Bitcoin Industry Needs Supportive Jurisdictions: Insights from Bitfinex and Blockstream Executives
Summary:
Bitfinex CTO Paolo Ardoino and Blockstream CEO Adam Back discussed the impact of Bitcoin and securities tokenization on the finance industry. They believe the antiquated technology in banking would have to adapt to increasing user expectations, particularly due to the benefits offered by tokenization. They also emphasized the need for the Bitcoin industry to align with supportive jurisdictions. These discussions took place alongside the release of previously unseen emails between Satoshi and Adam, and an update on the upcoming maturity of the Blockstream Money Notes.
In a recent interactive session, Bitfinex's chief technical officer, Paolo Ardoino, expressed that the Bitcoin industry should align with those jurisdictions that are more welcoming towards it. This statement was made during a discussion with Blockstream CEO, Adam Back, regarding Bitcoin and the tokenization of securities on February 27.
Both executives concurred that the impact of securities tokenization could be significantly transformative for the financial sector. One such effect might be a shift in user expectations. Ardoino pointed out that banks are still using antiquated messaging and settlement technology, which causes problems regarding speed and interoperability. Nevertheless, tokenization could offer the advantages of Bitcoin to the masses.
Back added to the discussion by suggesting that tokenization will curtail costs and allow small businesses to penetrate the market. ETFs (exchange-traded funds) related to Bitcoin (BTC) could simplify tax reporting and inheritance planning, providing access to a new cohort of BTC users, thereby fostering innovations like BTC mortgages.
Previously unreleased emails exchanged between Satoshi and Adam, discussing Bitcoin four months before its launch, were also featured in the conversation.
Additionally, the conversation addressed how the evolution towards more reliable financial products within the cryptocurrency industry could usher in a shift in investor focus away from mediocre tokens. Back mentioned that Blockstream Money Notes, exposing users to BTC mining, will mature by this summer under Luxembourg law.
Bitfinex Securities operates under the licenses from Kazakhstan’s Astana International Financial Centre (AIFC) and El Salvador. However, these jurisdictions tend to raise eyebrows among investors and issuers, according to Jesse Knutson, Bitfinex's head of operations. Ardoino, in response, suggested that Bitcoin industry stakeholders should appreciate jurisdictions that have extended the most support to the industry.
Bitfinex Securities was inaugurated in the AIFC in 2021; it began its operations in El Salvador in January. In October, it disbursed a bond tied to Tether (USDT) on Blockstream’s Liquid Network, a second-layer BTC protocol. Offering this bond initially received a lukewarm response.
Published At
2/27/2024 10:45:33 PM
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