Bitcoin, NFT and 5 Major Trends Revealed
Efforts to Connect Traditional Finance and Cryptocurrency Ecosystems
[Asia Economy Reporter Ki Ha-young] Global payment company 'Visa' has revealed five trends in the cryptocurrency market. Visa stated that it will continue to collaborate to connect existing financial institutions and merchants with the cryptocurrency ecosystem to provide a network for everyone.
According to the industry on the 11th, Kai Sheffield, Vice President of Visa and Head of the Crypto Division, delivered a keynote speech at the 'Upbit Developer Conference 2021' hosted by Dunamu on the 1st and 2nd, marking his first official public statement on the cryptocurrency market in Korea.
The first cryptocurrency trend identified by Vice President Sheffield is Bitcoin. The MZ generation (Millennials + Generation Z) is accepting Bitcoin as a new financial asset class, and as of August this year, the global cryptocurrency market capitalization surpassed $2 trillion (approximately 2,328 trillion KRW). Among this, Bitcoin accounts for about $800 billion (approximately 931 trillion KRW) of the total cryptocurrency market capitalization.
Next, he introduced the growth of stablecoin-based infrastructure, referring to cryptocurrencies issued with fixed value, as the second market trend. Stablecoins can be used not only for saving and purchasing goods but are also becoming common in areas such as cross-border payments and B2B payments. The payment and financial infrastructure based on stablecoins recorded about $100 billion (approximately 116 trillion KRW) as of August this year, growing more than fivefold compared to the previous year. He forecasted that if stablecoins based on fiat currencies other than the dollar are launched in the future, various innovations will become possible and contribute to expanding the cryptocurrency ecosystem.
Thirdly, he emphasized that financial services are being provided not by physical companies but through programming code or online platforms. DeFi (Decentralized Finance), which refers to financial services such as deposits or loans secured by cryptocurrencies on blockchain networks, is actively being adopted worldwide. Recently, decentralized credit services have become common, creating various opportunities to instantly utilize cryptocurrencies, such as lending secured by cryptocurrencies and issuing and contracting digital products through smart contracts.
Vice President Sheffield mentioned the growth of the NFT (Non-Fungible Token)-based commerce market, which is emerging as a new topic in the industry, as the fourth trend. Visa expects NFTs to play an important role in various fields going forward and plans to support creators to participate in the NFT ecosystem. In fact, Visa recently purchased CryptoPunk 7610.
Lastly, he selected CBDC (Central Bank Digital Currency), a digital currency issued by central banks and functioning as legal tender, as a major market trend. Currently, many countries and central banks prioritize the adoption of CBDCs.
Vice President Sheffield said, "Visa's role in the emerging opportunities related to cryptocurrencies is ultimately to build a safe commerce environment," adding, "We will continue efforts and collaboration to connect existing financial institutions and merchants with the cryptocurrency ecosystem to provide a network for everyone."
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