As a seasoned analyst with over two decades of experience in the financial industry, I have witnessed the evolution of technology reshaping the way we interact with money and the economy. The insights shared by Charles Cascarilla, CEO of Paxos, during the Bitcoin MENA event in Abu Dhabi resonate deeply with my own beliefs about the potential of blockchain technology to revolutionize the global financial system.
The CEO of crypto brokerage and stablecoin firm Paxos believes the global financial system will eventually run on blockchain rails.
During the Bitcoin MENA conference held in Abu Dhabi, Charles Cascarilla, both co-founder and CEO of Paxos, discussed their newly established Global Dollar stablecoin network with CryptoMoon in an interview. He explained how these stablecoins enhance the practicality of the U.S. dollar.
On November 5th, Paxos unveiled the introduction of their Global Dollar (USDG) digital currency and the Global Dollar Network. This initiative was launched in collaboration with various financial institutions including Robinhood, Galaxy Digital, and Kraken. The objective of this network is to establish a consortium that promotes the use of stablecoins.
Cascarilla clarified that this system enables associates to generate income from their account balances and also enjoy a portion of the financial advantages stemming from resources outside the platform.
As a crypto investor, I understand that the system is designed to motivate us through various key performance indicators. The main goal here is to empower distributors and financial institutions by providing them opportunities to generate yield, which they can then share with their users.
On this platform, we have two services available: one caters to individual users by offering interest, whereas the second allows businesses to decide on the distribution of interest. According to Cascarilla, these offerings fulfill the need in the stablecoin market for alternatives that generate interest.
He continued by saying that it’s designed to tackle the problem related to the stablecoin market, a place where many people seek to earn interest.
How stablecoins improve dollar utility
On October 29th, Cascarilla penned an open missive to the incoming presidential administration, expressing his viewpoint that the current global financial structure is antiquated and ineffective. He emphasized that this sector is crucial for the U.S., yet it functions at the pace of a post office.
He criticized its closed nature, comparing it to an intranet, which restricts accessibility and innovation:
“The financial system had been so closed, like an intranet, no one could access it. No one could build on it. It’s not how the world works today. And the last vestiges of the pre-internet world are falling away here with the introduction of stablecoins.”
He added that one of the important things about stablecoins is that they “change the utility of a dollar.” He explained that stablecoins being available 24/7 and supporting instant transfers anywhere worldwide makes it a huge improvement over dollars.
The executive pointed out that stablecoins allow anyone to hold a dollar without needing a bank account. Cascarilla said that more people have smartphones than bank accounts, which makes stablecoins a significant innovation.
“I think it could be the most transformative use of blockchain technology,” Cascarilla said.
Stablecoins role in Web3 adoption
In response to being queried about the role of stablecoins in bringing individuals into Web3, Cascarilla explained that these digital assets are designed to address an issue for users.
“I think the point of stablecoin is you don’t even know that it’s on a blockchain, and it’s pulling people into Web3 because it’s solving a problem for them. Ultimately, Web3 has to be about what problems am I solving for you?”
Cascarilla emphasized that Web3 needs to offer real-life benefits for people, not just be an interesting novelty, if we want society to embrace it. “It’s addressing issues and satisfying demands that people already face,” he continued, “and that’s exactly what stablecoins are doing.
He stated that simply saying “it’s sort of a neat thing” isn’t enough; rather, it needs to be clear that this will significantly improve one’s life for it to have a widespread impact on society.
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2024-12-12 16:14