Stojanovic of True Global Ventures: “Centralisation is dead”

    Also watch on:
Podcast available on:

Interviewed By Emmanuel Daniel

Dusan Stojanovic, founder of True Global Ventures, caught up with Emmanuel Daniel, founder of The Asian Banker, to unpack how the recent banking crises in the US and Europe signal a shift towards decentralised assets and platforms

  • Loss of trust in centralised finance drives demand for decentralised assets
  • Bitcoin price rallies in the wake of bank failures
  • Bitcoin emerges as “best use case” for blockchain technology for DeFi

Back-to-back banking crises sent shockwaves throughout the global financial community in March with the $3.3 billion takeover of Credit Suisse by competitor UBS in Switzerland, hot on the heels of the collapse of three small- to-mid-sized banks in the United States (US). 

Well before the UBS rescue, Credit Suisse—Switzerland’s largest bank—had already been mired in scandal and failed investments. 

In the US, the unfolding banking crisis began with the winding down of crypto bank Silvergate on 8 March. Over the next four days, Silicon Valley Bank (SVB) and Signature Bank joined the casualty list. 

SVB, then the 16th largest bank in the US, sold its bond portfolio for a huge loss, triggering a bank run by depositor companies concerned over its liquidity. SBV’s treasury bond holdings had lost significant value after the Federal Reserve hiked interest rates to fight off inflation. 

In this conversation with Emmanuel Daniel, Stojanovic says the loss of trust in centralised financial institutions will drive the demand for decentralised assets and platforms. 

Specifically, Stojanovic says, the three strong drivers of decentralisation in the near future will be: self-custody, decentralised finance (DeFi) and Bitcoin. Bitcoin prices jumped from $19,000 to $27,0000 as investors in dire straits looked towards alternative assets.

Dusan said: “There was a clear flight to the best decentralised use case that we have out there, where it’s clear and predictable, where nobody can interfere and there is no risk of being too large to fail.” 

Dusan said the sustained uncertainty over the crash of large cryptocurrency platforms like Terra Luna and FTX last year are also driving the use of self-custody wallets, which gives crypto users ownership of their private keys instead of entrusting them to third parties. 

He said: “The need for self-custody is very correlated to the need for gold, which is an alternative asset that is especially needed when trust is lost in centralised organisations.” 

 

 

 

Keywords: DeFi, Bitcoin, Cryptocurrency, Self-custody, Tokens, Investment, Intermediaries
Institutions: True Global Ventures, Ledger
People : Dusan Stojanovic

Search

View Past Sessions View all

Image
Beyond Banking: Creating Exceptional Customer Experience

This RadioFinance session will discuss how financial institutions can deliver a strong customer experience and how corresponding back-end capabilities can be a critical enabler.

Image
Incumbents accelerate technology spending to stave off digital challengers

Presenting key insights from the Excellence programme held in Hanoi in March 2023, Christian Kapfer, research director of TABInsights, identified personalisation, customer engagement, embedded finance and platform ecosystems as the key…

Image
Daniel Eidan of BIS: “Central banks and innovation can co-exist”

Inclusive innovation in central banking can enhance monetary and financial stability, according to Daniel Eidan, advisor and solution architect of BIS, speaking at the Excellence in Retail Financial Services Convention 2023

Image
Stojanovic of True Global Ventures: “Centralisation is dead”

Dusan Stojanovic, founder of True Global Ventures, caught up with Emmanuel Daniel, founder of The Asian Banker, to unpack how the recent banking crises in the US and Europe signal a shift towards decentralised assets and platforms

Image
US-China Craig Allen: “We want a level playing field for China’s private sector…

Craig Allen, president of the US-China Business Council (USCBC) met with The Asian Banker’s Emmanuel Daniel to discuss the impact of US-China trade tensions on foreign companies doing business in China, and anywhere in the world.