Cryptocurrency and traditional banking will merge into a unified digital financial system, says David Sachs

Source: CritpoTendencia Original Title: Cryptocurrencies and banks will merge into a single system, says David Sacks Original Link: In the near future, cryptocurrencies and banks will merge to form a unified digital financial system. This is the view of U.S. government cryptocurrency and AI advisor David Sacks. The expert advocates that the tension between the two industries will reach a natural equilibrium.

In a recent interview with CNBC’s Squawk Box, the person dubbed the “cryptocurrency czar” supported the integration of the crypto world with traditional banking. His comments come amid banks’ intensified efforts to restrict the growth of the crypto sector.

These financial institutions have adopted lobbying strategies aimed at protecting their profit margins and reducing competition. In essence, this means trying to prevent cryptocurrencies from replicating their business models more efficiently and profitably.

In this context, banks are seeking to amend key aspects of the CLARITY regulatory proposal to align regulations with their own interests.

Notably, according to the 2025 lobbying report, banking associations allocated nearly $2 million to counteract the core elements of this legislative initiative.

However, based on Sacks’ statement interpretation, this open confrontation between banks and cryptocurrencies may have a clear solution: the unification of the two industries.

Do banks and cryptocurrencies have common ground?

Currently, the CLARITY proposal has stalled after facing new rejection in Congress. This situation reflects the pressure exerted by the banking sector to limit the crypto ecosystem’s ability to compete on equal footing.

The debate centers around whether stablecoin issuers can generate yields. From a crypto perspective, this is a natural step toward a more efficient, profitable, and secure financial system. For banks, this issue is seen as a direct threat to their business models.

Banking institutions are heavily regulated, requiring them to offer very low returns on deposits. Meanwhile, crypto platforms and exchanges can offer much higher returns, making them more attractive to customers.

Simply put, if regulations permit stablecoin rewards, a large amount of deposits could migrate from banks to the crypto ecosystem, threatening the stability of the traditional banking system.

The crypto sector interprets this differently. Some argue that banks seek to maintain an inefficient structure at the expense of users, and by blocking the development of more competitive sectors like blockchain, they limit innovation and harm depositors.

According to Sacks, this tension will not be resolved by winners and losers, but through integration. This consolidation will create a stronger, more efficient digital financial system aligned with the needs of 21st-century users.