In a recent interview with The Block, Revolut’s CEO, Nik Storonsky, gave more details about the rumored “Revcoin” and the role it will have in the popular digital bank and how it will involve a form of negotiated consumer trust in Revolut.
In this digital wallet, investors will manage their digital keys and be responsible for storing them properly. Currently the bank has more than 100 executives directly involved in cryptocurrencies.
The cryptocurrency to be launched by the digital bank Revolut will aim to reward customers for their loyalty. According to Storonsky, the reported cryptocurrency, called “Revcoin” by some, will function similarly to Airline Miles programs, in which users receive incentives based on how frequently they are using the service.
Customers may only store cryptocurrencies in a wallet controlled by custodians, where the private keys are managed by third parties, at the moment.
Currently the Lithuania-based digital bank only allows bitcoin withdrawals, while all other cryptocurrencies on the platform must be sold and there is no option to withdraw them to a private wallet.
Storonsky confirmed earlier reports that the digital bank will soon add staking services to reward interest rate, deposits and withdrawals for the other cryptocurrencies it supports, as well as cryptocurrency lending.
Currently, the startup bank supports the trading of more than 60 cryptocurrencies.
However, Revolut’s until recently head of cryptocurrencies left the company in less than six months. Jean Meyer joined Neo Bank last September as part of Revolut’s first acquisition of the start-up Wanted, which was active in the job search market.
The digital cryptocurrency wallet will operate both as a separate standalone app and as a module within the Revolut app. The app already has a plethora of functionality added to the app from pet insurance ,to hotel bookings…
Similarly, support for Non-Fungible Tokens (NFT) is planned, but according to Revolut’s founder, it is not a priority right now. The Revolut creator elaborated on how the wallet will operate, saying it will be comparable to MetaMask. The bank aims to make things as easy for the customer as possible.
He continued, “We want to make sure that consumers can move cryptocurrency exactly as they can with bank accounts. We’ll launch on Ethereum at first, but later we’ll multichain it,” he explains, with Revcoin following suit.
The bank’s cryptocurrency arm faced some regulatory hurdles in the UK as it sought to obtain an anti-money laundering licence from the Financial Conduct Authority (FCA).
It is still on the regulator’s so-called provisional register, along with cryptocurrency custodian Copper and three other firms.
The register is a measure created by the FCA after it missed a previous deadline for licensing activity.
Their fate remains uncertain, but without full registration they could theoretically be forced to cease cryptocurrency-related activities in the UK.