Centi: Bridging digital money and traditional banking

CoinGeek Conversations

Swiss entrepreneur Bernhard Müller’s app, Centi, built on the Bitcoin SV (BSV) blockchain, is a platform that offers financial services which combine the revolutionary capabilities of digital money with the trust and security of traditional banks.

Centi's creation of the Centi Franc Stablecoin (CCHF), a stablecoin connected to the Swiss franc is a significant achievement for the BSV blockchain. According to Bernhard, the Centi Franc is a "stablecoin of a new category, which is fiat guaranteed". He stressed that this guarantee provides peace of mind, saying, "you know exactly how you can get your money as it is backed by a Swiss bank guarantee."

On this episode of CoinGeek Conversations, Bernhard details the process behind the Centi franc, explaining that for every token issued, the bank provides an equivalent amount of money as a guarantee in the event that Centi defaults. He outlined the steps involved, from contacting the bankruptcy trustee to the bank's role in collecting data and distributing funds. Bernhard emphasized, "you have this guarantee, which is quite unique".

Bernhard also points to the Centi Franc’s capability to handle micropayments, not just for trading between cryptocurrencies. "It's a direct-to-consumer stablecoin," meaning that users don't need to have large amounts of money to interact with it. Bernhard aims to get more people, including developers and businesses, to use Centi Franc.

Presenter Charles Miller suggested that the Centi Franc represents "genuine digital cash." Bernhard agreed and pointed out that when you use cash, you don't have to share your ID or leave behind any digital traces, as opposed to other financial transactions, such as with banks, where you need to share all sorts of personal information.

Centi does not rely on loans from banks, instead, it front-loads the money. This not only minimizes the bank's risk but also ensures Centi maintains sufficient reserves. The Centi Franc's real power is in its versatility. As Bernhard points out, "If you want to have a Swiss franc that's ultra-versatile and can be used for micropayments...that's not something you can do with money in a bank account because it's not cash."

Bernhard also unveiled Centi's merchant list, highlighting its growth. He explained that consumers can directly pay merchants, and Centi's competitive pricing is one of the reasons merchants choose to accept it. It’s also good to note that the absence of chargebacks and faster access to funds is an added advantage to merchants of Centi.

Furthermore, Centi has partnered with Centbee, a wallet provider based in South Africa focused on facilitating cash payments and remittances within Africa. Bernhard described their partnership as an opportunity to create a remittance product that fits well with Switzerland’s unique remittance landscape. Switzerland is a significant source of remittance payments, surpassing even the entire United Kingdom, despite its smaller size. This is due to Switzerland's diverse society, comprised of both locals and international workers, including refugees. Centbee, on the other hand, offers cash, bank payments, and mobile money services in sub-Saharan Africa, and now expanding to countries like Brazil.

Combining Centi's infrastructure in Switzerland with Centbee's offerings, the collaboration aims to create a remittance product that can meet the demands of the current remittance market.

Bernhard Müller's Centi combines the best of traditional finance with the possibilities of the digital age. As he notes, Centi offers its users the convenience of web3 technology while maintaining the familiarity of web2, making it an exciting prospect in the world of digital finance.