A Californian company Safe Cash Payment Technologies has raised $1.12 million for the blockchain-based digital money platform it plans to launch in the beginning of the next year.

Safe Cash Payment Technologies does not “handle any money”, leaving it to their bank partners, licensed money businesses and licensed exchanges.

The company sees itself as a mediator between banks and consumers, providing the latter with the opportunity to buy digital tokens in exchange for cash, using the blockchain technology. 

The tokens will represent fiat currency, each token standing for $1 having exactly $1 stored in a bank, and can be transferred between users the same way as the Bitcoin digital currency.

The Safe Cash Payment Technologies CEO Chris Kitze revealed that one of the purposes of the project is to “remove pain” from transactions with small value, which now have too much friction.

Safe Cash Payment Technologies has no ambition to create a new type of digital currency, but would rather work with the existing ones

“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,” Mr. Kitze explained.

The company is not the first blockchain start-up to have raised a relatively big sum of money this month. In the first half of September more than $50 million dollars were invested in blockchain startups.

Maria Rudina