Crypto Exec Dispels Dark Market Myth, Calls for Bank Adoption

iSun CEO Ieva Trinkūnaitė argues for banks to adopt crypto ahead of Web3 Summit 2023.

  • iSun CEO Ieva Trinkūnaitė argues that crypto has become significantly more transparent.
  • The industry executive suggests that there is no longer reason for banks to be scared of crypto.
  •  The contentions come as crypto-traditional bank relations remain strained.

With the rapid collapse of several crypto-friendly banks in Q1 2023, the sentiment of traditional banks toward the asset class seems to have only worsened. 

Nonetheless, Ieva Trinkūnaitė, CEO of Swiss financial capital firm iSun, has opined that there is no need for traditional banks to be afraid of crypto. 

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Trinkūnaitė called for integrating blockchain technology with traditional banking during an interview with DailyCoin Sections Editor Stefan Trapp ahead of her appearance at Web3 Summit Vilnius 2023 on November 9.

iSun CEO: Banks No Longer Need to Be Afraid of Crypto

Responding to questions about where crypto integration is needed the most, iSun’s Trinkūnaitė pointed to traditional banking. She suggested that these institutions feared the nascent market because of its initial reputation as a dark market. However, she contended that crypto technology and the industry have since evolved.

“Crypto was known for being anonymous. In a way, they [traditional banks] were afraid that people were afraid of it because they saw it as a dark market. 

If you know the industry now, you understand that is no longer the case. It’s a transparent means of payment. And it can actually be traced back to the people who sent and who received in the same way as traditional banking,” the iSun executive argued.

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Following arguments that the crypto market had become significantly more transparent, Trinkūnaitė highlighted several ways the banking sector could benefit from blockchain technology.

“You can send and receive money 24/7. You don’t need to wait for a bank in Spain or Singapore to open. It’s borderless. 

It’s also not political; it’s just a line of code mined and confirmed by people who aren’t connected to the transaction. I think it should be integrated into everyday life much more than now,” Trinkūnaitė asserted.

While several central banks and investment banks have already started experimenting with blockchain technology for central bank digital currencies, cross-border settlements, and tokenization, there has been less talk about integration with commercial banks. However, the iSun executive expressed confidence that this integration would be a natural part of the technology’s evolution with more education and regulation.

The connection between traditional banks and crypto has typically been limited to facilitating much-needed fiat on/off ramps for crypto exchanges and holding custody of stablecoin reserves. However, even this relationship has been strained by recent banking troubles.

Crypto’s Banking Troubles

The United States banking sector endured a rough start to 2023. Blindsided by the Federal Reserve’s interest rate hike regime, several banks, including Silicon Valley Bank (SVB), Signature Bank, and Silvergate Bank, that held assets totaling billions in illiquid securities investments, were left in the red. Amid the liquidity crunch, the banks failed as customers came calling for their deposits en masse.

However, what caught headlines is that these banks were among the most crypto-friendly in the U.S.

With the collapse of these banks, several crypto firms struggled to secure banking partners as U.S. regulators discouraged banks from interacting with the crypto sector in controversial guidance. The search for new banking rails led some to Asia as Hong Kong adopted an increasingly crypto-friendly approach in 2023.

On the Flipside

  • JPMorgan-owned Chase Bank recently decided to restrict crypto-related transactions, citing concerns over the rise of crypto-related fraud and scams. 

Why This Matters

The comments from iSun’s Trinkūnaitė highlight crypto’s evolution from a relative unknown to a transparent market, offering a wide array of benefits that traditional financial institutions can benefit from.

On November 9, the iSun executive will speak at the Web3 Summit Vilnius 2023. The event intends to highlight how Europe can benefit from adopting crypto and blockchain technology.

Delve into why iSun’s Trinkūnaitė believes collaboration is critical for crypto regulations:
iSun CEO Urges Practical Crypto Regulation via Collaboration

Learn more about the role of MiCA and U.S. lawsuits in crypto adoption:
MiCA Could Boost Crypto Adoption, But U.S. Cases Hold the Key

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.