Decentralisation will continue to mount to enhance human freedom across the world, according to Brian Armstrong, CEO of Coinbase. He is convinced that a separate economy would evolve along with the Crypto-to-fiat exchanges that will usher in an era of innovation.
In an article dubbed, ‘What will happen to cryptocurrency in the 2020s’, and posted on the Coinbase Blog, the Crypto pioneer painted his vision of the near future. Armstrong communicated that the fiat-to-crypto exchanges would mostly follow a traditional financial services model.
However, a separate world will evolve in the solely decentralised crypto-to-crypto area. It is the outlook of the Coinbase CEO that, once you convert your fiat into Crypto, you can then enter an enchanting experience of innovation that is purely crypto-to-crypto.
“In this world, non-custodial wallets, DEXs, Defi, and Dapps will continue to improve in terms of usability and security, and we’ll see a lot of new applications emerge, from games to online communities, to virtual worlds with their economies. Many of the apps and non-custodial wallets in this world, since they never store customer funds, will be regulated like software companies instead of financial service companies.”
Global Movement And Privacy Coins
According to Armstrong, there will be a dramatic transformation hastening the velocity of innovation. Moreover, it is going to be inherently global from the incipience and won’t be geographically restricted.
“There will be greater privacy in this world as well, with privacy coins and non-custodial wallets seeing greater adoption,” he asserted. “We’ll also see the rise of decentralised identity and reputation scores associated with those identities, replacing the credit rating agencies with a more modern/global approach.”
He pointed out that as the decentralised crypto-economy grows, more people will earn a living in Crypto and feel a sense of empowerment. The feeling, he said, will be much like early immigrants coming to America.
CBDCs And Emerging Markets
Armstrong thinks Libra drew the ire of everyone in Washington DC and inspired China to initiate the digitalisation of the Yuan whiles, making Blockchain one of their core technology investments. “The US is playing a bit of catch up now, and active discussions are taking place about how the dollar can be digitised,” he noted.
Additionally, he maintained, CENTRE, with its USD Coin, maybe the answer that the US turns to, or the Fed may try to implement their digitised dollar using Blockchain. In the coming years, he envisages digital basket currencies coming out, either by a consortium like Libra or CENTRE, or possibly the IMF itself.
On adoption, Armstrong speculated that emerging markets would be at the forefront with a significant role because of the large remittance market, inflation and weak financial systems. He used a recent scenario in Venezuela as an analogy:
“In 2019, GiveCrypto.org made cryptocurrency payments to 5,000 people in Venezuela, and over 90% of them were able to create at least one transaction with a local store that accepts Crypto or local cash out partner. This indicates that the tools have started to cross a threshold of usability in emerging markets (where unreliable internet, older smartphones, and a lack of education can be challenges).”
The author of Breaking Free concluded that, In the 2020s, the world is going to witness Cryptocurrency adoption in emerging markets scale to hundreds of millions of users. At the slightest, one country shifting so that the preponderance of transactions in their economy occur in Cryptocurrency.