The global financial industry may be entering a new era. David Sacks, the White House ‘crypto czar’, revealed that traditional banks and crypto companies will eventually merge into a digital asset industry despite previously being considered impossible.
Speaking from the World Economic Forum (WEF) in Davos, Sacks said that the matter is just waiting for one important thing: the approval of the long-delayed US crypto law.
The law aims to set a clear market structure for the crypto industry in the United States.
However, there is one big issue that is slowing everything down: stablecoins and ‘yields’.
Debate has arisen over whether stablecoin issuers should be allowed to give returns to users.
Banks are concerned that it will compete with traditional deposits, while the crypto industry sees yields as the heart of innovation.
According to Sacks, all parties will have to compromise. He said that after the law is passed, banks themselves will fully dive into the crypto world, including issuing stablecoins.
However, when that happens, banks will start to like the idea of paying yields because it becomes part of their business model.
So, there is no more ‘banks vs crypto’ and the future of finance is a digital asset industry, and that change may be closer than you think.
