Bitcoin and banks can work together, according to PrivatBank’s Alexander Vityaz, who sees card companies and cryptocurrency focusing on the technology aspect of transactions , while banks focus on brokerage.
Banks have had a tense relationship with cryptocurrency, from fighting Bitcoin to trying to patent blockchain technology for their own use.
However, Alexander Vityaz, Corezoid Founder and PrivatBank’s head of ecommerce, sees BitcoinCT r: 8 and card companies such as VISA and MasterCard working together with banks, taking on separate roles instead of competing for the same position.
CoinTelegraph spoke with Alexander Vityaz about banking’s shifting relationship with both card providers and Bitcoin. Bitcoin is not a competitor for VISA
CoinTelegraph: Banks dealing directly with Bitcoin seems to be a rare occurrence. Is that an accurate sentiment?
Alexander Vityaz: Yes, that is correct – because of compliance, KYC , AML . PrivatBank doesn’t work with Bitcoin directly. We use blockchain technology (Bitcoin digital signature – public and private keys) to sign financial documents, transactions, and even for encrypting traffic in mobile app.
CT: What prompted PrivatBank to be different in that regard?
AV: What prompted us? We wanted to spearhead this movement. Curiosity prompted us. We always wanted to be #1. For example, the first p2p card to card transaction we did in 2003 (!) in partnership with Visa. CT: Many in the cryptocurrency community think that Bitcoin and blockchain technology will be the end of banks as we know them today. Do you share that sentiment? AV: In brief, we don’t share this sentiment. These two technologies will coexist. Banks will become credit brokers, and Visa will deeply learn how to use Bitcoin and blockchain.As I’ve said before, Bitcoin is not a competitor for VISA, as VISA now isn’t the same as VISA back when PayPal emerged. […]
