As Anatoly Yakovenko sees it, blockchain technology’s full integration into the U.S. financial system faces significant obstacles. However, according to the Solana co-founder, the hurdles are more regulatory than technological. Yakovenko shared these insights recently on the 1000X podcast, comparing traditional financial mechanisms to emerging crypto-based solutions. He specifically underscored how merchant services like Stripe and PayPal are cumbersome. Yakovenko likened the merchant experience to giving “a pound of flesh and a firstborn to deal with the mess.”
Crypto versus conventional systems
Additionally, Yakovenko provided a contrasting perspective between crypto technology and the conventional credit card system. According to him, setting up with crypto technology is streamlined and hassle-free. “I just generate an address with a private key and I’m good to go,”
Yakovenko said. He went on to criticize the existing credit card system, which he labeled as “bizarre.” In a traditional credit card transaction, the customer essentially shares a “private key” with the merchant. This practice then necessitates a complex verification process to ensure that the private key hasn’t been compromised.
The Solana co-founder argues that stablecoins are especially beneficial, stating, “Your bank accounts will take USDC deposits across a bunch of networks, just like exchanges do.” This development could potentially eliminate the need for wire transfers and other traditional methods of moving money. Moreover, Yakovenko is confident that stablecoin usage would find a natural home on the Solana network. The reason, he says, is straightforward—Solana is “cheaper and faster” than competing blockchains like Ethereum.
In terms of practical applications, Yakovenko cited an example involving multi-route trades on Jupiter, a swapping aggregator that operates on the Solana network. He said that a transaction that accesses liquidity across 50 different markets could be completed for as low as $0.05, without any additional fees. Besides this, he pointed out that established financial companies like Visa are already exploring the benefits of crypto technology. Visa, he claims, would not invest in any blockchain technology that could lead to an increase in transaction fees.
Significantly, Yakovenko highlighted the need for any viable blockchain solution to match credit card checkout times, which currently complete in under two and a half seconds. He also emphasized that cost remains a critical factor for companies like Visa. “Everyone should intuitively agree that finance is moving numbers around computers,” Yakovenko opined. “It’s a regressive tax on the entire economy. It should be as cheap as possible.”
While it seems that Anatoly Yakovenko acknowledges the potential of blockchain technology to revolutionize the financial system, it’s clear that he views regulatory hurdles as the major obstacle. Yakovenko added that until Congress passes a stablecoin bill, the future of crypto technology in the United States remains uncertain.
