Legacy banks should learn about staking and DeFi or risk extinction

Staking and decentralized lending are both examples of the same building block in blockchains: financial incentives. In the case of staking, when a user has coins in cold storage, they can choose to leave their wallet open and connected to the network. In exchange, they will be paid transaction fees for all the transactions they validate, relative to the amount of coins they have in their wallet. The user can then withdraw these coins at a later time.

At the moment, the process of staking is still quite complicated and requires a certain amount of technical knowledge, so most people are still keeping their money in centralised services and exchanges. In the future, however, we can expect to see newcomers and established companies embracing staking and moving their money to decentralised services. More and more people will realise that this is a better option for their money. The only thing holding them back is the lack of understanding and information.

The crypto winter has shown us that legacy banks will not take the risk of implementing DeFi and staking services first, unless they have a substantial advantage over the DeFi and Staking services being used by crypto platfroms such as Ethereum and EOS. Legacy banks will always follow, and this is the case because the crypto platforms have already implemented the technology. Banks have the advantage of depositor’s money and have the ability to print money via loans. This means that they will never take the risk of implementing DeFi and Staking services without a substantial advantage. Luckily for them, there are ways to make the transition easier.. Read more about is defi the future and let us know what you think.

All about the economy, crypto-currencies, art and future predictions. To talk about all this, Cointelegraph en Español contacted artist Alberto Echegaray, director of Trustlink and former Argentine representative to the Financial Action Task Force. Cointelegraph: First, let’s talk about your work Moneyball. Alberto Echegaray: Moneyball’s development began in 2012. This work touches on what is taboo in art: Money. And it’s still a taboo subject, although now, with the advent of NFT, things are changing. Moneyball aims to show that most, or almost all, fiat currencies have no support in the world today. And how many governments use the issuance of these currencies to create inflation, which is actually a tax – a specter that robs people of their purchasing power. With this concept in mind, I began working on Moneyball with dollars. I lived in Washington for about 12 years, I was a consultant for the Fed. That’s how I ended up at the Fed, I was invited to visit the unit where the dollars are printed. Then they replaced the old dollars with the new ones now in circulation. In one section I found a huge warehouse with billions of dollars destroyed. Then I thought: It’s amazing. Photography was not allowed – there was a lot of security. I asked for the return of the destroyed money, but I was told that this money belongs to the state, not to us. And even if it is destroyed, it remains federal property. I had to write a series of letters, and a few months later they gave me two million dollars in $100 bills, which had been wiped out. And so I began to make art. CT: And how did you get the idea to include bitcoin in your work? EI : In late 2013, a Venezuelan in San Francisco told me about BTC and gave me some, which I still have. I didn’t pay much attention to it until 2015 or 2016. I talked to several people in Silicon Valley, and they said this is going to be part of the future, especially blockchain. I started buying bitcoins and became interested in them. Then I created a foundation and became a crypto missionary. It was very interesting. Bitcoin has started to rise. And during that time, I was able to travel to different countries for work. I have encountered resistance in all areas of finance. It seemed that I was talking about something to do with crime or money laundering. It was awful. But in 2016, I was contacted by someone in the Argentine government who needed help with technology to prevent money laundering and terrorist financing. That was Mariano Federici, head of financial investigations. The FIU has virtually nothing to counter money laundering through bitcoin and cryptocurrencies. It was a mess. I was asked to help and it was an interesting challenge. Better analysis, data and information systems have been installed. But I wasn’t interested in the adversarial part of the crime; I was much more interested in the technical part and cryptocurrencies. At the time, Europol organized a meeting where security experts gathered to discuss cryptocurrencies and cybercrime. I was a newcomer, but I was invited by the Argentine government. Then I was invited again to the FATF, and there I met people – mainly from the US, China, Russia, South Africa and Australia – who were aware of cryptocurrencies. They were a very strong team. And I began to see how the rules would change. CT: You wanted to do more and see the other side behind the curtain? EI : That was in 2016/2017. But before I joined the FATF as president in Argentina, I had four years of regulatory experience in Paris. In parallel, I started