All About Monaco MCO (Cryptocurrency)

Now more about the cryptocurrency of Monaco. How has it influenced the crypto market. What is inter bank rate?

All About Monaco MCO (Cryptocurrency)

How Is MCO Defined?

As a payment and cryptocurrency platform Monaco operates its own native currency called the MCO token. Offering Monaco Visa cards, and a mobile wallet app allows users to easily buy, exchange and spend the fiat and cryptocurrencies similar to Bitcoin, and Ethereum at real-time interbank exchange rates. 

What Is The Interbank Rate?

It is the rate of interest charged on short term loans made between US banks. As it borrows money from other banks, ensure they have enough liquidity for immediate needs, lending money when they have excess cash on hand. This kind of interbank lending system comes as short term, typically overnight and rarely more than a week.

It refers to the interest charged when banks conduct wholesale transactions in foreign currencies with banks in other nations. 
How The Interbank Rate Works

As required by federal regulators, banks hold enough cash in reserve to accommodate day-to-day withdrawals from the customers. Generally managed by borrowing to cover any shortfall and lending to earn a modest interest on any excess are the liquidity needs.

As earned on the banks' money, the rate of interest is based on the current federal funds rate. The Federal Reserve in the US sets this and is known as interbank rate or the overnight rate.

As a tool, the federal funds rate is used by the Federal Reserve using it to increase or decrease the amount of cash in the overall system. While a low rate encourages banks to borrow freely, a higher rate discourages such activity. Keeping the federal funds rate at 2.5% the Federal Reserve indicates its intention through 2021 at its meeting in March 2019. This comes as subject to an unexpected change in the global economic outlook.

The board cut the rate to 0.5% in the economic crisis of 2008 that kicked off the great recession and kept it there for seven years encouraging investment and borrowing. By December 20118, a series of modest increases pushed it up to 2.5%. The customer even though it cannot directly take advantage of a 2.5% rate. It is available only to the largest and most creditworthy financial institutions. 

Breaking Down Monaco MCO (Cryptocurrency)

It is the cryptocurrency of Monaco called MCO token traded under the MCO symbol on 19 cryptocurrency exchanges. It helps in making payments at 40 million locations globally. Conducted in mid-2017, the token sale helped Monaco raise $26.7 million. The cryptocurrency has a circulating supply of more than 13 million token and a market cap of around $115 million.

With multiple offerings Monaco include cryptocurrency backed Metal Visa cards requiring varying amount s of token to be held. Essentially backing his card, the user’s cryptocurrency holdings include all Monaco Visa cards coming with zero annual fees, cashback schemes and basic card features. 

It comes with a popular reward scheme that is available with any standard credit card, Monaco cards offer a cashback scheme of up to 2 percent of the crypto spending. The card offers real-time interbank exchange rates with no overseas fees for travel buffs. As Monaco claims these rates offer savings, in the range of 5 to 8 percent compared to real-world banks. Completely free withdrawals from ATMs across the globe and airport lounge access is provided together with it. Monaco attempt to bridge the real world banking and cryptocurrency by asking for cryptocurrency holdings that back the card. 

Monaco offers a powerful multi-currency wallet app supporting the tracking of up to 200 coins along with the ability to buy, exchange and send various crypto coins true to its slogan, “ cryptocurrency in every wallet”.

It is absolutely free to deposit cryptocurrencies in Monaco wallet, cryptocurrency exchange and transfer to other Monaco wallets. Users are charged a varying fee for transferring cryptocurrencies to external addresses. 

With plans to support automated cryptocurrency investing the feature is expected to be launched soon. A low minimum starting investment along with automated investing allows users to build their cryptocurrency portfolio quickly, automate buying and selling, allowing easy withdrawal at all times without any transaction fees. It charges a fee only when a user makes a profit and not on transactions. 

The Bottom Line

Monaco plans to offer a credit of 60 percent and 40 percent worth of the value of user holdings in Monaco MCO tokens and Bitcoin, which is another future offering included as the Monaco Credit Scheme. As an example, if a user holds $1000 worth of MCO tokens, he receives access to $600 worth of credit and in case he holds $1000 worth of Bitcoin, he will be eligible for a credit of $400. This credit is used by the user for spending alone. In short, the holdings in MCO and Bitcoin acts as collateral for Monaco’s Credit. 

As of now, Monaco is owned and operated by Switzerland headquartered Monaco Technology GmbH, with offices in Singapore and Hong Kong. 

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