The first physical bitcoin deposit and financial services portal, known as Neo, has officially opened its flagship branch in Cyprus. This establishment, which operates as Neo’s banking division, aims to provide Cypriot residents with access to various financial services related to Bitcoin. Users can interact with their funds similarly to traditional Euro deposits in traditional banks, including deposit, savings, business, and merchant accounts.
Neo holds customer deposits in full reserve, denominated in Bitcoin (BTC). Customers can choose to use either bitcoins or Euros and can opt for Euro-pegged accounts with fiat value limits or those offering full exposure to Bitcoin’s price fluctuations. Neo’s approach allows the public to experience the benefits of Bitcoin without the concerns related to wallet security or online service vulnerabilities. Customers can also have face-to-face consultations with service representatives.
Furthermore, Neo mitigates the risk for customers exposed to Bitcoin price fluctuations by offering time-locked accounts that guarantee a certain fiat value even if the price of Bitcoin drops. The company benefits if the Bitcoin price rises. Importantly, Neo’s transparency allows anyone to audit the company and confirm that their funds are held in reserve, as Neo’s Bitcoin addresses are available for inspection on the Bitcoin blockchain.
Neo’s approach can be summarized as a physical Bitcoin wallet or a banking service that simplifies transactions while keeping customers’ funds secure. Notably, Neo does not engage in lending activities.
In addition to Neo, there is Bee, which functions as a bitcoin-based debit card system. Bee offers merchant terminals, cards with EMV chip and PIN technology, faster settlement processing times, lower fees, and no chargebacks. While Bee is a separate business entity, it operates under the same umbrella as Neo.
Both Neo and Bee comply with banking laws and regulations but operate independently of the European Central Bank, making them attractive options in Cyprus, particularly after the 2012-13 Cypriot Banking/Financial Crisis.
Neo & Bee initially launched an IPO on the bitcoin equities exchange Havelock Investments in September 2013. As of the latest information, it had a share price of 0.00328 BTC and a market capitalization of 9016.0102 BTC (equivalent to $5.21 million at the time). While the services were initially available only to Cypriot residents, the company had plans to expand throughout the European Union. Additionally, Neo & Bee had intentions to open a second branch in Cyprus in the near future. The company aimed to generate revenue through value spreads, a trading desk, and long-term Bitcoin investments, similar to other payment processing companies like Coinbase and BitPay. CEO Danny Brewster also expressed interest in exploring blockchain-based applications beyond Bitcoin, such as autonomous legal contracts and derivatives, with a vision to transform Cyprus into a hub for blockchain businesses.