The advent of cryptocurrencies like Bitcoin and Ethereum has made it clear how much traditional markets lack transparency and that they are working against the „little man,“ said Jesse Powell, CEO of Kraken crypto exchange.
“Immediate Bitcoin gives you access to a whole world of decentralized smart contracts, decentralized exchanges, credit protocols. DeFi is really eating the world of finance, whether people know it or not. I think in 10 years we will all do 90% of our financial services on a blockchain, ”said Powell.
Lots of opportunities for bad things
He comments that cryptocurrencies are very different from, say, traditional stock markets that require so many middlemen and custodians. Because of this, traders have to rely on third parties to technically own and move their assets – and this system is quickly becoming obsolete with the advent of cryptocurrencies.
“It’s a very different system, and I think it’s a system that really isn’t necessary now that we have a crypto system. And I think we would be much better off with an instrument-only system where people can take their stocks, move them wherever they want, trade wherever they want, and trade directly on an exchange, “ so Powell.
In addition, the traditional system disadvantages the „little man“, there is a lack of transparency and there are „so many opportunities for bad things“, according to Powell.
Industry still at the very beginning
At the same time, Powell acknowledged that applying the benefits of cryptocurrencies to other traditional markets, such as stocks, would require some overhaul of the regulatory framework.
“I think it will be up to regulators and lawmakers to let this happen. I mean, there is technically nothing that prevents this today. […] So what we really need is some innovation in regulation and legislation. The technology is here today, „he said, adding,“ I think all of that will eventually come to stocks on blockchain as well. “
Fortunately, there is still a lot of time for this, since most people in the world do not have any cryptocurrencies and are a bit away from buying Bitcoin cheaply , so „we are still extremely early in this area,“ explains Powell.
“And I think the more money is printed, the less trust people have in governments, the less trust people have in the financial system, the stock market, the more they will look to the crypto markets where they have complete transparency , full custody of your assets, and the ability to do what you want, when you want. „