Listening to a recent episode of Real Vision, Raoul Pal spoke with Bill Barhydt about the future of Crypto banking and it was a fascinating discussion. Raoul Pal at one point talks about someone who sold Bitcoin and converted into USDC and realized they didn't have to go back to a bank. I've recently come aware of the same and asked myself, why do I need my bank?
To be fair, my bank is an amazing institution that have provided me financial services for a very long time and I've had several loans that I've paid off over the course of my time with them. I have a great working relationships with them, but to be honest they do not provide me any value add that I can't get from Digital Assets that I now own.
With the advent of platforms like Abra, Celsius, BlockFi, Voyager, etc - if a person have done well with investing and trading Digital Assets - can they truly "Unbank" themselves? With Square providing an account and routing number, BlockFi and Gemini providing Credit Cards - what purpose does a bank serve?
I was talking with someone recently and they were attempting to purchase a home and they were going to self fund the purchase but the seller was asking for a "Proof of Funds" which is normally provided by a bank. It will be interesting to see if Crypto platforms like the ones mentioned above can provide those type of services as well and if people will recognize Digital Assets as viable funds.
The world of finance is rapidly changing and I would think that in the next 3-5 years, banking will surely be reimagined. I do believe Digital Asset platforms will be able to replace banking because for me - 90% has already been replaced.