The time when cryptocurrencies become first-class citizens of the digital economy is fast approaching — the question is not “if” but “when” this will happen. When that time arrives, the need to provide financial services for this emerging economy will be critical to fuel its growth. BITEX expects to be ready when that time comes by becoming the first locallyembedded crypto bank. It aims to provide financial services to the cryptocurrencybased digital economy that is relevant and useful to the local customer base in each region where it operates, while being available globally. BITEX will provide
cryptocurrency-based banking services for digital customers through a licensed technology platform available to local partners.
BITEX believes that it can make the greatest impact on society by working at the local level, and ensuring that the benefits of this new cryptocurrency-based digital economy can also be felt by those under-served or left out of the current banking system. Thus, instead of starting out immediately as a global bank, BITEX wants to ensure that its solution has a local impact. BITEX ’s crypto-banking services include:
● Customer care, user experience and governance that is localized;
● An ERC-20 compatible digital wallet for securely storing a customer’s cryptocurrency balances on a personal mobile device;
● The ability for using the mobile wallet with a virtual debit card for payments, exchanges and transfers;
Various Point of Sale solutions (both hardware and software based) for merchants to accept payments in their local currency from consumers;
● Currency exchanges between the G20 fiat currencies and various popular cryptocurrencies;
● Large scale business-to-business payments;
● Personal loans
BITEX will launch in mid-2018 with a subset of banking services offered to customers in 8 countries (Hong Kong, India, Japan, Korea, Philippines, Singapore, Thailand and the United Arab Emirates), with plans for expanding its reach in the future. Services will be operated by local partners that license the BITEX platform as a franchise and who will register with the financial authorities in their respective countries. By working with local partners, who have a much better understanding of local customers and regulators and making available localized applications and customer support, the BITEX crypto-banking platform becomes the most accessible crypto-banking solution on the market.
A payment infrastructure based on ATMs and mobile card readers is being developed for the BITEX platform that will be installed in over 20,000 locations throughout the world as the services are rolled out. BITEX will also offer APIs to its platform that will allow 3rd party developers to create useful, country-specific features and applications.
BITEX is conducting an Initial Coin Offering of its utility token, the BITEX Coin with symbol XBX, to promote the use of the BITEX crypto-banking platform. As described in this White Paper, XBX will be used for access to the services offered by the Bitex platform. After the ICO, the token will be available for purchase from other XBX token holders at BITEX ’s exchange as well as other well-known crypto exchanges. BITEX will demonstrate the local impact it will have in each country where it is licensed by offering a relevant localized financial service bundle and redefining how financial services for this new cryptocurrency-based digital economy can be delivered. While there are multiple incumbents in the crypto-banking space, Bitex expects that this hyper-localized strategy will give it an edge in creating, over time, the first truly global crypto-bank for mainstream consumers.
Cryptocurrencies Are Moving Into Everyday Commerce
However, crypto exchanges offer only the ability to exchange one’s holdings between currencies (fiat/crypto and crypto/crypto) which serve only a small part of the financial needs of a growing crypto-economy. If commerce based on cryptocurrencies is to progress to the point of having these accepted as a proper medium of exchange for goods and services and take its place as a peer to fiat currencies, it is necessary to create new institutions that can cater for the needs that people have come to associate with financial transactions. These include the ability to store currency, exchange between currencies as needed, use currencies for payment of goods and services, automate bill payments, take out loans, etc. — in short, the services currently provided by commercial banks throughout the world.
A crypto-bank, therefore, is the new institution required for this growing digital economy based on cryptocurrencies. It goes beyond the confines of a traditional commercial bank by offering services to its consumers on
● a global scale, unhampered by national boundaries, although subject to national/local laws pertaining to banking and finance;
● a decentralized, distributed and immutable ledger which cannot be affected by any single point of failure or compromise;
● the ability to carry out pseudonymous transactions between parties where trust is captured through cryptographic means rather than written contracts or external supervision;
● include cryptocurrencies as equal partners to fiat currencies in transactions between individuals, individuals and businesses, and between businesses;
● the ability to conduct escrow payments through cryptography rather than traditional, time consuming payment methods.
Serving local needs
BITEX believes that it can make the greatest impact on society by working at the local level, and ensuring that the benefits of this new cryptocurrency-based digital economy can also be felt by those under-served or left out of the current banking system. Thus, instead of starting out immediately as a global bank, Bitex wants to ensure that its solution has a local impact. To that end, Bitex has structured itself so that its core banking platform is operated by local franchise holders in various countries/regions that comply with local laws and regulations, and understand the local context best so as to tailor localized financial services that positively impact the local economy.
