Blockchain technology has a lot of potential and there have been numerous attempts to make use of it in banking, but it seems like nobody has really succeeded in this matter. Krzysztof Piech claims the sole reason for this fact is that the issue has been approached the wrong way. He says people have tried to apply a new technology to traditional institutions, which is a very difficult process. bBank, short for blockchain Bank, is set out to be completely different - based on blockchain from beginning to end.

According to Piech bBank will not have traditional brick and mortar agencies and all exchanges between the bank and its customers will take place using blockchain and a new form of electronic currency, the kryptozłoty. Polish currency transferred to bBank, for instance from the customer's employer, will be exchanged into kryptozłoty. Blockchain will also be used for all correspondence between the bank and its customers, as well as for all of the bank's internal processes.

Related: Polish banks want to use blockchain for customer communications

The customers will be able to make instant transfers 24 hours a day, seven days a week, use traditional payment cards, take loans, open savings accounts etc. bBank, just like most banks known today, will make money on the difference between deposit and loan interest rates. Low operational costs are supposed to give it high profitability. Slight to non-existent risk of the documents placed in a distributed database being forged is presumably going to minimize the risk of the bank falling victim to cybertheft or even going bankrupt.

Piech's vision is, however, not welcomed by the Polish regulator, which is why he is planning on opening his new bank in Lithuania, a country which is more open to such innovative initiatives. A license application is to be submitted next month. Piech is assuming that, given the regulatory risk, bBank will also apply or a license in other countries, such as Switzerland, but will operate internationally and be able to offer its services to customers in Poland as well.

The only problem left is financing. Piech claims to have three Polish investors who can shell out 50 mln zł for his project. But he says he will need at least twice as much to start up the bank. Piech hopes that he will be able to get the money with the involvement of several well-known managers with successful experience in banking, who have expressed interest in the project. Their participation will also guarantee the bank's business success, he says. However, bBank's founder does not want to reveal at this time the names of the investors who already decided to invest his project or the bankers who are planning to support him with their money and expertise.