Crypto is bigger than gold and visas UPC Cross-chain Interoperability Project makes transfers easier for the average consumer. The race to unite the globe and make the trading of crypto more universally accessible is on and this is just one of the exciting new platforms. Another is Avalanche which you can read about here.
Will Bitcoin replace Gold?
Cryptocurrencies disrupt the global economy on a constant basis, bringing economic opportunity for people all over the world. Despite recent quiet crypto markets, investors are exhilarated about the potential explosion in the last quarter of 2021.
Entrepreneur Chamath Palihapitiya, chairman of Virgin Galactic and outspoken Bitcoin enthusiast, shares in the excitement, claiming that Bitcoin has “effectively replaced gold,” calling it “the most profound evolution of the Internet to date.”
While many wait in anticipation for Bitcoin to surpass Gold’s global market of $10 trillion, Chamath is suggesting that due to the liquidity, adoption, and usability of Bitcoin, it has already won the race. Price-performance alone is indicative of such.
Palihapitiya reiterated the concerns of many regarding inflation and the benefits of crypto as a legitimate hedge against the impending shock. He also highlighted the benefits of crypto outside of Bitcoin, noting the mounting use cases for sectors like DeFi, for providing better savings accounts and credit scoring to investors. When looking to the future, Palihapitiya turned to the advent of Web3, the decentralized internet that threatens to eradicate Big Tech’s control of user data and enhance the availability of crypto networks.
“Web3 is rebuilding all of that stuff without an obvious leader. It’s completely headless. It’s entirely peer-to-peer. And I think that that’s both scary and exhilarating.” (Decrypt)
What is CBDC?
CBDC or Central Bank Digital Currency is a countries fiat currency (A government-issued currency that is not backed by a physical commodity like Gold or Silver) but in a virtual form. There are many advantages to this, including a reduction in cash dependence, higher seigniorage because of lower transaction costs as well as reduced settlement risk, which is often a concern with commodity-based currencies.
The importance of CBDC
Governments and banks aren’t sitting back while innovation runs its course. The Bank of England is making good on its promises to pursue CBDCs with serious intent, unveiling plans for research that includes a list of major collaborators. The list is vast, ranging from big businesses like Google and Spotify to industry experts and academics. The bank is seeking advice from a diverse patch of specialists to thoroughly “understand the practical challenges of designing, implementing, and operating a CBDC.” (Cointelegraph)
Other countries are taking more radical steps to implement crypto. El Salvador initiated its plans to mine Bitcoin using volcanic geothermal energy. The country’s President, Nayib Bukele, posted a video on Twitter this week announcing the “first steps” toward project fruition. (Decrypt) Thailand also stepped into the crypto space, declaring that its tourism authority plans to create a native utility token, TAT, to attract crypto enthusiasts to the country. (Cryptopotato)
Canada also entered the chat, announcing its first multi-cryptocurrency exchange-traded fund this week, spearheaded by EvolveETF and backed by Bitcoin and Ethereum. The new fund is now trading on the Toronto Stock Exchange (TSX) under the ticker symbols ETC and ETC.U. President and CEO of EvolveETFs, Raj Lala, echoed the sentiments of Palihapitiya in his remarks for creating the fund.
“Bitcoin has established itself as a store of value and is often referred to as digital gold. Ether is often referred to as digital oil and has become an essential building block for digital finance including NFTs and other DeFi applications.” (Cryptopotato)
This news comes with some frustration to those in the United States who are still impatiently waiting on approvals for crypto ETF requests. This seems to loom, in anticipation of greater regulatory guidelines to help guide crypto companies in operating in the utmost compliant fashion. That said, many are speculating that a Bitcoin ETF could be approved at any moment, serving as a potential catalyst to a strong end of 2021 performance for crypto.
As CBDCs and stablecoins gain traction, Visa is stepping up with its new Layer 2 Universal Payment Channel (UPC). This cross-chain interoperable solution promises to connect multiple blockchain networks, making the Visa network a place where digital currencies can be transferred with ease. By doing this, they are bringing the ease of crypto transactions to both consumers and merchants.
“We believe that for CBDCs to be successful, they must have two essential ingredients: a great consumer experience and widespread merchant acceptance. It means the ability to make and receive payments, regardless of currency, channel, or form factor. And that’s where Visa’s UPC concept comes in,” said Visa. (ChainBulletin)
Part of the brilliance of the Visa UPC is its future ability to act behind the scenes for maximum ease of transactions. By acting as a major player for making crypto interoperable, a seamless bridge can be created from traditional finance to crypto, and vice versa. In the same way that our smartphones provide the internet, Visa is enabling a space for cryptocurrencies to occupy a consistent place in the lives of the daily consumer.
What is beginning to take shape is a borderless economy powered by the security and efficiency of blockchain technology—a world where value is shared as easily as media, which is much needed in a Global economy in recovery. Each day the network effect is growing, which is now breaking ground in the consumer market. In the future, the economy will become more digital, and crypto will be the underlying value layer connecting us all.
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.
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