Rebuilding the Global Financial System Using DeFi Technology

Suzat

October 13, 2020 11:04 am

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Alexander Lebedev, the owner of U.K. newspapers Evening Standard and The Independent have revealed he is looking to launch decentralized finance (DeFi) powered “bank 2.0.”

Alexander Lebedev, who is also a former banker, along with Russian publication Novaya Gazeta, has spoken glowingly of the potential for cryptocurrency and smart contracts to revolutionize finance.

The Independent, an extensive 1800 word opinion piece published on October 13, affirmed that the billionaire predicted blockchain tech will agitate what he described as a parasitic global banking oligopoly, stating that “blockchain technologies and smart contracts will make it unnecessary to employ the vast majority of people in the financial sector.” Although he believes the current “explosive growth of DeFi platforms is driven by a rapid influx of liquidity” and “cannot continue indefinitely” he declares that nevertheless:

“The technologies embedded in this infrastructure open up tremendous opportunities for rebuilding the global financial system.”

Lebedev announced that smart contracts allow customers to access financial services “without the participation of an intermediary in the form of the bank itself,” preventing “greedy bankers” from stealing clients’ funds.

Lebedev also unveiled that he is now looking to establish an “Independent Decentralized Financial Ecosystem” of his own and also has invested $100,000 into an Estonia-based yield farming protocol as “an experiment” and looked surprised at the quick returns.

The platform will try to offer “the full range of services of traditional banks, including currency exchange, deposits, lending, settlement and cash services and local and international transfers.”

The former banker noted that global regulators are increasingly warming to crypto-assets, quoting recent moves to recognize stablecoins and security tokens on the part of German, Chinese, Swiss, and U.S lawmakers.

“The next step will be the ‘digitalization’ of real assets, including production facilities, real estate, goods and services, with their holding in distributed ledgers.”

Also, the reason for his faith in the potential of cryptocurrency is that in its current form, Lebedev alleges that the global financial system is “leading the world economy to disaster.”

Lebedev dedicated 25 years to banking and purchased Russia’s third-largest private bank, the National Reserve Bank in 1995. He claims to have observed a shift in contemporary banking practices among his competitors toward “pocketing clients’ money.” Lebedev added that since the 1990s, thousands of Russian banksters have stolen more than $100 million of their clients’ money.

He declared that billions of people are completely cut off from banking services, due to their reduced access to financial resources, attributing their economic exclusion to the banking class having nothing to steal from them.

“Perhaps we are on the verge of a real revolution in the international financial system, and the end of the bankster.”

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