Hello Ilya, thanks for taking the time to talk to us today. Could you please give our readers a brief introduction about yourself?

Ilya Volkov: Yes, I’m happy to be here. Thank you kindly for having me. So as for my introduction, I’m Ilya Volkov the founder and CEO of YouHodler, a FinTech platform specializing in crypto-backed lending products and cryptocurrency savings accounts. I started in the FinTech industry nearly 20 years ago, with 10 years focusing on Commercial Finance and another 10 years in online trading with different financial assets.

I believe both of these realms taught me valuable experience in currency exchange risks, international payments, and overall global finance. In fact, I would say crypto loans and the industry, in general, have a similar risk management model to that of traditional finance

We have seen an explosion of interest crypto lending platforms recently, including several Decentralized Finance (DeFi) offerings, why do you think that is?

Ilya Volkov: I think the keyword to mention is market maturity. Market maturity is responsible for attracting traditional financial services to the crypto market. Along with these traditional finance services comes a wealth of new crypto users who were once skeptical about this new technology. Now, there are more tools for them to use crypto the same way they use fiat and they sense some sort of familiarity there.

As a result, crypto lending is taking off in popularity as well as other trading tools YouHodler offers like Multi HODL™, and Turbocharge. These tools help users manage their crypto with less risk, more convenience and increased transparency. Now that users can clearly make the connection between crypto and traditional finance, they are more comfortable.

What is your opinion on the huge uptick in interest seen by many DeFi projects in recent months?

Ilya Volkov: If I can be completely honest, I don’t really see a huge uptick in DeFi projects. I think we as an industry need to be more careful with labels and definitions. There are a certain number of big-name platforms out there operating under the label “DeFi” but in reality, they are completely centralized.

Have centralized loan platforms like YouHODL experienced a similar reception?

Ilya Volkov: I can tell you that yes, YouHodler and other similar centralized platforms are experiencing positive growth that we’re all happy with. Of course, this is expected growth since more people are coming over to crypto from traditional finance and I foresee this progress continuing in a positive direction.

Many of those that take out loans on crypto lending platforms want to hold on to their collateral because they are bullish on its future. What is your take on the current market situation?

Ilya Volkov: Personally, I am pretty bullish on the current market situation. However, I am not a fan of many crypto “experts” simply pointing towards the sky, picking a huge number and saying Bitcoin will hit that number in “x” amount of years. That sort of prediction is solely for PR reasons and I don’t like to partake in such activities.

That being said, I am hopeful about the current market and its future. It’s a financial market and will always have a bit of volatility but overall, I only see good things happening from here.

Do you think the upcoming halving events for Bitcoin and Bitcoin Cash will have a bearish or bullish effect on the market?

Ilya Volkov: I think it will have a bullish effect on the market. Generally speaking, Bitcoin halvings tend to have positive long term effects on the price of bitcoin. There are a few different theories as to why this is but in my opinion, the simplest explanation is supply and demand. When fewer bitcoins are generated, then this increases the value.

If we look at the second halving that took place in Juy 2016, Bitcoin had a price of just $600-$700 before skyrocketing to $20,000 in that incredible bull run of 2017. It’s unlikely we will see anything that dramatic but I think we will see something positive out of all this. At the very least, the increased media exposure surrounding this event will bring more eyes onto the industry and as a result, will bring new active crypto users.

Besides crypto-backed loans, which other blockchain niches do you expect to take off in the coming months/years?

Ilya Volkov: I see crypto banks becoming available very soon. In fact, we already see many great examples of fully licensed and functional crypto banks such as SEBA and Syngum in Switzerland. The United States of America are a little behind but I know the state of Wyoming over there is making good progress. They just passed some legislature that will help establish regulated crypto banks in Wyoming and hopefully pave the way for more around the rest of the country.

Europe though is making tremendous progress in this and more traditional financial services are starting to join. In the near future, we will see the real integration of two worlds: cryptocurrency and traditional finance. Together, these two worlds will fully establish a full scope of crypto-fiat services just like traditional banks currently offer.

This will allow us to use crypto just as we use fiat for payments, lending services, investments, trading, savings etc. It will also open the door for new concepts such as the tokenization of assets.

The only thing standing in the way of all of this is regulators but thats changing fast. For example, new regulations like the Travel Rule and new EU directives are quickly catching on in many countries. At first, these new regulations may look like obstacles and complications to the industry. However, they actually will help bring crypto to the same level as traditional finance. Because of these new rules, crypto is becoming more transparent, more reliable and overall, more trustworthy. The end goal is integration, not competition, with traditional finance.

We understand you will be presenting at the Crypto KYC/AML event in Switzerland this coming March, can you give us a brief on what we can expect from the event?

Ilya Volkov: Without giving too much away, the event will comprise of several sessions and discussions debating all things surrounding Crypto KYC/AML. We’ll have representatives from many of the top crypto companies in the industry joining us for this productive afternoon. By the end we aim to have a clear roadmap of how to operate a business effectively while utilizing the latest in compliance initiatives.

What is the overarching purpose of the event? What do you hope to achieve?

Ilya Volkov: The overall purpose of this event is to get industry leaders together to discuss the importance of cryptocurrency KYC/AML and how we can find a balance between business efficiency and compliance. That may sound boring compared to many of the “flashy” crypto events out there but we promise it will be an educational, engaging and of course, fun day in the beautiful lakeside city of Lausanne.

We look forward to seeing you there!

Lastly, what do you think is the biggest barrier to mainstream cryptocurrency adoption, and when (if ever) will this barrier be overcome?

Ilya Volkov: The biggest barrier in my opinion is misinformation. As we just saw in a recent article about Warren Buffet, many people still seem to think crypto is synonymous with criminals, scams and money laundering. Those who actually know, understand that blockchain technology helps to combat those things and increases security, transparency and efficiency. Progress is being made though.

The media is slowly coming around to realize that crypto is a valuable and decentralized tool that will help improve finance. New, rational regulations are being made and traditional banks are starting to offer fiat and crypto banking services. Mainstream crypto adoption may not come in the form the original crypto rebels thought of but I certainly think it will grow from here and become a part of our everyday lives.

Thanks again for your time Ilya, do you have any final words for our readers?

Ilya Volkov: First of all, thank you for the thoughtful questions and for sharing this discussion with your readers. As for final thoughts, I’d just like to say we need to stop weighing cryptocurrency vs. fiat currency. While it makes for a great headline, putting the two against each other will yield negative results. Crypto doesn’t have to be a 100% replacement for the current financial system. Both industries can exist in harmony and create new, mutually beneficial services.

YouHodler has always believed we are building a bridge between these two worlds. Banks are our friends and we take inspiration from them. We simply want to fill the voids that they cannot do themselves and improve the overall experience for everyone. I think we’ll make positive strides if we cooperate instead of trying to dismantle each other so I will leave it at that. Thank you again for your time.