Ethereum: The New Platform for Banking Rails

Published on
December 29th, 2020
26 minutes

Ethereum: The New Platform for Banking Rails

The Interview - Crypto ·
Featuring Kain Warwick and Alex Saunders

Published on: December 29th, 2020 • Duration: 26 minutes

Kain Warwick, founder of Synthetix, joins Alex Saunders, founder & CEO of Nuggets News, to discuss Ethereum as new banking infrastructure, Central Bank Digital Currencies, and the importance of permissionless innovation. Warwick explains that there is an enormous amount of innovation happening on top of Ethereum, believing that it is a 10x improvement over legacy banking systems like Swift. Warwick describes how the blank slate innovation enabled by Ethereum allows for protocols with much less friction, such as trustless bank to bank transfers, never before possible on legacy systems to come into being, and he shares why he thinks there will be a hybridization of legacy infrastructure with crypto systems. Filmed on July 23, 2020. Key Learnings: Ethereum enables new models for banking and finance systems. It provides 10x improvements over legacy banking payment rails. Legacy financial infrastructure will likely become a crypto hybrid model, and those legacy systems that embrace the hybrid model will likely have a better shot a long term survival as crypto eats traditional finance.



  • AM
    Avici M.
    5 January 2021 @ 21:23
    I personally am already moving away from the traditional banking services more and more and embracing the neo banks such as binance. The future is already here :)
  • JP
    John P.
    30 December 2020 @ 21:13
    Do you guys know that a lot of us who WANT to learn have no idea what you guys are talking about. What does “participate in the network” mean?
    • PR
      Peter R.
      31 December 2020 @ 11:18
      Try this as an introduction -->
    • AM
      Avici M.
      5 January 2021 @ 21:08
      Ton of info on the internet if you are willing to look
  • TP
    Timothy P.
    29 December 2020 @ 18:50
    My god, this guy has no idea about the shifting sands he's trying to build on. Virtual "Bucket Shops", eh? I wonder what the Australian Finance Ministry thinks? I'm sure you have NOTHING to worry about, in the land of the most extreme financial regulation that exists. You have told them, haven't you? I don't see a word about regulation on your website.
    • AT
      Arthur T.
      1 January 2021 @ 08:09
      hahaha you have no idea what you're talking about they'll shut it down just after they arrest the bitcoin creator and require him to turn off bitcoin Ethereum smart contracts are unstoppable welcome to the future financial system
  • GG
    Georg G.
    31 December 2020 @ 04:17
    Thank you for another great interview Alex. That was very interesting, but what I was missing was a question about regulatory risk. I have been an investor in and user of the Synthetix platform since the beginning of the year, and I think it is an incredible project. But I do worry about the risk of a regulatory crackdown, particularly by the SEC. The fact that I could trade highly leveraged products (including options) on equity indices and commodities on the platform, is surely something most regulators are looking at with some concern. I understand that it's not easy to shut down a decentralized protocol like Synthetix, but I am sure regulatory actions could still severely hamper the project (by for instance banning US citizens from using it). I would love to hear your and Kain's thoughts on this.
  • SB
    Scott B.
    30 December 2020 @ 00:29
    Ethereum 1 failed. Ethereum 2 isn’t here yet. What is everyone talking about? Something that might happen to work at some point in the future. And tell me again, what are they solving and why do you need a blockchain and tokens to solve for it?
    • PR
      Peter R.
      31 December 2020 @ 00:16
      Solves the "double-spend" problem which allows for the development of (decentralised) "trusted" information between systems that may be in different organisations. In the enterprise blockchain world (r3), the Italian retail banks have set up the Spunta Banca reconciliation project. There are also various trade finance systems being developed like Marco Polo.
  • MJ
    Marius J.
    30 December 2020 @ 11:55
    Nb Nb Nb; Filmed on July 23, 2020.
  • JW
    J W.
    30 December 2020 @ 10:59
    Another fascinating insight into the new financial system.
  • bt
    brian t.
    30 December 2020 @ 02:38
    What is the take on the latest Governments statements. Steven Mnuchin, Dec23, Today the Presidents Working Group on Financial Markets, led by treasury, released a statement on key regulatory and supervisory consideration for stable coins! Crypto doesn't care about the USD, So do they see this as a threat?
  • KS
    Kevin S.
    29 December 2020 @ 16:39
    The conversation was interesting and gave me a few good takeaways. My main takeaway is that the best way to invest in DeFi is to focus on the plumbing of the system -- this means holding ETH since it fuels the system, and then target other projects that support the system; Chainlink (LINK) stood out to me. As more derivatives trading occurs using tokenization an oracle feeding the real world data into the system will be critical.
    • JD
      John D.
      29 December 2020 @ 17:51
      There is a different between a problem to be important and having actual solution i.e. "Nobody wants to die." vs. "Buy mi pill 💊 and you will live forever." Chainlink doesn't have a solution to the oracle problem. ETH is universal solution for non-existent problem.