Mastercard crashed the crypto party On Monday 17th of October, when it announced a program to help banks and other financial institutions offer crypto trading.
This announcement is the most recent move by payment processors to introduce traditional “centralized” finance players into the crypto space.
Unfortunately, every blockchain fundamentalist sees traditional centralized finance players as unwelcome guests in the crypto space.
For sometimes now, banks have been making every effort to invade the cryptocurrency space. And players in the industry aren’t finding it funny.
For instance, Visa collaborated with crypto exchange FTX last week to introduce crypto debit cards in 40 countries.
Similarly, American Express has been working tirelessly behind the scenes to make a move into stablecoins.
Stablecoins are cryptocurrencies whose values are pegged to that of another currency, commodity, or financial instrument.
This sudden big banks invasion into the crypto space isn’t a good omen. It will undermine the whole idea of keeping the cryptocurrency and blockchain space as decentralized as possible.
If cryptocurrencies and blockchains can no longer operate independently of centralized institutions like banks, then the vibes that come with them will die naturally.
Before we open our arms to welcome these financial institutions into the crypto space, let’s reflect on why the first cryptocurrency was created…
Just think about it.
Satoshi Nakomoto created bitcoin in 2008 in reaction to the massive failure of the traditional financial institution during the 2008 financial crisis.
And its original purpose was to carry out internet transactions without involving banks and other traditional financial institutions.
Now you understand that even though it works, using a crypto-loaded visa to shop the reformation sale online is kinda weird.
It’s like eating soup with a lollipop.
What do you think about banks Offering Crypto trading? Kindly share your thoughts in the comment below.