Germany’s Paycer to Integrate DeFi and Crypto with Conventional Banking Services

Payc­er, a finan­cial ser­vices start­up locat­ed in Ham­burg that spe­cialis­es in cryp­tocur­ren­cies and Decen­tral­ized Finance (DeFi), is present­ly cre­at­ing a bridge pro­to­col that would aggre­gate DeFi and cross-chain cryp­to ser­vices and inte­grate them with reg­u­lar bank­ing ser­vices. The pro­to­col, which is expect­ed to be live in ear­ly 2022, will include a suite of unique finan­cial prod­ucts aimed at assist­ing retail cus­tomers in reap­ing the ben­e­fits of the DeFi market.

“Using DeFi may be some­what chal­leng­ing, even for peo­ple in the infor­ma­tion tech­nol­o­gy field. Our objec­tive is to pro­vide retail cus­tomers who have not yet invest­ed in bit­coin with sig­nif­i­cant DeFi returns” Nils Gregersen, Paycer’s chief tech­nol­o­gy offi­cer, explains. “We’re also look­ing for investors who are already invest­ed in cryp­tocur­ren­cy but haven’t yet hopped on the DeFi bandwagon.”

The pro­to­col and plat­form will sup­port a com­plete vari­ety of finan­cial ser­vices, includ­ing cryp­tocur­ren­cy wal­lets, bank accounts, loans, liq­uid­i­ty pools, and, most sig­nif­i­cant­ly, faster access to the lucra­tive DeFi mar­ket. One of the platform’s most allur­ing aspects is its promise of offer­ing very high inter­est rates. This will come as a com­fort to many retail investors in today’s low-inter­est finan­cial mar­ket, as they will be able to utilise the Payc­er pro­to­col to tap into DeFi and cre­ate sus­tain­able pas­sive income.

“Many indi­vid­u­als today are watch­ing their mon­ey pro­gres­sive­ly dwin­dle away due to the lack of inter­est. Indeed, they lose between 2% and 5% of their wealth each year to infla­tion” Gregersen elab­o­rates. “By com­par­i­son, decen­tralised finance pro­vides good inter­est rate pos­si­bil­i­ties with the extra ben­e­fit of not being reliant on banks.”

Due to the known volatil­i­ty of cryp­tocur­ren­cies, some investors may be hes­i­tant to enter the DeFi sec­tor, which is still a rel­a­tive­ly new phe­nom­e­na. How­ev­er, the Payc­er Plat­form will assist con­sumers in mit­i­gat­ing risk by eval­u­at­ing the fea­si­bil­i­ty of new DeFi solu­tions before to invest­ing in them. Addi­tion­al­ly, it will do many checks in advance, auto­mat­i­cal­ly divert­ing users’ funds away from invest­ments thought to be too dangerous.

Payc­er will also pro­vide a util­i­ty token (PCR) as part of the DeFi protocol’s launch, which will pro­duce actu­al val­ue for plat­form users and grant token hold­ers vot­ing rights. Pre-sales of 4% of these tokens are now avail­able (at a dis­count), and a lat­er pub­lic sale of 5% will be held.

Users may receive stak­ing incen­tives by stak­ing PCR tokens on the Payc­er DeFi net­work. Addi­tion­al­ly, Payc­er will rein­vest a por­tion of its rev­enues in token buy­backs, assur­ing con­sis­tent demand – and sta­ble pric­ing – for its main cryptocurrency.

“Payc­er believes in a con­trolled imple­men­ta­tion and col­lab­o­rat­ed with a pro­fes­sion­al blockchain legal firm to cre­ate the PCR util­i­ty token in com­pli­ance with exist­ing Ger­man finan­cial leg­is­la­tion. Addi­tion­al­ly, the token was sub­mit­ted for assess­ment to the Ger­man Fed­er­al Finan­cial Super­vi­so­ry Author­i­ty (BaFin) “, accord­ing to Gregersen.