Cryptocurrency Financial Advisors

The OCC Claims DeFi Will Soon Replace Traditional Banking

Current Comptroller of the Currency and former Coinbase Chief Legal Officer Brian Brooks claims that decentralized finance (Defi) will soon replace the need for traditional banking services.

At DC Fintech Week on Oct 19th, Brooks stated that a financial future governed by permissionless, autonomous financial technology is not far away. At the rate that Defi is moving, Brooks claimed, “decentralization is very likely an unstoppable force out t here. Decentralized networks, by definition, are cheaper, faster, and more resilient than any kind of centralized structure.”

Brooks compared Defi’s momentum next to traditional banking with email’s disruption of the postal service, adding “with email, we don’t need aggregation anymore – we can do it directly with each other.” Just as email removed the need for third party mediation of communication, Defi allows individuals to perform financial services directly with each other through the algorithms within decentralized networks. Brooks stated, “It is possible for you to just go online and say, ‘Hey, listen, I’ve got $10,000 here and I’d like to earn five percent’… and the algorithm will find someone who does and all of a sudden there’s no longer a value in the bank aggregating all of that money together.”

As opinion-leading individuals like Brian Brooks of the OCC spread the word on what the future of finance will look like, this should not be Armageddon for banks. Rather, to stay afloat in an ever-changing world, Banks must adapt and adopt the momentum of fintech innovation, especially as it pertains to the promising future of blockchain technology and cryptocurrencies. If banks want to survive, they must take part in pioneering the future of blockchain technology.

By Liam McDonald

Disclosures: Not investment advice. It should be assumed that Sarson Funds or its affiliated managers hold positions in all projects that are discussed. It is not possible to invest in any project directly through Sarson Funds, Inc. or its affiliated managers. Any investment product offered by managers affiliated with Sarson Funds should be assumed to be only available to Accredited Investors and subject to the individual terms and conditions of that offering including but not limited to those eligibility requirements associated with U.S. Securities Regulation D, section 506c. Talk with your financial advisor before making any investment decisions or have them contact Sarson Funds directly at [email protected]

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