Kumar started the session by thanking everyone who joined the AMA, and those who submitted their questions in the form. We believe the AMA was very useful to all and we wanted to also give the latest updates to the rest of the Cashaa community who couldn’t make it.
Carl Jolley: How long does Cashaa intend to run the staking reward program?
Kumar: The staking reward program started in June 2019, and there is no end date of the program. It is different to other reward programs done in the crypto industry; here staking is done so that users can take advantage of the Cashaa banking services and use the tokens. Those users who are staking to get the banking services also get the rewards in tokens which again can be used in the platform itself. This is the reason to do the quarterly bonus, it can not be mistaken as a dividend. CAS as a utility token can not give any kind of dividend, you need to use the product and so it can not be run in a way that you only hold tokens and get rewards.
Feri Nur: What are some milestones to look forward to, what may be the challenges in the future and how do you plan to answer them?
Kumar: We are proud to be one of the projects that started during the peak of 2017 ICO boom, and we took one of the most difficult tasks, to convince regulators that we can do banking which is highly regulated, in a clean and safe way, and can bank businesses that are struggling.
Today, for Cashaa the biggest challenge is operation management, for which we are taking a number of steps.
Other than that, we are working to enable US businesses and provide USD accounts, where we have a good chance to be able to do so from the end of October or November. The partner would be Metropolitan Bank in New York which is licensed all over the US and is banking major crypto businesses already. We are now working to build a unique solution for our business customers from the US.
The second milestone we are working on is EUR accounts, which we are targeting in the next 3-4 months.
Verose: Why is the name of our project Cashaa?
Kumar: Cashaa was started in 2016 and originally wanted to compete with Western Union for cash transfer to Asia and Africa. Our name consists of cash and a double-A, which stands for Asia + Africa. However, at the end of 2016, with the demonetization in India and a further decline of cash use, while digital payments and use of blockchain technology are increasing, we worked on transforming Cashaa from a cash transfer company to a full-fledged banking solution provider, until we finally enabled our first business customers in May 2019.
Bhim: What are your goals?
Kumar: We see ourselves as a next-generation banking platform open for everyone who wants to join the crypto revolution. We want to build one infrastructure to solve the banking challenges for eventually all underbanked industries.
Bhim / Heomapu Phuong: How did your team deal with the technical challenges of the initial launch of this product?
Kumar: We learned from our mistakes, found the right partners, found the right supporters, and made sure to never compromise on compliance. There were not many technical challenges, all were more operational challenges.
Cezo/ Drake Mazeola: What factors may drive the price of CAS?
Kumar: Only the demand for our solution can drive up the price of CAS token. As a company, we are not interested in any other move that may impact the price or volume. A price peak time of BTC, ETH and other tokens can also impact the price of CAS, but as a company, the only thing we can do is to ensure to have a smooth product that solves existing problems and enables CAS holders to access these products.
People can buy tokens based on their own agenda, but CAS is nothing else than a utility token, which is also very clearly stated in our terms and conditions.
Vocongnga: What about new exchange listings?
Kumar: We do not plan new exchanges in the coming quarter as our focus will be to make operations smooth, but after that, we are open to new listings.
Sean Chin: Why can’t you make staking versatile and simple, like other tokens?
Kumar: Staking is primarily product-driven and can not be mistaken for anything else. Staking amounts are always linked with the product, the plan you have chosen. You can’t stake tokens just to get the reward. Second, Cashaa does not control the staked tokens, we do not have centralized staking unlike other programs, but staking directly on the Binance chain. This makes the entire process more transparent, everyone can see how many CAS tokens are staked until when.
Paul Roth: Can you tell us which customers are onboarded so far?
Kumar: We have non-disclosure agreements with clients, we are giving bank accounts, we can not disclose any details. If a business wants to give this information itself, fine, but we need to follow privacy requirements. We have so far 29 rejections, an increase of 2 since the last AMA (while we still have onboarded 23 businesses so far).
Among the 600 business registrations, there are around 183 businesses outside Europe, roughly 70-80 wallets, 12-14 exchanges, and we are working on more details on which kind of businesses registered so far.
Paul Roth: What is the status of hiring and how much will relationship managers be able to handle?
Kumar: We initially planned to hire 3 relationship managers, we onboarded one person so far from another bank who will join from 1st October.
On 31 August we have also formed a pre-compliance team. Both initiatives should speed up our onboarding, we are targeting 45-60 businesses a month once we have all 3 relationship managers hired.
During hiring, we realized that no matter from which side we are trying to hire – banking or crypto, we have to teach them the other part. Once relationship managers will get more mature, we will see an increase in the number of processed applications.
So far we have rejected 29 businesses, but since we built the pre-compliance team, we are checking their applications again, see which mistakes have been made, we are forming a template which new joinees can follow, and will give the chance to re-apply. Most businesses are related to crypto, such as brokers, exchanges and wallet providers. We also want to develop a process including a test through which we identify the level of risk understanding of our applicants.
We expect at least 15-20 new businesses to get onboarded with our new process until October.
Dipankar Roy: What about future business customers from the Binance ecosystem?
Kumar: As we moved to the Binance ecosystem, we gave benefits such as cheaper services to other Binance companies compared to businesses that are not part of the network. However, they have to go through the same onboarding process.
