Safe Cash Payment Technologies has raised $1.12 million from major technology and business investors, including Bialla Ventures, InfoSpace founder Naveen Jain, veteran trader Vuk Bulajic, Vinh Vo and founder Chris Kitze.
According to the startup, the Safe Cash platform will enable users use their bank cash as a digital asset, preserving the privacy and universal acceptance of cash as well as adding the security and digital portability of cryptocurrency.
Chris Kitze commented:
Trillions of dollars are transacted in cash globally each year representing 85 percent of all global consumer transactions. Instead of asking how to make a digital token like bitcoin more globally accepted, we’ve taken the universally accepted currency of cash and made it digital.
Initial partner banks will be announced in the last quarter of 2015, with the platform set to go live shortly thereafter. The platform will utilize digital wallets with end-to-end encryption, available on iOS, Android and other mobile platforms. Following a legal and straightforward fact-pattern, cash stays in the bank while consumers spend tokens as freely as if they were cash, swapping them for local currency at partner banks whenever they desire. The Safe Cash system will eventually support euros, U.S. dollars and other fiat currencies.
While this is a boon to consumers, it is first and foremost a fully compliant, legal banking product. Safe Cash is a secured digital payment system that enables banks to do things they can’t do now. Consumers and merchants will greatly benefit from person-to-person e-commerce, store of value without digital asset fluctuation risk, and eventually, cross-border payments and remittance.
Kitze, an entrepreneur who has created companies with more than $8 billion of market capitalization over his 25-year career, was on the IPO team of Lycos, and the founder and CEO of both Xoom.com and NBCi, created through the merger of Xoom.com and Snap.com.