KBC, one of the largest bank in Belgium, announced its plans to launch its own cryptocurrency KBC Coin
One of the largest insurance and banking companies in Belgium, KBC has announced plans to launch its own cryptocurrency called KBC Coin, slightly changing its approach to digital assets.
KBC, one of Belgium’s largest banks is exploring the idea to launch its own token KBC Coin
KBC Coin, the bank’s native cryptocurrency, will be a kind of rewards token that will allow the bank to develop customer engagement strategies, promote its platform, and force users to accept its services.
The bank shared this announcement during the launch of the first months of ‘Kate’, the virtual assistant included in the banking app. Currently, KBC Coin is not available to the public yet, but it is in beta through a private environment. The bank did not disclose further details about the project’s roadmap.
In addition to the legal framework and economic characteristics of the project, KBC also focuses on the technological and privacy issues of its cryptocurrency.
De Morgen, CEO Johan Thijs said they want to give their users a platform that allows them to have complete control of their data.
“We wanted to protect the identity of their customers.”
KBC was emphatic when pointing out that their token is not related to Bitcoin or any cryptocurrency on the market. Furthermore, it notes that KBC Coin will only run inside the bank’s infrastructure, so it will not be subject to the wild price fluctuations that are characteristic of traditional cryptocurrencies.
Statements shared by Thijs and compiled by Business AM give a rough idea of how the token would work if its launch:
“This coin can be initially earned by loyal customers and spent on additional services … The coin will be in a closed system. It’s a closed-loop currency. So it’s not a currency like a Euro that allows you to go around the world and make payments everywhere … It’s a digital currency that we use in a certain environment, for example, the customer environment.”
It’s like a cryptocurrency, but it’s not a cryptocurrency. This distinction is important to the bank as it has maintained a cautious stance on cryptocurrencies for many years.
Even in 2015, long before the crypto boom brought Bitcoin and ICOs into the spotlight, KBC Bank warned its clients about the risks associated with Bitcoin and other cryptocurrencies. To avoid stereotypes, KBC cited Central Bank Digital Currencies, a type of digital asset backed by banks and functioning like fiat money, as close examples of the essence of KBC Coin.
The CBDC wants to establish itself as the next step in the evolution of currency by becoming the replacement of banks for cryptocurrencies. And while they are still not universally accepted, the idea has been contested by analysts with views for and against it.
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