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Coinbase CEO Gives Positive Opinion on Cryptocurrency Developments
Dan Burgin
Coinbase founder shares 10-year prediction: 25% of global GDP in cryptocurrencies
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In an interview with Ark’s Cathie Wood, Coinbase founder and CEO Brian Armstrong shared his thoughts on some of the crucial things that are happening in the cryptocurrency industry, as well as some of the platform’s latest developments. The conversation took place at the State of Crypto Summit 2024.
Layer 2
Armstrong highlighted the importance of the exchange’s layer 2 solution, Base, in the advancement of blockchain technology. He likened the transition from Tier 1 to Tier 2 networks to the move from dial-up Internet to broadband Internet, emphasizing the increased speed and reduced costs.
Level 2 enables features like instant, free USD coin transfers globally, which revolutionize payments, remittances and other economic activities by reducing friction: “This is a game changer for things like payments and remittances and um you know all kinds of things that just reduce the friction in the economy,” he noted.
DeFi
Armstrong also highlighted the evolution of cryptocurrencies from a simple asset class, now worth more than a trillion dollars and used by more than 400 million people, to a tool of real-world utility, such as payments, voting, social networks decentralized, etc. These developments are crucial to increasing the global adoption of cryptocurrencies, potentially reaching over a billion users.
The transformative potential of peer-to-peer transactions lies in eliminating intermediaries, thereby reducing economic friction. Real-time settlement via cryptocurrency can eliminate the intermediaries and risks associated with intraday settlement.
The real potential and innovation here comes from these peer-to-peer transactions. How do we eliminate the middlemen? Cryptocurrencies truly make many of these intermediaries unnecessary. If you can settle instantly, you don’t need to know a brokerage with some sort of risk introduced with intraday settlement. If it were just real-time settlements, it could eliminate intermediaries and reduce friction in the economy.
Armstrong envisions a future where cryptocurrencies power a significant portion of global GDP, thanks to their efficiency. He predicts that within a decade, 25% of global GDP could be managed through cryptocurrencies, driven by their ability to streamline and simplify economic transactions.
About the author
Dan Burgin
Dan is a news editor and writer with 12 years of experience in finance and emerging technologies, with a strong focus on cryptocurrencies. Covering a broad spectrum of topics, from fintech startups to artificial intelligence, he provides an in-depth overview of the current state of the cryptocurrency market, along with insights into its potential for future disruption.