BITEX ’s model of embedding a local solution using a common platform is not unlike that of Uber’s model. For example, Uber uses local managers and employees to create variants of its services to cater to local differences — what worked so well in the US is unlikely to be as successful in India, for instance5 — while regulatory differences force a variety of approaches6. Similarly, BITEX will not be a one-size-fits-all cryptobank, but adapt itself to local circumstances.
STAKEHOLDERS AND SERVICES ON THE BITEX CRYPTO-BANKING PLATFORM
The following subsections describe the stakeholders/participants in the BITEX cryptobanking ecosystem and the service available to or provided by each. The two main components of the Bitex crypto-banking platform are:
●BITEX Pay , the next generation payment solution for both consumers and merchants; and
● EZBITEX , the currency exchange and banking infrastructure with a decentralized, distributed and immutable ledger provided by BITEX , which underpins the functioning of the entire system. The function of each of these is described systematically in the following subsections from the point of view of the different stakeholders/users of the BITEX system.
BITEX customers will be able to avail of bank-like services (payments, currency exchange and transfers, debit card, and personal loans) that will be offered in 8 countries initially. Specifically, consumers will be able to take advantage of the following services.
Payments to Merchants using BitexPay
BITEX Pay represents the service offered by BITEX to consumers and merchants for payment of goods and services using cryptocurrencies. Merchants will be able to accept payments in cryptocurrencies or fiat currencies of their choice. Consumers who sign onto the BITEXPay solution will be provided with ERC-20 compatible wallets that contains their cryptocurrency holdings. Initially, BITEX will only support the following cryptocurrencies: BTC, ETH, and LTC and the BITEX Coin, XBX. As new currencies are added to the EZBITEX exchange, consumers will be informed of the availability of these via mail or social media. A consumer’s wallet, maintained on her ubiquitous mobile device, is called the Holding Wallet and will be under her complete control. BITEX will have no control or access to this wallet. Thus, in this decentralized banking environment, consumers maintain their private keys and remain custodians of their own funds. Every BITEXPay Holding Wallet will have a BITEXPay account with an associated virtual BITEXPay debit card linked to the assets held in the wallet. Consumers will be provided, upon request, a physical debit card.
To use the assets in the Holding Wallet, a consumer will transfer any amount in crypto assets that he deems suitable to one of several different types of wallets maintained by BITEX . We describe another wallet — the Payment Wallet — in this section. A Payment Wallet is associated with a consumer’s BITEXPay account on the EZBITEX platform and represents, in a sense, a “debit account” used for payments of goods and services. It is expected that consumers will maintain a suitable balance in their Payment Wallets to ensure a quick and seamless buying experience when the need arises. A consumer’s virtual (or physical) debit card balance will be the amount stored in his Payment Wallet.
Business to Business payments
The EZBITEX platform will offer a payment gateway through which merchants or businesses with BITEX accounts can pay each other for goods and services. This payment service will operate globally. The merchant/business that wants payment for goods or service provided can generate an invoice or a payment request in the form of a QR code or link which is shared with the payer. The invoice also contains information similar to those used in traditional cross-border banking payments including the payment purpose and the registration and tax details of the two parties. The link in the invoice takes the payer to a payment page on the EZBITEX portal where the details are confirmed.
Payment is made from the payer’s merchant account to the payee’s account. If required, an exchange can be made from the (crypto)currency in the payer’s wallet to the (crypto)currency in which the payee wishes to accept payments. Both parties can download receipts from the EZBITEX platform to confirm the payment as well as for tax or corporate accounting purposes.
THE BITEX CRYPTO-BANKING PLATFORM — EZBITEX
The BITEX crypto-banking platform allows consumers to process payments, transfer,exchange and take loans in cryptocurrencies, all from their smartphone.The backbone of the BITEX crypto-banking platform is the decentralized exchange called EZBITEX . The EZBITEX platform will:
● Offer conversions from crypto to crypto, from fiat to crypto and from fiat to fiat all in this one exchange;
● Offer payment gateways (provided by established third parties such as Braintree or Stripe) for the purchase of cryptocurrencies using a credit card, debit card or online banking;
● Host the various types of consumer wallets (Payment, Trading, Staking, Loan) associated with consumer accounts and provide the various services described in earlier sections;
● Provide APIs to access the EZBITEX functions to third parties that want to use EZBITEX as their payment platform;
● Provide BITEX -branded ATMs in locations where BITEX operates, to allow use of physical and virtual BITEXPay cards as well as third party “Powered by BITEX ”cards;
● Offer business-to-business payments for goods and services with invoices andreceipts.
