CandleFocus

Solana teams pick up on debanking narrative

Author: Content Editor
The recent revelation that 30 of venture capital firm a16z's portfolio founders had their bank accounts closed arbitrarily, as discussed by Marc Andreessen on The Joe Rogan Experience, has sparked discontent with the US banking system within the crypto community. This has given rise to the development of alternative banking solutions on the Solana blockchain, aimed at providing services to the debanked and unbanked. However, the success of these alternatives remains uncertain, as previous attempts have failed. A report by Squads Labs suggests that US regulators perceive crypto and fintech as high-risk, leading to numerous debankings, although detailed data on the number of crypto-related debankings is lacking. Squads Labs has capitalized on the crypto crackdown, offering a smart wallet app with a "virtual US bank account." Other projects on Solana, such as Iron and CFX Labs, are also building onchain banks or proposing tokenized USD deposits. While the debanking narrative highlights the lack of transparency and accountability within traditional banks, regulators' involvement is necessary for any crypto-based banking revolution to succeed.

Related News