The cryptocurrency and fintech sectors face new challenges dubbed ‘Chokepoint 3.0’. This initiative by major banks aims to suppress competition.
What is ‘Chokepoint 3.0’?
According to Andreessen Horowitz partners, the ‘Chokepoint 3.0’ initiative involves using high fees and app-blocking tactics to suppress competition from platforms like Coinbase and Robinhood.
Bank Tactics Against Fintech and Crypto Industries
Following the end of ‘Operation Chokepoint 2.0’, which targeted crypto businesses at the regulatory level, banks have begun employing their own methods such as restricting data access and increasing fees.
Ethical Issues and Consumer Consequences
Critics raise ethical concerns about the high fees banks impose for data that, according to the Dodd-Frank Act, consumers should access freely. This may lead to reduced consumer choice and lower adoption of fintech services.
The landscape for cryptocurrency and fintech is becoming increasingly tense. The conflict between innovation and traditional financial institutions may define the future of digital finance.