Paul Roth: Where are we with our roadmap?
Kumar: We are pretty much on the roadmap and are trying to see how we can prepone the items. Most challenges are non-technical, and the roadmap was built from a technical perspective. The only challenge was that once we went live, operations became a bottleneck, which we are working on.
Random Member: When you start banking US customers, will it be businesses and individuals, and also high-risk industries?
Kumar: We again will be focused on businesses, which brings more revenue for less cost compared to individual customers. We will target crypto businesses first, and once we have strong operational processes, we will go after other industries. On 27-28 November, we will have a booth at the Sigma iGaming Conference in Malta to start having a presence in that space.
Random Member: What about cannabis, which is legal in some US states but still illegal on a federal level, so a lot of cannabis companies are having trouble to get banked. Will you target these companies to bank them?
Kumar: Yes, although we have not closed a banking partnership for the USA yet, we have several options for partnerships in the US. Most likely we are considering going with Metropolitan Commercial Bank in New York, we’ll be able to bank businesses from the whole US.
Mukesh Bhati: In the last 8 days, an online quiz is running on your Twitter. What are the benefits?
Kumar: The benefit of the quiz is to educate users about the products and services which are live today, what the value is which you get if you have signed up and if you are a token holder.
After the quiz, we will evaluate and see how we can run the next such initiative.
Mukesh Bhati: What are the key features of the token on which base you attract new users to the project?
Kumar: Day 8 and 9 are totally focused on the token and its benefits. We encourage everyone to read the questions and answers to get the updates.
Divyanshu Dubey: Any update on Indian regulatory news and how it can impact Cashaa short or long term?
Kumar: Going through the new paper written by the same committee which last time was negative, it has now changed its tone from negative to neutral to positive. We have seen the change very fast, although it is not possible to comment on the time, all the questions may be answered in less than a year.
Until then, the more difficult the situation, the more it will be an opportunity for Cashaa. If you are in India, you can get incorporated in the UK or Europe and get our banking and other services.
We also started this for our other non-European customers such as businesses from New Zealand or Hong Kong who wanted to apply for card processing.
Ramesh: Are we really offering an account limit of 1 billion GBP, as its limit given by big banks?
Kumar: It is possible, you can apply for a 1 Billion GBP limit. If you go through our tier-based pricing in our fees and limits section, you will see that we enable limits of up to 1 Billion, as well as the fees required.
Random Member: When will be the next Coinmarketcap banner ad?
Kumar: We are not planning new banner ads until the end of October as we have a lot of onboarding work to do, so currently we do not see a reason to run another ad. Every banner ad gets us 60-80 new businesses, so it is not beneficial to run another ad as long as we haven’t worked through the existing applications yet.
Random Member: How likely is the partnership with the new banking partners?
Kumar: Compared to when we got our first banking partner 10 months ago, we now are not a newcomer, but as we have hundreds of valuable business users, partnering with us is now an attractive business opportunity for both sides, so we are confident on the new partnership. Now over the next 3-4 weeks, we will have the technical discussion.
Random Member: What about businesses that are not onboarded yet?
Kumar: We are aware that businesses are looking to get banked every day, they will not wait for months. However, we do not see it as a lost opportunity as there is at the same time a big influx of new signups.
Random Member: Is it possible for us to get delisted from Binance DEX?
Kumar: It is very unlikely, one of the advantages of Binance DEX is that the listing went through the validators, and a token can not get delisted only if 2-3 people want that. It’s only possible if the entire community wants us to be delisted in case we would have done something seriously wrong.
Sia Chik Foo: I have staked 50,000 CAS till September 2020, can I change the date?
Kumar: We do not have centralized staking, it is not controlled by Cashaa or Binance, so the date can not be changed.
Agus Satria Hartadi: What about crypto price fluctuations?
Kumar: We use the Kraken API, so if someone tried to convert between BTC and fiat, the risk is not on Cashaa’s side, but Kraken’s.
Random Member: What’s the financial status of Cashaa?
Kumar: Based on our burn rate, we have enough capital without raise for the next 18-24 months starting from today, although we are also considering a raise in Q4.
Ramesh (Live Member): Why did we move our HQ from Estonia to the UK?
Kumar: As a banking application based in the UK, we benefit from the UK’s high reputation which is more attractive and trustworthy for businesses to bank in, compared to Estonia.
Random Member: What is the impact of Brexit on us?
Kumar: We are providing UK current accounts to businesses, which in the case of Brexit will not change. After Brexit, whether you are based in Hong Kong, or Estonia, it does not matter, in both cases you will still get a bank account.
If Brexit turns out not in favor of the UK, regulations in the UK may get more lenient and easy to work with.
Oidiotso: Does a Cashaa UK current account support multiple payments incoming from customers on LBC or Paxful or similar platforms. Also, can I make payments to buy crypto from traders and sellers on LBC using my account?
Kumar: Yes, you can.
*Random Members are community members whose real name was not asked/known during the AMA.
Make sure you also join our next AMA with Kumar, which will take place in the Binance DEX Telegram group, 12 September, 3pm UTC! Join here: https://t.me/BinanceDEXchange
The Cashaa Team