Benzinga – With people’s confidence in Bitcoin (CRYPTO: BTC) and its limited supply, the digital asset has the potential to become a global reserve asset, Jamil NazaraliCEO of EDX Markets, said Tuesday.
In an interview with Benzinga, Nazarali, who will speak at the upcoming Benzinga Future of Digital Assets conference on November 14, delved deeper into the challenges and opportunities presented by the digital assets space.
He said EDX Markets, founded about a year and a half ago, was created to bridge the gap between traditional finance and the world of digital assets.
Nazarali highlighted the differences between traditional financial exchanges and crypto exchanges, noting that the latter often retain customer assets, an uncommon practice in traditional finance.
“EDX Markets is supposed to be like traditional finance, but for crypto assets,” he explained.
Discuss the potential of Bitcoin and Ethereum (CRYPTO: ETH), Nazarali expressed his optimism.
“I think they’re here to stay. I think there are strong use cases for them, and I think they’ll see more and more adoption over time.”
He highlighted the functionality of Bitcoin compared to gold, particularly in terms of ease of transfer and its potential as a reserve asset.
Also Read: Bitcoin Whales May Ditch Holdings, Leading to Price Volatility: Report
“Bitcoin is much easier to transport than a bag of gold,” he noted.
On the subject of decentralized finance (DeFi), Nazarali expressed skepticism, particularly regarding the challenges of implementing appropriate anti-money laundering controls in a decentralized environment.
He believed that without a central authority, many DeFi protocols could be excluded from the banking system.
Asked about the possibility of cryptocurrencies becoming a global reserve asset, Nazarali replied: “Ultimately, what is necessary for something to be a reserve asset is for people to believe in it. »
He added that as long as people believe in its value and given its functionality, Bitcoin has a strong case to be considered a reserve asset in the future.
Speaking about the regulatory challenges facing the crypto industry in the United States, Nazarali highlighted the importance of clear rules and frameworks within which businesses can operate, suggesting that uncertainty is an important deterrent for many companies.
Read next: Celsius successor aims to revive crypto lender: What does this mean for creditors?
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