Ethereum and Bitcoin communities commonly criticize banks and their disproportionate amount of financial power. Banks turn on themselves, seeking solace at the bottom of the bottle of poison that is private blockchains.
Banks are not to blame for payments being over-centralized and overpriced. Payments used to be fairly decentralized but then bank’s payments-based revenues started to decline in the mid 20th century.
Feigning fair partnership, it was payment networks that began poisoning the relations between banks and their customers by charging monopoly-like fees.
Now, the magic of the public blockchain can help rid banks of their dependency on credit card companies and other covetous middle-men. Ethereum Cheques is the solution. We revitalize checks with a tech-injection—the public blockchain. Banks remain the key, both legally and operationally.
The main advantage of blockchain-ifying checks is the ease of compliance.
It is said, “People don’t use checks anymore”. In reality: checks still account for roughly 40% in the distribution of payments made to major suppliers in the US.
People still rely on banks to keep track of their finances. If we are going to use these institutions, why not improve them?
Ethereum Cheques helps banks regain their direct role in the payments game while simultaneously improving resistance to abuse via the public blockchain.
You offer Ethereum but aren't banks going to use "private blockchains"?
This same nonsense was on a Xerox memo in the late 80’s when Fortune 500's were talking about "intranet" over "internet." Blockchain is a public domain. Don’t take our word for it, look at R3CEV’s recent defeat.
Nobody uses checks now. Are you really trying to enter the same river twice?
Anybody who googles the issue for longer than two minutes will be amazed at how widely checks are still used, especially by businesses. Not even mentioning that Ethereum Checks are designed to be "checks with no shortcomings".
Will Ethereum Cheques survive the Revised Payment Service Directive to be implemented in EU in 2018 (and possibly similar regulation upgrades in the US)?
Yes, it will. PSD2 is mostly irrelevant and might even help to create services related to Ethereum Cheques.
Checks are way too slow for this digital age, aren't they?
Misleading term. Narrative switching: that is what payment networks are desperately trying to do around payment speed issue. In reality, a payer considers the payment done when the check is signed and sent. Period.
Checks are expensive. Aren't users going to turn away towards newer, less expensive, and fully digital alternatives?
No, they aren’t. (1) Payments market has inelastic demand. (2) Ethereum Cheques makes checks much less expensive. (3) New alternative methods also to be a lot more expensive when actually brought to life. (4) Ethereum Cheques’ advantages will outweigh any non-zero costs.
How can Ethereum Cheques make it any less expensive if a check exists anyway and it goes all along the way from bank to bank?
Insurance principle. Anyone can get sick but not everyone does and certainly not all at once. A new Ethereum token will exist for every transaction. A fraction of transactions will have to actually have images and metadata. A tiny fraction of disputed transactions might even end up settled in paper form. There's a backward compatibility but it is used only when needed.
What if it will not comply anyway?
Where it can potentially comply, Ethereum Cheques has a much better chance to comply compared to any other fiat-over-blockchain alternative. In those countries, where chances to comply instantly are lower, it at least has a shorter path to go.