According to Vitalik Buterin and Brian Armstrong, three important things should be important for cryptocurrencies in the coming year
Brian Armstrong and Vitalik Buterin explain how they see the year 2023: Cryptocurrency adoption will set the tone.
The year 2022 is coming to an end after demonstrating the need for many transformations within the cryptocurrency sector.
Towards a New Kind of Stablecoin
According to Armstrong, stablecoins should be monitored primarily by authorities, since they are issued by centralized companies. Therefore, it would be preferable to regulate them and assign them a series of criteria, to avoid a catastrophe similar to the bankruptcy of FTX.
Armstrong tweeted that “I often get asked: ‘What does regulatory clarity actually look like for crypto?’ So I outlined a realistic blueprint for this that regulates centralized actors while preserving decentralized innovation.”
For Vitalik Buterin, stablecoins are also an important element for the development of cryptocurrencies in 2023. In an interview with Bankless, the Ethereum creator spoke about the need to create tokens that are better equipped against the ups and downs of the economy, stating the following:
“If we can create a stablecoin that can survive anything, including a US dollar hyperinflation, which always happens eventually, then that is a great opportunity because it can become a lifeline for anyone going through this.”
Decentralized Wallets Will Increasingly Become More Important
On the decentralization side, the two leading figures in the industry are unanimous: cryptocurrency holders must own their assets, and innovation must be a priority on this side. Armstrong notes in his blog post the following:
“Self-custody wallets allow customers to store their own cryptocurrency in a way where they don’t have to trust anyone else. Technological improvements such as multiparty computing and social recovery will allow anyone to securely store their own crypto without needing to trust third parties.”
Later, he added that these wallets “should be treated like software companies and should not be regulated like financial services companies, because they never take possession of customer funds.”
Buterin, on the other hand, believes that the structures of cryptocurrency wallets need to be changed to make them easier for everyone to use. They will need to be able to support large numbers of people, provide sufficient security, and replace the traditional financial system. From this perspective, Ethereum is already the subject of experiments initiated by Visa.
More Equitable Regulations
For the Coinbase CEO, the rules must be global and apply to all countries in the world without exception, to prevent companies from fleeing to more tax-friendly, but less regulated territories, as FTX had done.
The biggest difficulty is, according to Vitalik Buterin, setting limits without impeding the development of cryptocurrencies, while remaining attractive to both companies and new users.
By Audy Castaneda
