Many people still doubt the ability of a digital bank, especially the ones that are blockchain based and use cryptocurrency. The doubt is very reasonable. Blockchain and cryptocurrency are the two most controversial technologies today. Digital banks such as DCC are still used by certain communities; those who dare to try to get into the technology of the future.
DCC is a digital bank that digitalizes the traditional bank's systems and put some extra advance technologies on them. Blockchain will enhance the existing traditional banking system. DCC tries to eliminate all the things that have been considered a burden for customers. There are various new conveniences and opportunities that will be gained by the users.
DCC users will be able to transact in a faster and more efficient way. Similar to e-banking users, every DCC user can perform various banking transactions using their smartphone, computer, or laptop. Then what distinguishes DCC with e-banking services? DCC does not limit the maximum number of transactions in a day. Users can transact according to their needs; no matter how many. This will obviously make it easier for someone who often transacts in bulk. Limiting the number of transactions on traditional banks is actually done for security reasons such as account break-ins and money laundering.
Mechanism
DCC is basically created as a credit bank where the user can become a debtor or creditor. Loan mechanisms are governed by smart contracts and a set of rules that will ensure that loans will be granted only to those who meet the requirements and not harm the creditor.
The creditor will determine the debtor himself (after receiving the recommendation and verification of user data by DCC). Debtors and creditor can come from anywhere. This is one of the main advantages of DCC. As an online platform, DCC users will come from any country. This gives more opportunity for someone to get a loan.
Loans will be determined through some basic requirements (same as traditional banks), the difference is in the warranty. The debtor does not need to provide any guarantee. Concepts like this are already owned by some online credit platform. DCC also imposed short-term loans that would reduce the risk of creditors' losses. This platform will use the DCC token as the primary transaction tool; this means that the debtor will receive a token instead of money (fiat). There will be 10 billion tokens and 200 million of them will be sold in ICO. There has been no information on the timing of the ICO implementation or the exchange rate of the token.
Target market
The main target of this platform is Southeast Asia. DCC is aware that developing countries will become a potential market. The high demand for venture capital is one of the main causes that make developing countries a potential market. To anticipate the high interest of users in these countries, DCC also involves several financial institutions that are able to lend large amounts of funds. The platform will also be a good investment vehicle.
DCC enables business cooperation among users. The return mechanism will be the profit-sharing business of the debtor. Banks like DCC are a high-risk technology. Every user (especially a debtor) should be aware that such a credit model has a high risk of loss.