The crypto industry started out rather compartmentalized, with relatively zero connection with the financial industry. Anyone who wanted “entry” into the world of cryptocurrency had to buy the coins from their friends or had to mine it themselves. Simply put it – cryptocurrency was an “exclusive” community. That was probably 8 years ago – and probably when bitcoin was labelled “scam” pretty often by financial pundits and economists around the world.
Today, exchanges have quickly established themselves as the “de-facto” gateway that enables the common man entry into the crypto community. Users can easily convert their paper money (fiat currency) into crypto conveniently. Ironically, the banks and traditional finance institutions who lobbied very hard against bitcoin and cryptocurrency still stand to benefit from the industry’s unparalleled growth. However, this is about to change.
Eliminating the competition, slowly
For a long time, the crypto community have mistrusted the financial giants who brought forth the financial catastrophe of 2008. However, they had no choice but to cozy up to the banks not only due to increasing scrutiny of regulators, BUT also for the access the financial giants had in terms of its ability to move money. As a result; payment processors such as Mastercard and Visa are processing ever more transactions thanks to the huge demand for cryptocurrencies.
While both the “establishment” and the crypto businesses appear “friendly” to each other, it’s not a secret that these “establishment” boys have been working on their own to gain control of the industry. Little did they expect (or perhaps ego got in way), the crypto industry had an upper hand and they played it without any hesitation.
The entry of stablecoins like Tether, which was backed by popular crypto-exchange, Bitfinex have changed the landscape once and for all. While they did get branded as a “fraud” and a “black-box”, fiat currency now has a free-pass and easily convertible into a form of cryptocurrency. What’s more – it has a dollar value peg on it which introduces a “stability” component, making it useful to anyone who wants in, but hates volatility.
Decentralization – Satoshi’s dream made a reality
One simply cannot deny that while Bitcoin and blockchain started out as a “decentralized” digital currency and technology; have been pretty tangled up in government, regulation and centralization. This will change, and soon. Coinsauce believes that stablecoins will inadvertently lead to decentralization of the whole industry. Imagine zero censorship and political or governmental pressures.
Although being touted as regulator-friendly and properly audited, the minting of stablecoins are akin to being a “mini” central bank. So, the question is how long might this last? Many believe that central banks will eventually come down hard on the crypto industry, which is why preparations are being made to push everything towards decentralization. Will we finally see Satoshi’s dream made a reality, once more? Only time will tell.
Cover photo by: fee.org
Rocket Internet by training, he has worked as a professional marketer for Lazada/Alibaba & Bamilo (Ecommerce) and Easy (Transportation). Later, he honed his skills in operations, logistics, and management by launching and growing the Thai business (worth tens of millions) of a popular cross-border ecommerce platform (in Southeast Asia). Headhunted to join a public-listed tech company in Singapore, he led its Thai business until early 2018. Regarded as a trusted advisor by venture builders, Chong spends his time advising and investing into tech and crypto projects.