Money2020 Conventional banks must integrate with blockchain technology
During a captivating discussion at Money20/20, Ripple’s Cassie Craddock, Domin Network’s Ioana Surpateanu, and Kraken’s Kaushik Sthankiya delved into the transformation of blockchain technology and its security implications in the emerging market.
All three panelists concurred on the significance of fusing traditional finance (TradFi) with blockchain technology to comprehend its broader impact and the future of blockchain. Surpateanu emphasized, “Blockchain plays a crucial role in optimizing and captivating consumers in creative industries. The coexistence of TradFi and blockchain is no longer a concept but a reality that will continue to develop.”
Throughout Money20/20, speakers have stressed the importance of interoperability, and Surpateanu echoed this sentiment by asserting that interoperability is key to avoiding fragmentation in blockchains and nurturing innovation.
The panelists highlighted the necessity of centralized exchanges to ensure secure platforms for both retail and institutional customers to participate in crypto trading.
A Year of Momentum for Blockchain Technology
Reflecting on the previous year, the panel delved into the significant growth of the crypto market, particularly in the blockchain sector. Surpateanu reminisced, “In 2017, when I joined Citigroup, the focus was on ‘blockchain, not crypto.’ However, the narrative has shifted back to infrastructure since then. Now, we are witnessing a crypto market cap surpassing $2.6 trillion USD.”
Surpateanu is dedicated to developing a technology that authenticates and validates data across various blockchain layers, enabling users to exchange digital assets for physical ones, such as tokenization. Numerous fashion and gaming companies are intrigued by this technology as it enables them to gather valuable insights and strengthen their user communities.
Sthankiya further highlighted Kraken’s expansion and the evolving landscape of crypto. “Over the past twelve years, the crypto industry has matured significantly. We now operate in 190 countries, offering over 200 tokens for trading. The industry’s safety, security, and regulatory compliance have improved immensely,” he remarked.
Blockchain Revolutionizing Payments and Banking
The conversation then shifted to the practical applications of blockchain in payments. Craddock shared how cross-border payments have become more efficient and faster. “Sending money to Australia is now quicker than initiating an international wire transfer. Blockchain technology addresses this inefficiency effectively,” Craddock explained.
Sthankiya underscored Kraken’s role in facilitating large-scale transactions, highlighting the growing demand from institutional customers for swift and secure movement of significant sums globally. The safety and security provided by centralized exchanges are crucial in meeting this demand.
Surpateanu also offered a critical perspective on banks’ integration with blockchain. “Banks have room to enhance their integration within this ecosystem. Although there are talented crypto-savvy teams within banks, regulatory constraints and a compliance-driven mindset often hinder their progress,” she concluded.
