THORWallet CEO Sees DeFi Coexisting With Traditional Finance

Marcel Robert Harmann, the Founder and CEO of THORWallet, shared his journey and insights into the crypto industry in an interview. Harmann's belief in the transformative potential of decentralized finance (DeFi) remains steadfast despite the industry's challenges with regulation and reputation. He discussed the complex relationship between crypto and traditional finance, emphasizing the need for proper regulation that balances innovation and user protection.

Harmann reflected on the early days of crypto, noting the tough hours and hard work but expressing that it was all worth it. Despite the industry's challenges, THORWallet has managed to defy the odds and remain profitable and growing. Harmann's view on crypto has remained consistent, focusing on the core principles of decentralization and transparency while cutting through the noise of trends like meme coins and NFTs.

Harmann believes that proper regulation is essential but must be implemented correctly to avoid stifling innovation. He cited examples of over-regulation in Switzerland and the EU, where regulatory overreach led to pushback from the industry. He emphasized that true DeFi protocols do not necessarily need regulation but must be verified as genuinely decentralized to protect users from scams and rug pulls.

Harmann also discussed the risks to retail investors posed by protocols that claim to be decentralized but are not. He stressed the importance of regulators verifying the decentralization of protocols and ensuring transparency in the on- and off-ramp processes. He expressed concern about the EU's approach to regulation, which he believes may not fully understand the technology or deliberately undermine DeFi.

Harmann views recent crypto trends, such as Bitcoin ETFs and meme coin cycles, as overall net positive. Bitcoin ETFs bring institutional adoption, offering a stamp of approval from larger companies. However, meme coins and NFTs attract new users but also extract money from those seeking quick riches, similar to a casino. Harmann believes that people may be burned by these trends but will return when they understand the real value of crypto.

Harmann believes that DeFi will coexist with traditional finance, with projects like Compound showcasing true financial innovation. THORWallet aims to build a Web3 neo-bank, offering users a seamless experience while adhering to the core principles of decentralization and transparency. He emphasized that the core of DeFi is freedom of finance, just like the internet's core is freedom of information.

Harmann's vision for THORWallet remains unchanged, aiming to provide all financial services based on open, fair, and transparent DeFi technology. He discussed the challenges of mass adoption and Web3 integration, noting that THORWallet is working on simplifying complex DeFi technology to provide a user experience similar to centralized finance (CeFi) apps like Revolut. He also addressed the need to abstract gas tokens to make the user experience more seamless.

Harmann believes that privacy is a fundamental right but must be balanced with the need to prevent misuse. He discussed the use of privacy protocols and the importance of a robust system that can catch bad actors. He also expressed concern about the EU's push for retail CBDCs, which he believes would lead to an observation state where everything is visible to the government, posing a threat to privacy and financial freedom.

Harmann does not view YouHodler as a direct competitor but sees potential for collaboration in the future. He believes that the Web3 space is more open to collaboration than traditional finance and that the key is to focus on expanding the overall market rather than competing for what's already there. He also discussed the potential for a partnership between THORWallet and YouHodler, with YouHodler's upcoming DeFi perpetual protocol potentially integrating with THORWallet.

Harmann believes that crypto finance will eventually overtake traditional finance, at least from an IT infrastructure perspective. He compared this shift to the auto industry's transition to electric cars, where traditional manufacturers were initially resistant but eventually had to adopt the new paradigm. He believes that the switch from the outdated tech stack of traditional finance to the more modern blockchain infrastructure will enable the creation of new financial products that were not possible before.