In December 2017, an offshore bank sited in the Commonwealth of Dominica – Digibank officially announced entering into a strategic partnership with Jubilee Fintech Holdings Limited. They will be working on the development of a project named DIGI – Decentralized Intelligent Global Instructions. DIGI will be the world’s first tri-ledger blockchain, processing records of all DGCoin transactions, all trading instructions and results on Jubilee Exchange as well as all FIAT transactions made by Digibank customers.
The birth of Bitcoin in 2008, and the introduction of blockchain technology, a way of creating a distributed common ledger that is both secure and decentralized, has opened up a new paradigm to which transactions can be made. Cryptocurrencies – tokens representing all forms of value and backed by the blockchain’s decentralized model, have become increasingly popular as a mode of transaction for cross border transfers.
DigiBank armed with its 3 comparative advantages – full digitalization, faster processing speed and lower transaction cost – provides peer to peer banking and financial services such as personal deposit and withdrawals, international remittances, FIAT and cryptocurrency trading, etc as well as wealth management services such as micro-financing, business loans, project crowdfunding, etc.
The global number of high-net-worth individuals (HNWIs) grew by 7.5% to 16.5m last year, according to the 2017 World Wealth Report by Capgemini, a consulting firm. HNWI have at least $1m in investable assets, excluding their main home, its contents and collectable items. Total HNWI wealth came to $63.5trn last year, with the highest proportion concentrated in the Asia-Pacific region.
The increase in the number of high-net-worth individuals lead to stronger and more demanding needs for efficient banking and wealth management services. The current conventional centralized banking and the immense costs of transactions seems ill fitted to satisfy the needs of the HNWIs.
Digibank with its blockchain powered decentralized banking services looks set to fill the void. It will be interesting to see this project running in its full scale – the first global banking network that is controlled by no one party, whose vault of wealth is vastly distributed, where flow of wealth is determined by the entire community.