Loading...One of the famous Big-4 auditors’ companies in the world, KPMG, has come with a fresh report dedicated to the the stages of crypto development. This report feels more brave than previous one that Cryptofonia.pro has recently scrutinized. In previous report KPMG takes a central banks digital currencies as valuable tool to get financial transactions more fast, and feels shy talking about the fate of non-governmental cryptocurrencies.
The fresh report was developed together with Coinbase top-managers and deliver their classification of crypto development stages. The current stage is about speculation and not more. The second one may trigger the third one. Both stages are deemed to be more thoughtful since the second stage is about “crypto institutionalization” and the last one is about “utility”.
KPMG chief economist Constance Hunter argues that “cryptoassets have potential. But for them to realize this potential, institutionalization is needed. Institutionalization is the at-scale participation in the crypto market of banks, broker dealers, exchanges, payment providers, fintechs, and other entities in the global financial services ecosystem. We believe this is a necessary next step for crypto to create trust and scale.” She cites one of the crypto “issues” – high volatility: “Consider for a moment extending a person or entity a loan in a cryptocurrency… The value is too unstable at the moment to be assured repayment. Under these conditions, neither lenders nor borrowers would be willing to take the risk of transacting in cryptocurrencies.”
At the same time her “remedy” to cure it looks dubious: “More participation from the broader financial services ecosystem will help drive trust and scale for the tokenized economy and help the crypto market grow and mature… Crypto products and services are already starting to pivot and the global financial services ecosystem is also beginning to retool itself for the tokenized economy.” The current condition of world financial markets may be better to be characterized as they lack trust. These markets and their rules gave a birth to 2008 financial crisis and may drive the world into worse recession according to projections of JPMorgan. So there is no doubt that Wall-Street has no capacity to instill more trust into cryptocurrencies since it at visible extent lacks trust itself. One of the prove for this is recent poll conducted at Twitter-account of famous US libertarian Ron Paul.
