- Armstrong believes that cryptocurrencies are the future of money with several use cases.
- Coinbase strives to clear a key industry hurdle: regulatory clarity.
The cryptocurrency market has long been associated with illegal activity and a lack of practical utility. Even the European Union has joined the opposition. In February, the European Central Bank criticized: Bitcoin [BTC]we call it “snake oil.”
However, Coinbase CEO Brian Armstrong dismissed these attacks, citing various crypto-currency use cases.
recently blogMr. Armstrong listed the challenges of traditional payments and how cryptocurrencies have solved them.
“Merchants still lose about 2% on every credit card transaction, wire transfers still have a $30 fee, and many transactions in the U.S. still take several days to clear.”
Layer 2 solutions have extended blockchain to solve high fees and delays in traditional global payment systems.
“Because blockchain has been extended with a “layer 2” solution, USDC can now be sent anywhere in the world for about 1 cent and in 1 second. ”
Additionally, the Coinbase chief also mentioned dollar-backed stablecoins, which currently exceed $100 billion, as a sign of another notable real-world use case. He even called cryptocurrencies “the future of money.”
Coinbase's future plans
In bull markets during traffic spikes, breakdowns and outages occur all the time. Coinbase has experienced several such outages over the past few days.
Armstrong told Bloomberg that Bitcoin's rise and traffic growth has exceeded the set model of 10x growth, so it needs to invest more in infrastructure upgrades.
Additionally, the Coinbase chief emphasized that the platform will evolve to accommodate three main categories of audience:
“We can be the infrastructure provider for traditional financial services and retail/institutional apps for people who want to use cryptocurrencies directly.”
Adding value to these three categories could increase Coinbase stock price and the native BASE token. At the time of writing, BASE was already up 7% on a daily basis, according to data from CoinMarketCap.
However, despite the approval of spot BTC ETFs in the US, the sector still needs regulatory clarity. To address this, Coinbase has chosen to support pro-crypto candidates in the upcoming US election.
