Kraken CEO Jesse Powell Says DeFi Is “Eating The World Of Finance”

Kraken CEO Jesse Powell talked in an interview recently and spoke about DeFi and the traditional markets as well as the lack of transparency on the markets as we can see in our latest crypto news below.

The Kraken CEO Jesse Powell commented:

 “Ethereum gives you access to a whole world of decentralized smart contracts, decentralized exchanges, lending protocols. DeFi is really eating the world of finance, whether people know it or not yet. I think 10 years from now, we’re all gonna be doing 90% of our financial services on a blockchain.”

He explained that cryptocurrencies are not the same as traditional equities markets as they require no custodians or middlemen. Because of this, the traders mostly rely on third-parties so they are able to own and move their assets and this system is becoming obsolete with the emergence of crypto:

 “It’s a very different system, and I think it’s a system that is really no longer necessary now that we have a crypto system. And I think we’d be much better off with a bare instrument system where people can take their shares, move them anywhere they want, trade them anywhere they want, and trade directly on an exchange.”

The traditional system is placing the “little guy” at a disadvantage and lacks transparency and allows for other bad opportunities to happen. At the same time, he acknowledged that to apply the advantages to other markets as equities, some renovation of the framework is needed:

 “I think it’s going to be up to the regulators and the lawmakers to allow for this to happen. I mean, there’s technically nothing preventing this from happening today. […] So what we really need is some innovation in the regulatory and legislative space. The technology is there today. I think all of that is eventually coming to equities on blockchain.”

There’s a lot of time for that to happen since most of the people in the world don’t own crypto and don’t even pay attention to them so according to him, we are still in early in the crypto space:

 “And I think just the more money printing that’s going on, 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 their assets, and the ability to do what they want when they want.”