Safe Cash Payment Technologies has raised $1.12 million from leading technology and business investors, including Bialla Ventures, InfoSpace founder Naveen Jain, veteran trader Vuk Bulajic, Vinh Vo and founder Chris Kitze.
The revolutionary new platform, which is set to go live later this year, is the first to let consumers take cash to a bank and purchase digital tokens which preserve the privacy and universal acceptance of cash, while adding in the security and digital portability of cryptocurrency.
"Trillions of dollars are transacted in cash globally each year," said founder Chris Kitze, "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 Q4 2015, with the platform set to go live shortly thereafter. The ingenious Safe Cash utilizes digital wallets with end-to-end encryption -- which will be available on iOS, Android and other mobile platforms -- and partner banks. Following a legal and straightforward fact-pattern, cash stays in the bank while consumers can spend the 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," said Kitze. "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, a serial 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 founder and CEO of Xoom.com and NBCi (the merger of Xoom.com and Snap.com). His management team includes other technology and finance veterans.