Regulation, User Trust, and Tech Constraints Stand in the Way of Mass Crypto (Banking) Adoption, Says Brighty’s CTO Nikolay Denisenko

cryptonews.com:

In an interview with Cryptonews, Nikolay Denisenko, the co-founder and CTO of mobile digital finance Brighty app and former Lead Backend Engineer at neobank Revolut, spoke of the major challenges crypto companies face when moving into neobanking.

He further discussed how neobanks can utilize DeFi to offer enhanced services, opined that the role of neobanks will expand with market evolution, and argued that these novel institutions will push traditional banks to step up their game.

This is what he had to say.

Widespread crypto banking adoption depends on industry players and regulators together overcoming challenges tied to regulation, trust, and tech limitations, Denisenko said.

There are several major challenges when transitioning from traditional banking to neobanking, Denisenko told Cryptonews.com. These also present barriers to crypto adoption.

First, crypto companies are facing regulatory hurdles. The banking industry is heavily regulated, but the digital space needs a “robust regulatory framework” to become a part of the global financial system.

Then, there is a lack of widespread understanding and trust – many individuals still see crypto as risky or speculative investments.

Gaining customer trust is especially difficult with the “stiff” competition from established financial institutions.

Offering first-rate security for the new tech-based products is key, Denisenko argued. Companies must invest in measures such as multi-factor authentication, encryption, and audits.

Lastly, fintechs and neobanks must build a solid technological infrastructure, aiming to create “scalable and reliable systems to support real-time transactions,” the CTO said.

However, per Denisenko,

“Considering the current regulatory landscape, the forecast