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Cryptocurrencies will drive 25% of global GDP within a decade
- Coinbase CEO Brian Armstrong met with Ark Invest founder Cathie Wood to discuss all things BTC at the Sate of Crypto Summit 2024.
- Armstrong believes cryptocurrencies will provide a “good financial infrastructure” to the world, particularly helping those who are unbanked or work internationally.
- He also highlighted the importance of Layer 2 in achieving mainstream adoption of cryptocurrencies, citing scalability as key.
- Ultimately, Armstrong predicted that up to 25% of global GDP could be supported by cryptocurrencies due to their efficiency compared to traditional financial solutions.
It was a great weekend for cryptocurrency conferences. In Europe, the BTC Prague Conference was held, while in New York residents were able to enjoy the State of Crypto Summit 2024. One of the main events of the latter was a discussion between two of the biggest influencers in the industry: the CEO of Coinbase Brian Armstrong and Ark Invest CEO Cathie Wood.
Related: The EU’s largest telecom company, Deutsche Telekom, will enter Bitcoin mining
U.S. regulatory clarity hinders a powerful financial infrastructure
The interview began with Wood asking Armstrong about Coinbase’s broader philosophy and how he plans to navigate the world of cryptocurrencies in the future. The response has focused heavily on financial independence and providing cryptocurrency-based infrastructure to those who may not have access to banking services or live in otherwise corrupt financial systems.
[The current financial system] it’s slow, it’s expensive, there’s unequal access around the world… Coinbase’s mission is… to increase economic freedom around the world.
With smartphones readily and cheaply available around the world, Armstrong highlighted that the financial facilities of cryptocurrencies can be exploited by anyone with access to the internet. This gives people the opportunity to participate in aspects such as returns, fair property rights and the ability to protect themselves from inflation.
Armstrong believes the biggest current obstacle to achieving this goal is (at least in the United States) regulatory clarity. But as the world of digital assets becomes a hot topic in the upcoming presidential election, he is confident that the US government is on the right track.
Layer 2s Like Base sends Blockchain into its next era
One of the main talking points for the duo was the potential power of Coinbase’s Ether-based system Level 2 networkBasic.
Armstrong labeled it one of the “hottest products” of blockchain technology at the moment. One of the main reasons (aside from the fact that he is the CEO of the company) is this Layer 2 networks are enablers. He argues that scalability solutions are the bridge that can turn the powerful ideas around blockchain into reality.
“Layer 1 networks were the first thing that happened in the cryptocurrency world… they were a little slow, they were a little expensive, but you could see the potential. With the advent of Layer 2 online it’s a a bit like when the Internet went from dialup to broadband.”
Armstrong touched on revolutionary use cases such as sending USDC globally “for free,” which may represent a major evolution for how international companies remit employees, among other functions.
With 10% of the world’s population already wanting to invest in cryptocurrencies, Armstrong believes the future could see a quarter of the world’s GDP driven by “crypto binaries” within ten years.