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Coinbase CEO says crypto is the ‘future of money’ – Do you agree?
Armstrong gives his take on the underlying idea behind real-world use of cryptocurrencies.
- Armstrong believes crypto is the future of money with several use cases.
- Coinbase strives to clear a key hurdle in the industry – regulatory clarity.
The crypto market has long been associated with illicit activity and lack of real utility. Even the European Union has joined the naysayers. In February, the European Central Bank criticized
Bitcoin [BTC], terming it as “snake oil.”However, Coinbase CEO Brian Armstrong has dismissed these attacks, citing various crypto use cases.
In a recent blog, Armstrong cited traditional payment challenges and how crypto has solved them.
“Merchants still lose about 2% on every credit card transaction, wire transfers cost $30, and many transactions in the U.S. still take days to clear.”
Layer 2 solutions have scaled blockchain and solved high fees and delays in traditional global payment systems.
“As blockchains have scaled using “Layer 2” solutions, you can now send USDC in one second, anywhere in the world, for about one cent.”
Additionally, Coinbase Chief also cited dollar-backed stablecoins that have now exceeded $100 billion as a sign of another remarkable real-world use case. He even referred to crypto as the “future of money.”
Coinbase future plans
Breakdowns and outages always mark bull run markets during traffic surges. Coinbase has suffered a handful of these outages in the past few days.
Armstrong told Bloomberg that the Bitcoin rally and traffic uptick exceeded their model set at 10X growth, so they must invest more in infrastructure upgrades.
Additionally, Coinbase’s chief highlighted that the platform will evolve to cater to three key category audiences;
“We can be an infrastructure provider for traditional financial services and retail/institutions app for people who want to directly use crypto.”
Adding extra value to these three categories could tip Coinbase’s shares and native BASE token to rally. BASE was already up 7% on the daily front, at press time, per CoinMarketCap data.
However, the sector still needs regulatory clarity despite US spot BTC ETF approval. Coinbase has opted to support pro-crypto candidates in the upcoming US elections to tackle this.
