Revolut is an online financial platform in the UK that provides traditional banking services and cryptocurrency transactions. Because of its convenient registration, currency exchange and offline withdrawals, there are no handling fees and other features, which are rapidly gaining popularity worldwide. In February this year, Revolut announced the completion of a new round of financing of US $ 500 million, with a valuation of US $ 5.5 billion.
Image source: Revolut
- Crypto-friendly fintech company Revolut secures $ 500 million in funding, triples valuation to $ 5.5 billion
British digital bank Revolut has expanded its cryptocurrency products to all its users to replace government-backed fiat currencies. As governments around the world launched stimulus plans, including the printing of new currencies (called quantitative easing), Revolut believes that Bitcoin provides another option because it has a fixed supply.
"In a recent speech, our head of encryption, Edward Cooper, reminded us that during the period of quantitative easing and currency devaluation after the 2018 financial crisis, cryptocurrencies became an alternative to real currencies. With the recent economic downturn, we are now beginning to see quantitative easing and currency devaluation happen again , "Revolut said in an email to customers.
"We originally planned to officially provide encryption products to all customers later this year, but in view of recent events, we decided to give all Revolut customers the opportunity to explore diversified ways, including now using cryptocurrency.
Now, all Revolut standard users can use the service to buy and sell Bitcoin and other cryptocurrencies, and users can hold these coins in the application. Revolut will provide its Gold features to standard users in April. According to PYMNTS data, the application has 7 million users.
Last week, the United States launched a $ 2 trillion stimulus plan to ease economic difficulties. The Fed has been printing money at a rate of $ 1 million per second, and Bitcoin needs 35 hours to issue such a scale.
And the Fed's currency issuance does not seem to end soon. Last month, Neel Kashkari, governor of the Federal Reserve Bank of Minneapolis, stated that the Fed has "an unlimited amount of cash."
INX Managing Director Alan Silbert told Decrypt at the time: "I think that once liquidation, margin calls and complete panic dust settle, Bitcoin will begin to show its strength against unlimited printing."
But there is a trap
Nonetheless, although Revolut's cryptocurrency expansion timing is appropriate and aimed at attracting people in the cryptocurrency community, not everyone is so eager to trade.
According to several Reddit users, there are multiple pitfalls in Revolut's functionality.
A Redditor wrote: "Unfortunately, you cannot transfer cryptocurrencies from the Revolut ecosystem to your wallet, and you cannot achieve the purpose of" being your own bank. ""
Another added that the price premium in the Revolut encryption service exceeds the benefits. They said: "The price of bitcoin is 200 pounds higher than the spot price."
However, one thing that Revolut cannot do is that it cannot print new Bitcoins at will.
This article is authorized to be translated and published by Decrypt.