The EZBITEX platform software will be licensed by BITEX to local partners who will obtain all necessary permits from the local financial authorities for operating franchises in that locality. EZBITEX will launch in mid-2018 with a subset of banking services offered to customers in 8 countries (Hong Kong, India, Japan, Philippines, Singapore, South Korea, Thailand, and the United Arab Emirates), with plans for expanding its reach in the future
By working with local partners, who have a much better understanding of local customers, partners, and regulators, and making available localized applications and customer support, the BITEX crypto-banking platform becomes more accessible and is a major differentiator compared to similar efforts.
The EZBITEX platform will be deployed in several globally dispersed data warehouses for redundancy. The infrastructure will be secured with a military-grade security solution implemented by a well-known security firm that wishes to remain unnamed (to thwart hackers who may know ways to circumvent some of its threat mitigation techniques).
THE XBX TOKEN
All financial transactions on the EZBITEX platform will be fueled by the XBX token. The XBX token is therefore the utility token that allows various stakeholders in the BITEX financial ecosystem to use its offered services. These tokens, of which there will be a total of 300,000,000, will be available only during the Initial Coin Offering (ICO). No XBX tokens will be issued after the ICO. Afterwards, the XBX token is expected to be listed on various crypto exchanges including the EZBITEX exchange. Such listing exchanges which will be identified later. Stakeholders can purchase XBX tokens from these exchanges or other token holders.
Use of the XBX Utility Token
Transaction fees
Every transaction on the EZBITEX platform will incur a transaction fee which is a percentage of the transaction value, calculated in XBX at the current exchange rate for its conversion on the EZBITEX platform. Fee-incurring transactions on the EZBITEX platform include conversion between a fiat currency and a cryptocurrency, between pairs of cryptocurrencies, payments (by the seller) for B2C purchases, and cryptocurrency transfers (by the sender). Every exchange between a fiat currency and a cryptocurrency also requires that an amount of XBX corresponding to 0.55% of the transaction amount is “burnt” and removed from the total amount of XBX in circulation. A smart contract created on the Ethereum blockchain will record the fee for every transaction, the equivalent amount of XBX removed from circulation and provide the current amount of XBX in circulation. Given the expected amount of XBX in circulation after the ICO, it is anticipated that the supply of XBX available for the continued use of the EZBITEX platform will last many decades.
Loans
Consumer loans will be denominated in and paid out in XBX tokens. For collateralized loans, the loan amount will be based on the current exchange rate on the EZBITEX platform for the cryptocurrency offered as collateral . Consumer may repay the loan balance (and regain the collateral) using XBX tokens.
BENEFITS OF THE BITEX CRYPTO-BANKING PLATFORM
Consumers
The EZBITEX crypto-banking solution requires consumers to maintain their own crypto wallets (the Holding Wallet) on their mobile devices. No private keys for this wallet are shared with the EzBITEX platform. A truly decentralized way of storing the other customer wallets (Payment Wallet, Trading Wallet, etc.) on the BITEX platform and using the platform only when needed will allow BITEX to ensure that customer assets are safe from hacking or other attacks. Alongside with this, BITEX will encrypt development source code as well as use PCI Standard Certification for security in the near future. A personal, mobile wallet makes the BITEX crypto-banking solution widely available, as recent studies show that mobile penetration is widespread throughout the world and allows a greater percentage of the population in under-developed countries to participate in financial transactions than have access to conventional banking services.
By maintaining control over one’s wallet, and sharing only certain amounts deliberately with BITEX for various purposes such as purchases or transfers, consumers will not have their entire crypto assets under the control of a centralized entity (as is the case with current crypto-exchanges) with all the security risks that it entails. Consumers will not arbitrarily or capriciously be denied the ability to purchase cryptocurrencies in any exchange using credit cards offered by third parties that are “Powered by BITEX ” or their BITEXPay debit cards. EZBITEX as the card processing network will ensure that such transactions are authorized by the card issuer.
Merchants
Merchants have multiple options for receiving payments - via a mobile EZBITEXPay app, QR codes, and card readers. "> Online merchants can add BitexPay as a payment option to their e-commerce portals. Again, for simple merchants (such as street vendors) the ubiquitous mobile device can be the merchant’s receiving wallet. There is no need to have a traditional bank account.
