Ouriel Ohayon is the CEO and co-founder of ZenGo crypto wallet.
We do not have many opportunities to speak about crypto, so I hope this will somehow reach you. It is time to have a meaningful conversation about both our worlds. I hope we can leave aside hostile arguments and unfounded beliefs and start a real conversation.
My message to you is simple: We need each other to build a brighter future. Crypto is not going to bury banks. On the other hand, banks are not going to be able to sustain their longtime approach to finance without adopting a new and radically innovative approach.
See also: Alex Mascioli – Don’t Expect Banks to Jump on the OCC Crypto Custody News
What is broken
The industry of finance and, in particular, that of remittances and money markets requires a digital-first approach. Pay close attention to your customers’ demographics. The latest generations live on their mobile screen and want everything here and now. Millions of people, including in the U.S., do not have access to modern banking services. In Latin America and Africa the trend is even more extreme.
In an era where electronic money can be sent at the speed of light, your customers are suffering unfair fees, delays and sub-par web services. This has led to the birth of an entire sub-industry of neo-banks (many of which are embracing crypto) that are more attractive to a younger generation in search of natural digital experiences.
As expectations for banking services change, so, too, do the fundamentals of your business model. This is not solely your fault. The rules of finance based on traditional monetary supply and fractional reserves, unchanged for decades, are reaching its limits. You pay the price for unchecked government power to print unlimited amounts of money, accumulating outstanding levels of debt. Someone certainly has to pay for it. Right?
Do not fear
It is natural to fear the new. The same happened 30 years…