NetCents Technology Inc (CSE:NC) (OTCMKTS:NTTCF), a disruptive cryptocurrency transaction solutions company, said Thursday that it is expanding its global presence with a defined growth plan for its operations in the European Market.
In a statement, NetCents Technology CEO Clayton Moore pointed out that European financial institutions are focusing on crypto as a way to “re-define and differentiate” their business in the “current low-interest-rate environment.”
“A recent indicator includes a consortium of 40 German banks that recently requested that BaFin (the Bundesanstalt für Finanzdienstleistungsaufsicht, German Federal Financial Supervisory Authority) award banks the right to receive and custody deposits of cryptocurrency,” said Moore.
READ: NetCents Technology exceeded $1.3M in monthly processing volume in January
"As such, a large part of our recent European trip was to further develop relationships with multiple European banks to expand our European footprint to meet this need,” he added.
Moore said the company believes that bringing crypto to the mainstream requires that retail investors are able to treat these products like traditional currencies.
“They should be able to deposit them at their normal commercial bank and have deposit insurance on those coins, and if they lose a password that they can obviously recover that currency (a potential risk with many current crypto accounts). Our goal is to provide those banks the technology to do that in an efficient way,” said Moore.
NetCents is currently in negotiations with multiple European banks in the development of two specific outcomes:
• Facilitating the ability to service its growing European merchant-base to support transaction growth; and
• Licensing NetCents' Crypto Banking Stack (CBS) to European institutions, which are about to be allowed to receive cryptocurrencies for the first time.
The company's Crypto Banking Stack will enable financial institutions to use their existing hardware and software to offer their clients access to a fully integrated cryptocurrency processing and transaction solution. The implementation will require only minor modifications to their legacy systems eliminating the need to develop and maintain their own in-house proprietary cryptocurrency processing technology. This allows for a low-cost crypto ready processing solution to be quickly implemented without the requirement for an extended and costly development cycle.
The company's Crypto Banking Stack will have the ability to provide account holders with the ability to convert and move balances between their crypto and fiat bank accounts.
According to the company, the NetCents banking stack is the "rails" that enables cryptocurrency accounts, transactions, and functionality into existing platforms for banks, financial institutions, and money service businesses. The company said licensing the technology would open up a new revenue stream and also drive additional trading volume to the NetCents exchange.
The new expansion will include the establishment of an office in Munich, Germany. Separately, the company thanked its new advisory board members for its efforts on the recent trip to Europe in unearthing and developing new crypto banking opportunities.
NetCents, based in Toronto, has developed a blockchain platform for merchants and consumers looking for a better way to transact online with cryptocurrency. Its technology allows merchants and firms to accept cryptocurrency payments from customers by providing them — the recipients — with instant settlements.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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