POST-ICO FUNDS DISTRIBUTION
The distribution of the Funds after both phases of the ICO. The funds raised from the sale of XBX tokens that take place during the pre-ICO and ICO phases will be used for the following purposes in the proportions shown:
● 47% will be spent on ongoing development of the BITEX , EZBITEX , and BITEXPay platforms;
● 17% will be spent on registration fees, legal and accounting expenses for building franchises in more regions where Bitex seeks to register its financial services;
● 13% will be spent on marketing ap physical locations (Kiosks and Retailers), the Web (through social media) and using cross-border payments partnerships;
● 10% will be spent on recruitment of a banking team with expertise in the financial industry;
● 8% will be spent on administrative expenses for running Bitex Global;
● 5% will be spent on investment in development of BITEX -related apps and platforms supporting the future expansion of BITEX.
FOR MORE INFORMATION :
Website : https://ico.bitex.global
Whitepaper : https://ico.bitex.global/docs/XBX-Token-WhitePaper.pdf
Facebook : https://www.facebook.com/bitex.global/
Authors : tellysa
Bitcointalk's profile : https://bitcointalk.org/index.php?action=profile;u=1898514
To use the assets in the Holding Wallet, a consumer will transfer any amount in crypto assets that he deems suitable to one of several different types of wallets maintained by BITEX . We describe another wallet — the Payment Wallet — in this section. A Payment Wallet is associated with a consumer’s BITEXPay account on the EZBITEX platform and represents, in a sense, a “debit account” used for payments of goods and services. It is expected that consumers will maintain a suitable balance in their Payment Wallets to ensure a quick and seamless buying experience when the need arises. A consumer’s virtual (or physical) debit card balance will be the amount stored in his Payment Wallet.
Business to Business payments
The EZBITEX platform will offer a payment gateway through which merchants or businesses with BITEX accounts can pay each other for goods and services. This payment service will operate globally. The merchant/business that wants payment for goods or service provided can generate an invoice or a payment request in the form of a QR code or link which is shared with the payer. The invoice also contains information similar to those used in traditional cross-border banking payments including the payment purpose and the registration and tax details of the two parties. The link in the invoice takes the payer to a payment page on the EZBITEX portal where the details are confirmed.
Payment is made from the payer’s merchant account to the payee’s account. If required, an exchange can be made from the (crypto)currency in the payer’s wallet to the (crypto)currency in which the payee wishes to accept payments. Both parties can download receipts from the EZBITEX platform to confirm the payment as well as for tax or corporate accounting purposes.
THE BITEX CRYPTO-BANKING PLATFORM — EZBITEX
The BITEX crypto-banking platform allows consumers to process payments, transfer,exchange and take loans in cryptocurrencies, all from their smartphone.The backbone of the BITEX crypto-banking platform is the decentralized exchange called EZBITEX . The EZBITEX platform will:
● Offer conversions from crypto to crypto, from fiat to crypto and from fiat to fiat all in this one exchange;
● Offer payment gateways (provided by established third parties such as Braintree or Stripe) for the purchase of cryptocurrencies using a credit card, debit card or online banking;
● Host the various types of consumer wallets (Payment, Trading, Staking, Loan) associated with consumer accounts and provide the various services described in earlier sections;
● Provide APIs to access the EZBITEX functions to third parties that want to use EZBITEX as their payment platform;
● Provide BITEX -branded ATMs in locations where BITEX operates, to allow use of physical and virtual BITEXPay cards as well as third party “Powered by BITEX ”cards;
● Offer business-to-business payments for goods and services with invoices andreceipts.
The EZBITEX platform software will be licensed by BITEX to local partners who will obtain all necessary permits from the local financial authorities for operating franchises in that locality. EZBITEX will launch in mid-2018 with a subset of banking services offered to customers in 8 countries (Hong Kong, India, Japan, Philippines, Singapore, South Korea, Thailand, and the United Arab Emirates), with plans for expanding its reach in the future
The EZBITEX platform will be deployed in several globally dispersed data warehouses for redundancy. The infrastructure will be secured with a military-grade security solution implemented by a well-known security firm that wishes to remain unnamed (to thwart hackers who may know ways to circumvent some of its threat mitigation techniques).
