Sam Bankman-Fried (SBF) pointed out that the blockchains behind cryptocurrencies have the potential to revolutionize remittances around the world. He argued that cryptocurrencies have the technology to create more underlying networks providing the opportunity to design more payment networks.
The CEO of the FTX exchange, Sam Bankman-Fried (SBF) revealed that cryptocurrencies “have specific use cases” that support their utility and power, such as for tokenizing assets and making digital transactions and payments.
SBF emphasized the following to the Point Forward podcast:
“In essence, one of the things that cryptocurrencies are is a way to tokenize assets. And that’s obviously what happened with Bitcoin, it had a digital asset that anyone could access and anyone could easily transfer to each other. And you could think of it like gold, but you don’t have to deal with gold bullion, much cleaner, and easier access and full auditable transaction history.”
Blockchains’ Potential
For Sam Bankman-Fried, the Blockchains behind cryptocurrencies have the potential to revolutionize remittances around the world and could make the market massive, which continues to “suffer from high fees,” as well as the underlying networks that provide the opportunity to design more payment networks.
“That’s one side. Another aspect is the Blockchain, it’s the underlying networks, which are really cool, and what they are is, among other things, a way to have a complete network where anyone can come in and open an account, anyone can send assets to anyone else instantly, at low cost, completely online, at the click of a button. Full ledger history of all this. It is a kind of perfect payment network to a certain extent.”
The CEO of FTX recalled that Blockchain technology has made different industries more efficient and allowed “cleaner” business models, by providing transparency and a fully digitized work scheme, with easier transactions, creating digital items, among other options.
SBF’S Hindsights
Sam Bankman-Fried has been one of the most enthusiastic about the bear market, claiming that it is temporary and that some projects and cryptocurrencies will come out stronger, and he is one of the least affected, as is FTX. In August, he argued that the worst of the crypto winter is “over” as long as there are no macroshocks.
SBF’s FTX has dodged most of a somewhat cold winter that has left some companies exposed and cold. Voyager Digital, Celsius, Babel Finance, and Three Arrows Capital have all experienced a freeze that has left some investors desperate to get their deposited funds back.
Even in July, SBF said that he and his exchange still had “a few billion” dollars available to help support struggling crypto businesses.
“Having confidence with consumers that things will work as advertised is incredibly important, and if it breaks, it’s incredibly difficult to get it back,” he said. However, he believes the worst of the liquidity crisis is probably over, adding that the industry has moved beyond “other big shoes that have to fall.”
By Audy Castaneda
