The old financial world the way that we’ve known it for many decades has worn off and now bends under the weight of multiple issues and flaws. Banks and other financial institutions make up such a huge and complicated structure that it inevitably fails to satisfy the needs of all social groups. The small business owners make up the group that is especially vulnerable to all these flaws.
In this article, we are going to speak about the insufficiencies of the current financial system and how Nexxo is going to help small businesses solve them based on the blockchain technologies.
4 Major Issues With The Banking System
The current financial system bears four main problems that prevent not only businesses, but also end-users from convenient value transfer.
1. High fees for transactions between banks.
Typically, banks don’t change any fees for transferring funds between your own accounts. But we you have to send funds to people and companies with accounts in other banks and lose money on the way due to predatory fees.
Of course, you can go to your bank’s ATM, withdraw cash and then upload it somewhere else, but there’s no guarantee that there’s an ATM of your counterparty’s bank anywhere close to your habitat.
2. A bank can block your account without any explanation.
If a bank considers a transaction suspicious, it can block your account at any time and will never give you any explanation. You’ll have to go through writing dozens of explanatory memorandums about where these funds have come from and proving you are not a lawbreaker in order to unblock your account.
3. You have no control over your funds.
In fact, all the money you store in a bank belongs to this bank. Yes, you have access to your bank account and can withdraw your funds at any time, but while you keep them there, they are not yours. The bank can do whatever it please, check the previous point.
4. Difficulties for small businesses to set up a bank account.
As we’ve already stated above, small business owners suffer from the current financial system more than anybody else. When trying to get an account and run their business officially, they are required to fill tons of documents just to be eventually rejected as they are too small and insignificant. Banks are just not interested to work with them while they have much bigger fish to catch.
How blockchain technologies can solve these problems
With blockchain technologies and cryptocurrency, all these issues can be easily resolved.
- Small network fees. When sending money in crypto, you only have to pay a small network fee which is much lower than what banks charge.
- No one can block your account. With crypto, there is no third-party that can freeze your funds.
- Full control over your funds. You are the only one to access your funds, no one can ever block your account.
- You can freely grow your business. Having got rid of all the restrictions imposed by the financial system you can easily access payments from customers all over the world and bring your company to the new heights.
Nexxo platform makes dreams a reality
Nexxo platform links the blockchain solutions with the real world’s financial structures in order to help small businesses grow and easily resolve all operational tasks. Nexxo provides small business owners with all the commodities that huge companies use on a daily basis, such as POS solutions, eCommerce and payroll cards. With Nexxo, small businesses can easily conduct all the operations while staying in the legal zone.
Nexxo blockchain is based on the IBM Hyperledger blockchain technology. This is a highly secure, private and permissioned local blockchain that is built to connect with local banks and comply with local central banks, law enforcement, legal governments instead of circumventing them.
The network that Nexxo is going to build will be promoted by the so-called enabler, the specialists that Nexxo will find, recruit and train in every covered region in order to help small businesses get access to Nexxo’s services. The enablers will be rewarded for their activities and for growing the network and thus motivated to help Nexxo cover more and more regions. We are going to tell about the buy-back program and how enablers can benefit from it in one of the following articles.
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