THE XBX TOKEN
All financial transactions on the EZBITEX platform will be fueled by the XBX token. The XBX token is therefore the utility token that allows various stakeholders in the BITEX financial ecosystem to use its offered services. These tokens, of which there will be a total of 300,000,000, will be available only during the Initial Coin Offering (ICO). No XBX tokens will be issued after the ICO. Afterwards, the XBX token is expected to be listed on various crypto exchanges including the EZBITEX exchange. Such listing exchanges which will be identified later. Stakeholders can purchase XBX tokens from these exchanges or other token holders.
Use of the XBX Utility Token
Transaction fees
Every transaction on the EZBITEX platform will incur a transaction fee which is a percentage of the transaction value, calculated in XBX at the current exchange rate for its conversion on the EZBITEX platform. Fee-incurring transactions on the EZBITEX platform include conversion between a fiat currency and a cryptocurrency, between pairs of cryptocurrencies, payments (by the seller) for B2C purchases, and cryptocurrency transfers (by the sender). Every exchange between a fiat currency and a cryptocurrency also requires that an amount of XBX corresponding to 0.55% of the transaction amount is “burnt” and removed from the total amount of XBX in circulation. A smart contract created on the Ethereum blockchain will record the fee for every transaction, the equivalent amount of XBX removed from circulation and provide the current amount of XBX in circulation. Given the expected amount of XBX in circulation after the ICO, it is anticipated that the supply of XBX available for the continued use of the EZBITEX platform will last many decades.
Loans
Consumer loans will be denominated in and paid out in XBX tokens. For collateralized loans, the loan amount will be based on the current exchange rate on the EZBITEX platform for the cryptocurrency offered as collateral . Consumer may repay the loan balance (and regain the collateral) using XBX tokens.
BENEFITS OF THE BITEX CRYPTO-BANKING PLATFORM
Consumers
The EZBITEX crypto-banking solution requires consumers to maintain their own crypto wallets (the Holding Wallet) on their mobile devices. No private keys for this wallet are shared with the EzBITEX platform. A truly decentralized way of storing the other customer wallets (Payment Wallet, Trading Wallet, etc.) on the BITEX platform and using the platform only when needed will allow BITEX to ensure that customer assets are safe from hacking or other attacks. Alongside with this, BITEX will encrypt development source code as well as use PCI Standard Certification for security in the near future. A personal, mobile wallet makes the BITEX crypto-banking solution widely available, as recent studies show that mobile penetration is widespread throughout the world and allows a greater percentage of the population in under-developed countries to participate in financial transactions than have access to conventional banking services.
By maintaining control over one’s wallet, and sharing only certain amounts deliberately with BITEX for various purposes such as purchases or transfers, consumers will not have their entire crypto assets under the control of a centralized entity (as is the case with current crypto-exchanges) with all the security risks that it entails. Consumers will not arbitrarily or capriciously be denied the ability to purchase cryptocurrencies in any exchange using credit cards offered by third parties that are “Powered by BITEX ” or their BITEXPay debit cards. EZBITEX as the card processing network will ensure that such transactions are authorized by the card issuer.
Merchants
Merchants have multiple options for receiving payments - via a mobile EZBITEXPay app, QR codes, and card readers. "> Online merchants can add BitexPay as a payment option to their e-commerce portals. Again, for simple merchants (such as street vendors) the ubiquitous mobile device can be the merchant’s receiving wallet. There is no need to have a traditional bank account.
POST-ICO FUNDS DISTRIBUTION
The distribution of the Funds after both phases of the ICO. The funds raised from the sale of XBX tokens that take place during the pre-ICO and ICO phases will be used for the following purposes in the proportions shown:
● 47% will be spent on ongoing development of the BITEX , EZBITEX , and BITEXPay platforms;
● 17% will be spent on registration fees, legal and accounting expenses for building franchises in more regions where Bitex seeks to register its financial services;
● 13% will be spent on marketing ap physical locations (Kiosks and Retailers), the Web (through social media) and using cross-border payments partnerships;
● 10% will be spent on recruitment of a banking team with expertise in the financial industry;
● 8% will be spent on administrative expenses for running Bitex Global;
● 5% will be spent on investment in development of BITEX -related apps and platforms supporting the future expansion of BITEX.
FOR MORE INFORMATION :
Website : https://ico.bitex.global
Whitepaper : https://ico.bitex.global/docs/XBX-Token-WhitePaper.pdf
Facebook : https://www.facebook.com/bitex.global/
Authors : tellysa
Bitcointalk's profile : https://bitcointalk.org/index.php?action=profile;u=1898514
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