At the Token2049 conference in Singapore Stephan Lutz, the CEO of BitMEX, talked about how the US crypto industry is becoming more like traditional finance. Companies like Coinbase and Kraken are starting to operate in ways similar to banks.
According to Lutz, the U.S. crypto businesses will move in one direction that is consolidating TradFi with crypto. He pointed out that major players like Coinbase, Circle, and Kraken are increasingly adopting an approach that essentially replicates the existing TradFi system, effectively becoming its digital equivalent.
As a result, US companies are now focusing mostly on American customers. They are also pulling back from global markets. This shift is partly why BitMEX exited the US market.
Asia’s Stride in Global Crypto Market
Lutz predicts that Asia and particularly India will play a dominant role in the crypto industry over the next decade. The Asian market presents unique opportunities with a diverse customer base that includes both the banked and unbanked populations. For unbanked individuals, crypto solutions like international remittances are a boon.
PayPal Opens Doors for Crypto in U.S. Businesses
In another move toward crypto adoption, PayPal has made it possible for US businesses to handle cryptocurrencies. PayPal introduced the option for merchants to use crypto in their business accounts.
On the political front, Vice President Kamala Harris has expressed strong support for blockchain technology. She believes it can keep the US ahead in tech innovation. Harris has also emphasized the need to balance this with protections for consumers and investors.
Ripple CEO Urges Caution Post Indian Apex Court YouTube HackBroader Economic Factors in Play
Globally economic actions like those by China’s central bank and the US Federal Reserve are having an impact on the crypto market. Both countries are trying to stimulate their economies by increasing money flow and encouraging loans. These actions have led to a rise in interest for cryptocurrencies. But there’s concern that inflation could follow which may affect crypto values. Meanwhile, other countries like India are preparing to lead in the crypto space showing the wide range of approaches to blockchain technology across the world.
