Banks Will Share The Same Fate as Telecom Companies, Says Inventor of VoIP Alex Mashinsky at Next Block Conference
Serial tech entrepreneur Alex Mashinsky tells the audience at the Next Block Conference today in Tel Aviv why blockchain technology and digital assets will force banks to offer free services in the future.
Alex Mashinsky, the current Founder and CEO of crypto loaning platform Celsius Network, has been involved in the telecommunications industry for decades. Having set up a number of successful businesses in the U.S and invented the hugely successful Voice over Internet Protocol (VoIP) which is used by a billion people every day, Mashinsky turned to the blockchain industry in 2017 to continue innovating in the tech space.
The business veteran is well-known for challenging centralized authorities, particularly those among the financial and telecommunications industries. Prior to co-founding VoIP in 1994, a select number of giant telecoms companies in the industry were largely unchallenged, and capitalized on the lack of competition by charging users extortionate fees to make phone calls - but that quickly changed with the launch of the new protocol.
“We went from a system where only a few large phone companies basically dominated communications and charged people $3 a minute, to one where it’s free.”
Mashinsky has now turned his attention to disrupting centralized and corrupt banking systems with ‘Money over Internet Protocol’ (MoIP) and his latest venture, Celsius Network; a crypto-based lending and borrowing platform that allows crypto holders to earn higher interest rates on their stored assets than any traditional bank can offer, as well as borrow money without a credit check at competitively low annual percentage rates - using digital currencies as collateral.
“...the banks have done a great job for themselves, of taking your money, paying you 1 percent and charging 25 percent on your credit card; they make all the profit…The bank is focused on maximizing the profit, Celsius, our company, is focused on maximizing the community,”
At the Next Block Conference today, Mashinsky confirmed that banks would share the same fate that telecom companies suffered back in 1994, when his free VoIP service forced the industry to radically change its ways. He believes that the growth of blockchain technology, coupled with increasing demand for free MoIP services, will compel banking systems to adjust their extortionate rates in line with the new era of financial technology - or become obsolete.