Will crypto kill the big banks? Crypto lending and credit certainly have some advantages over traditional banks, but will they be enough? That’s the topic that the CIS Blockchain Technology Investing conference in Los Angeles is seeking to address with the help of industry leaders.
Among them is Daniyal Inamullah, Director of Capital Markets at Salt Blockchain, Inc. which has introduced asset backed lending to the cryptocurrency marketplace, providing a new level of versatility to digital asset holders. Mr Inamullah is also a Chartered Financial Analyst (CFA) Charterholder from the CFA Institute. Crypto Project Times reached out to Mr. Inamullah to share his thoughts.
Mr. Inamullah, do you think traditional banks are in danger?
“The ultimate aim is not necessarily to destroy banks, but rather re-appropriate the banking system to prioritize innovation and customer experience as the primary driver of growth. Crypto credit helps promote a more viable system based on two key factors: (i) credit enables a more widespread adoption and use cases for crypto and (ii) credit creates bridges to traditional financial systems and lays the rails for massive disruption via elimination of rent-seeking behavior in our current banking system.”
What kinds of issues are people having with traditional banks that crypto can disrupt?
“The profit motive for banks has been predicated on the need for greater money velocity via inflation targets set by central banks. This model necessitates currency devaluation to simultaneously scale banking profits and grow GDP. Further, tasks perceived to be simple, such as moving money on weekends/holidays, demonstrate the potential for crypto to accelerate the global economy without the friction of today’s banking infrastructure.”
What makes Salt Blockchain unique?
“Salt has created a vertically integrated lending system that prioritizes customer privacy and compliance. Our competitors use a deposit account model with re-hypothecation of customer collateral to risky trading entities on the back-end. The Salt model holds clients collateral on-chain to maximize the ability to audit assets by avoiding the sweeping of crypto into omnibus accounts which have been the target of hackers around the world. Finally, our platform holds customer service at a high premium – we have around the clock phone coverage and a dedicated loan team. Our high level of investment in customer service infrastructure is backed by our mission to facilitate global adoption of crypto.”
“It’s important to note we are sitting in a watershed moment where blockchain technology will meet innovations in quantum computing, AI/ML, and others, which will eventually provide synergistic opportunities to help democratize finance and bank underserved populations around the world.”
Catch How Crypto Lending & Credit Aim to Kill Banks at CIS Wednesday October 16th at 1:35 PM
Daniyal Inamullah will be joined on stage with Alex Mashinsky (Celsius Network), Pat Larsen (ZenLedger.io), Thomas Meredith (BitMinutes) moderated by Anthony Pompliano (Managing Partner & Podcast Host Morgan Creek Capital)
For more information visit https://cis.la/
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