Oct 21, 2020 05:08 UTC
Oct 21, 2020 at 05:08 UTC
The U.S temporary comptroller of the currency trusts the part banks play in society will rapidly be distorted by crypto assets & DeFi.
The U.S temporary comptroller of the currency, Brian Brooks, forecasts the decentralized finance will reduce numerous of the financial services accessible by banks outdated, just as email disturbed the postal service.
In an interview throughout D.C. Fintech Week on October 19, Brooks foretold a not-too-distant upcoming in which distributed ledger technologies arbitrate financial services, creation the bequest banking sector’s important role as ‘central ledger-keeper jobless.
‘We […] see a future where decentralization is very likely an irresistible force out there. Decentralized networks, by definition, are inexpensive, faster, and more resilient than any kind of centralized structure.’
Previously the chief legal officer for Coinbase, Brooks is now the head of the Department of Treasury’s banking oversight bureau. He likened financial institutions’ historical purpose as an aggregator of money to that of the post office’s part as an aggregator of communications, noticing: ‘with email, we don’t need the aggregation anymore — we can do it directly with each other.’
When requested what the part banks will have in society among cumulative creative obliteration posed by stablecoins and DeFi, Brooks says: ‘Human beings need financial services, they don’t need banks.”
‘It is likely for you to just go online and say, ‘Hey, listen, I’ve got $10,000 here, and I’d like it to earn five per cent […], and the algorithm will find someone who does and all of an unexpected there’s no longer a value in the bank aggregating all of that money together.’
Brooks forecasts that banks will last to provide a collection of significant services, with ‘custody of physical assets’ & ‘fiduciary stuff.’
He also imagines banks will familiarize to a progressively decentralized world, forecasting a future where banks & businesses function bulges within blockchain networks, and in which banks perfect their individual stablecoins.