Crypto could still become “a global currency of the future”

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Adena Friedman, President and CEO of Nasdaq Inc., says cryptocurrency “deserves an opportunity to find a sustainable future in our economy,” in a post on LinkedIn, published January 20.

Writing ahead of his appearance at the World Economic Forum in Davos this week – which opens today, Jan. 22 – Friedman said the Nasdaq believes crypto will have a role to play in the future, characterizing ” the invention itself [as] a formidable demonstration of genius and creativity.

So far, she argued, crypto has evolved through what it calls a “classic invention lifecycle” – from its first path forged by pioneers in crypto and economics. , at a time of the hype, the proliferation of new market entrants, and now, more recently, “a dose of reality”. Crypto therefore finds itself at a crossroads, she says, balancing one of two outcomes:

“1) Either the innovation finds practical utility followed by years of steady and sustainable commercial progress and integration into the economic fabric (eg Internet); Where

2) The invention fails to be widely adopted and its commercial applications as a medium of exchange are limited (eg, the Segway).

The CEO argued that for crypto to evolve into a practical and usable invention with stable value, it requires “governance and regulatory clarity.” She also suggested that the two are, at their core, “antithetical to the original intention. [of] a decentralized and ungovernable world currency.

Noting the need for a transparent and fair crypto exchange market in particular, Friedman noted that the Nasdaq has provided its in-house technology to help start-up exchanges forge best practices.

As reported, Nasdaq has provided its SMARTS market surveillance technology to major industry players such as the Winklevoss twins Gemini exchange, which enables the platform to monitor suspicious trading behavior with the aim of preventing market manipulation.

Earlier this month, DX Exchange, a platform that uses the Nasdaq’s Financial Information Exchange (FIX), started trading in traditional tokenized cryptocurrencies and stocks.

In December, ErisX, an institutional marketplace for spot and futures cryptocurrencies, raised $ 27.5 million from Nasdaq Ventures and Fidelity Investments.


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