1. What is the Bank of Hodlers?

The Bank of Hodlers aims to provide its users with a customer-centric banking solution on the blockchain. We intend to treat your cryptocurrencies as a separate asset class and offer services to ensure technologies based on blockchain are usable as of today, negating the need for nation wide acceptance and government acceptance for them to disrupt the banking sector.

2. What are your products?

We facilitate lending and borrowing using your crypto as collateral, and a wallet to store your crypto on the same platform. We currently provide the following cryptocurrencies for storage - Bitcoin, Ethereum, True USD and Dai. We intend to add 10 more major tokens very soon.

3. Who is on the team?

Darshan Bathija (the CEO) and Sanju Sony Kurian (the VP of Tech) are the co-founders at the Bank of Hodlers. You can view the entire team here.

4. Why are you trying to replace the current banking sector?

The banking system as of today go out of their way to ensure their services are easy for us to use, we have to admit this. They don’t do a good job at keeping our data safe or with them. Equifax’s business model is to sell our data, when they aren’t being hacked, that is. All our financial data is unfortunately for sale. We trade of privacy for convenience.

We hate sellouts. We intend to facilitate the same amount of convenience, if not more, with the absolute commitment towards data privacy and security. We do this by being an end to end blockchain company – protecting your data by not having access to it in the first place. It would be encrypted and stored on the BoH chain.

5. How are you achieving Satoshi’s vision

Satoshi Nakamoto set out to make a world-wide currency acceptable by everyone. He set out to ensure money and payments are independent from the responsibility (try irresponsibility) of any Government in particular. He set out to achieve financial freedom for everyone. He set out to achieve a safe and transparent way for people to store and use their wealth without interference, because “experts” don’t really have your best interest in mind.

We’re the missing part of Satoshi’s vision because:

  • Our payment solution works in every country – without restriction.
  • Our solution is country independent.
  • Our solution gives you a truly safe and transparent way to store your wealth without interference.
  • Believe in crypto, but you need cash

Don’t want to sell your coin but have that unexpected payment? No problem! You can instantly avail a line of credit and pay it back when you can while still holding your crypto. There are multiple ways you can do this. If you need a line of credit against a credit card, you can use the overdraft option and just swipe your card. If you think you’ll need credit for three months or more, just use the p2p borrowing option and choose whether you’d like to directly borrow in FIAT or in a cryptocurrency of your choice – as simple as that.

6. Why are you the bank of the future?

Our roadmap starts with cryptoassets which transitions to all digitized asset classes. All of this would be facilitated and maintained on the blockchain since its the centric technology of our company. Once we facilitate the suite of services that a typical bank does, we will replicate these to all digital assets. That’s how we’re truly positioned to be the bank of the future.

7. How will your insurance instrument work?

We will be able to facilitate insurance of coins stored:

  • In your Bank of Hodlers wallet
  • In a reputed exchange that gives us REST API access

Once we verify the total amount of coins in the wallet, we would have a way for a user to pay monthly/yearly insurance fee for their coins. As simple as that. We will continuously audit the security of the exchanges to place them in risk brackets which would, in turn, determine their insurance fee. Once the insurance is purchased, we would ask the user to share an alternate(and safe) wallet address for us to deposit the claimed cryptocurrencies in case of theft.

8. How are you a decentralized bank?

All of our services, databases and client information are going to be stored on the blockchain - ensuring their data is protected. The peer-to-peer lending and insurance products are written on smart contracts and not tamperable. This ensures that we’re completely transparent and community driven by design. We are the bank for the people and by the people - we’re building a bank that’s designed to thrive on community engagement and happiness.

9. Why build a bank on the blockchain?

Banks are traditionally the middle men, controlling the flow of capital. When you want to lend, you lend to the bank at 1-5% per year. And when you need a line of credit, you borrow at 7-20% per year. Everything in the middle is retained by banks as “management fees” - funding their exquisite lifestyles.

The only reason people were willing to pay banks the huge fees was because there is a significant trust that the bank will pay your money back. They, along with the associated regulatory bodies that fall under their purview (The Federal Reserve, and its equivalent in every other)

The exact value add of the banks is what blockchain adds as well - trust in the system. Banks derive their trust from being associated with a central government and using the nation currency. Blockchain derives its trust from people adopting it - it’s the epitome of the economy of trust. This trust is far more reliable than the mandate of a government - just look at Venezuela, Argentina & Zimbabwe in the past.

The primary services facilitated by banks are:

  • Safe storage of money
  • Instantaneous and easy payments
  • Means to grow unused capital

These can all be facilitated through smart contracts - effectively removing the need to be dependent on a centralized banking system. The decentralized bank is exactly what we’re building.

10. Why asset-backed crypto only? Why not other digital assets?

We intend to first facilitate the services - using cryptocurrencies as the underlying - because of:

  • The wide acceptance of them across borders
  • The ease of starting to do business

The big picture is to move into other digital assets over time - hopefully in the next 12-15 months.

11. What’s the pain point of the market? And How are you solving it?

The major pain points for a cryptocurrency investor are:

  • The price volatility associated with the coins
  • The regulatory uncertainty associated with hodling and mining
  • Risks associated to the exchanges or your wallets being compromised and you losing your entire savings.