developing a private OTC note, and that was the first synthetic note with bitcoin as the underlying asset. And there I was able to create a financial product that I could invest in from my bank account. Everything was going well until the banks told me they couldn’t accept the money because it was BTC. I started thinking about Cryptoball. If I had to go through fiat currency and show it is worthless, I would say try cryptocurrencies. I started developing Cryptoball, but in 2017/2018 it was hard to get curved screens showing the BTC rate. I had to contact someone in China who gave me access to flexible screens. The Cryptoball is a ball with two flexible screens connected to the software in the processor. The processor displays the real-time value of BTCs stored in a hardware wallet in the room. It shows the price in yen, euro and dollar. At that point I had 250 BTC and I put them in my ledger wallet. In addition to the installation at the Venice Biennale, I put a million dollars and a million euros. There were a lot of young people. Many people in the art world have asked me what it is, because they don’t understand it. Then I was approached by a European collector I didn’t know. He asked me to meet him at a restaurant the next day. It was very interesting, because then they contacted me on his behalf and talked about His Royal Highness. He turned out to be a prince who is very culturally friendly. We sat down and talked about creativity. I couldn’t believe it, because the Venice Biennale is not a sold-out venue. The biennial ended and I took the work back to Switzerland. It’s a very interesting story. CT: The worlds of art and crypto-currencies get along very well. What do you think of the NFT? Are you planning to work with this technology? EI : I begin the process of symbolizing some of the work. I think I’ll name the sphere, but I want it to be something interesting. Not just 3D designed artworks or sculptures, but for example a kind of live ticker that displays the price. Something that exists in real life and exists in parallel in different dimensions. I also work with a group of people on 3D mapping and reality augmentation. I was also invited to become an advisor to the NFT platform of established artists. I think we are at the beginning of tokenization and a lot of interesting things that can spread art. I mean, it used to be very difficult for artists who graduated from art schools to get into galleries. The situation is changing dramatically. Today, art school graduates who choose digital or virtual art are getting offers for jobs, especially in the games industry. Then there are all the consumer brands that are moving into the virtual world. It’s amazing what’s coming. CT: As for the future of private banking: Do you think banks will work with or against cryptocurrencies? EI : All major banks already have large crypto currency research units. You know this is a new system in the financial system. It’s like talking about landlines and cell phones – they will eventually overlap. But they still cling to their transfer systems, their way of charging fees and making money, without realizing that the situation has changed dramatically. If they do not understand what the tariff or the DeFi is, and if they do not accept it quickly, they will see their business disappear overnight. There are people who try to understand it, but it is very difficult. The same goes for regulators. Not enough staff to ask someone who knows both worlds. And there is no capacity, no spirit, no determination. They think that’s far from the case. CT: What do you think the state of the global monetary system will be in 2030? EI : I think there will be great opportunities for new generations. It is a parallel system of governments, based on the speed of development of technology. I think society in 2030 will be more integrated on one side and more discriminated against on the other. These groups will be very influential. What we are seeing with cryptocurrencies is essentially a revolution in wealth or private money like we have never seen before. In the case of cryptocurrencies, I clearly see private systems connected to private space systems that may or may not be open source. I see banks, much more sophisticated digital assets and commodity tokenization in this space in the future. Traders don’t want to lose control of everything. That’s the prediction I see. I think there will be a new system that is neither capitalist nor socialist.The crypto space has been lively for the past couple of weeks. In this post I will summarize what has happened and provide some analysis. If you haven’t already, I’d recommend reading this previous post first, which covers the context and history. Monero is currently the crypto with the largest network capacity, and the blocksize is already bigger than Bitcoin’s will ever be. It is therefore arguably in the best position to be used as a chain for the highest volume of transactions. Monero recently had some drama with its minimum ring size consensus rule. If you don’t care about the details, you can stop reading here, because none of the drama is relevant to the points I’m going to make in this post.. Read more about defi pulse and let us know what you think.

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