- Daniel Masters, in an interview with Forbes, announced that Blockchain would be the end of traditional banks.
- Mr. Masters was a commodities trader at JP Morgan but is now chairman of CoinShares, a niche exchange-traded bitcoin note provider for Europe.
- His career pivot and declaration legitimizes the crypto industry for many investors.
Blockchain predicted to take down commercial banks
In an interview with Forbes released earlier today, JP Morgan Veteran announced that Blockchain would lead to the fall of most banks. Daniel Masters is now an executive chairman of CoinShares, a provider of the only exchange-traded bitcoin note in Europe.
Mr. Masters’ career switch from working as a commodities trader and statement legitimizes the cryptocurrency industry for many investors.
He said:
“I think we are going into a new paradigm where central banks issue CBDCs, commercial banks cease to exist and the service layer is filled by crazy new emerging companies like Compound Finance, Uniswap, SushiSwap, and people that are really getting distributed, decentralized finance done today.”
Daniel Masters – Forbes interview
The reasons Mr. Masters believes commercial banks are destined to fail
- Having too many service providers for one asset has become cumbersome in the digital age.
- Centralization stifles innovation because it is inaccessible to investors
He painted the picture that Blockchain enables people to do what cannot be done via commercial banks. Blockchain allows people to self govern their borrowing and lending transparently and remotely.
In the interview, he explained that even the US would be forced to take on China’s digital dollar by forming its own cryptocurrency. Mr. Masters suggested that once Blockchain takes over, crypto providers will compete over who is customer-facing.
He explained that a company that is ahead of the game would be blockchain.com with their wallet infrastructure. Mr. Master does not believe he alone has the power to take down commercial banks but the innovation in the industry as a whole.
During the interview, he raised Compound Finance, a peer-to-peer lender that is not centralized, as an example of excellence in the crypto-industry. Compound finance has taken the world by storm because they are managing billion-dollar assets.
