies. Before the end of 2017 Revolut was valued at less than billion dollars. The company has also released a debit card service that allows users to spend their digital currency holdings at any Visa-accepting merchant.
This strategy of integrating cryptocurrency trading service along with its money transfer services seems to have been a lot beneficial for Revolut and has helped it to uproot TransferWise from its number one position in this domain. Revolut has said that one of the major reasons for its valuations to surge is its equally booming user base. The fintech firm told that following the integration of crypto trading there has been a steep 70 percent jump in its user base.
In addition to Coinbase, Revolut is the only fintech company in entire Europe that allows its users to spend, store, send, and receive payments from both – cryptocurrency accounts and bank accounts.
One of the major reasons for the slow down of the crypto space since the start of 2018 is the regulatory oversight and pressure looming in this sector. The latest report from Thomson Reuters shows that a huge amount of institutional money is waiting to enter the crypto space as more clarity regarding crypto regulations emerge. The report shows that big institutional giants are preparing to trade cryptocurrencies in the next 3-12 months.
Also, last week, Adena Friedman – CEO of the world’s second-biggest stock exchange Nasdaq told that they would certainly consider launching a cryptocurrency exchange as more regulatory clarity emerges and the crypto space becomes more mature.
“Certainly Nasdaq would consider becoming a crypto exchange over time. If we do look at it and say ‘it’s time, people are ready for a more regulated market,’ for something that provides a fair experience for investors. I believe that digital currencies will continue to persist it’s just a matter of how long it will take for that space to mature. Once you look at it and say, ‘do we want to provide a regulated market for this?’ Certainly, Nasdaq would consider it.”
Countries like the U.S, Japan and South Korea have also shown a positive approach in for adopting cryptocurrencies while allowing companies and businesses to foster in this space.
Earlier this month, South Korean minister of the Ministry of Strategy and Finance that financial banks should look forward to improving their services so as to meet the heat of the rapid rise of alternative payment systems like digital currencies and the threat they offer to the existing fiat systems.
“Cryptocurrencies like Bitcoin and Ethereum, which led an investment and speculative bubble earlier this year, have stabilized and are leading both the authorities and investors to question the foundation of the fiat system. The central bank should consider the emergence of alternative payment methods such as cryptocurrencies as a threat to the existence of the traditional fiat system,” Minister Kim said.