The Great Debate: Crypto and TradFi's Battle for Financial Dominance

场伟大的辩论：加密货币和传统金融（TradFi）之间的金融霸权之争

Cuộc Tranh Luận Lớn: Cuộc Chiến Giành Quyền Thống Trị Tài Chính của Tiền Mã Hoá và TradFi

<h2>Key Takeaways in a Discussion between Crypto &amp; TradFi Veterans</h2>
As the world of finance continues to evolve, one thing remains constant: volatility.
In the quest to find the perfect form of money, many asset classes have emerged since the unwinding of the gold standard, but none have truly held their value or possessed the type of stability and acceptance by every single individual on the planet.

 That is, until the emergence of Bitcoin, a decentralized digital currency that operates without a central bank or administrator.
 Bitcoin's importance lies in the fact that it has the potential to revolutionize the way we think about money and value. Its decentralized nature means that it is not subject to the same kind of inflationary pressures as fiat currency, which can be easily manipulated by governments and central banks.
Moreover, Bitcoin has the potential to enable financial inclusion for billions of people who are unbanked or underbanked. It can provide them with a way to conduct transactions and store value securely and independently, without the need for a traditional bank account.
While the road to widespread adoption may be long, MaskEX's Chief Strategy Officer <a href="https://twitter.com/BenCaselin?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor">Ben Caselin</a> believes that in due time, which may take decades, Bitcoin will become the ultimate stablecoin, represented as a lake of tranquility, a calm and steady lake where all the turbulent rivers of the financial system will converge.
<figure><img src="https://maskexglobal.sg.larksuite.com/space/api/box/stream/download/asynccode/?code=YjMzYTI3ZmI1MmUxOTU2MjI2OGE3N2QxMGNlN2U2NmRfcElJN2l4M3kyajduelBhTGZXeVRhRU1VdXNSaFk4N1FfVG9rZW46QnBya2I2aUFib0IwQnJ4SWp5amxJZ2NwZ0FkXzE2ODQyMjMyMjk6MTY4NDIyNjgyOV9WNA" alt="" /></figure>
<h2> 14 April MaskEX AMA on Twitter Space</h2>
 Recently, MaskEX hosted an AMA on Twitter Spaces on a hotly debated topic between crypto proponents and practitioners of traditional finance (TradFi) in the past few years.
 The Twitter Space started off with MaskEX’s Chief Strategy Officer, Ben Caselin throwing some initial questions to the main guest of honor, George Harrap, Co-founder of Step Finance and a veteran in the crypto space with over 10 years of crypto-related experience. This was followed by an additional Q&amp;A session that involved other guests of honor including Anadolu Aydınlı (Senior Product Manager of Coledi and currently based in Turkey), Andy Cheung (Trading Sales in Credit Suisse and currently based Vietnam) and Aman Kalra (Senior Marketing Manager of MaskEX and based in India).
 This discussion laid the groundwork for a Q&amp;A that ran for over an hour in total. Here are the main beats covered in the initial topics of discussion:
<h2>George Harrap</h2>
<ul><li>He believes that banks do not take a fancy to the emergence of the crypto industry and is trying their best to curtail the increasing crypto adoption phenomenon worldwide. He sees the TradFi system as essentially fighting a losing battle as the genie is out of the bottle — and now that crypto exists, we can’t unsee what it’s capable of.</li><li>George also strongly believes that the concept of private money is a breakthrough for human civilization that should be embraced. Banks and governments will try to retain control but it’s unlikely their rules will be enforceable in the long run.</li><li>George also shared his first-hand experience of using crypto in day-to-day life, from the peer-to-peer exchanges of the early days to buying a house using crypto! </li><li>We are also happy to hear that George is a satisfied user of the MaskEX virtual card (powered by Visa) as he expresses joy on how the card has helped to make his life easier.</li></ul>
<h2> Anadolu Aydınlı, LL.M</h2>
<ul><li>Anadolu thinks that governments and centralized TradFi systems come in a package and as long as governments rule nation-states globally, the TradiFi system will always be around. </li><li>However, he also sees some mandatory integration between the two worlds over time. That being said, Anadolu thinks that banks are not going to give up their influence easily, so crypto integration into TradFi is the most likely outcome. This could happen through banks buying up some centralized exchanges (CEXs), essentially resulting in CEXs becoming the antithesis of early crypto adopters. </li></ul>
<h2> Andy Cheung</h2>
<ul><li>He sees an increasing interaction between banks and the crypto industry over time.</li><li>He even foresees crypto becoming something of national importance in Hong Kong as we’re seeing in Hong Kong with Chinese banks right now. He believes that the global financial system will eventually evolve to a stage where crypto/fiat distinctions no longer exist and we have just one global currency.</li></ul>
<h2> Aman Kalra</h2>
<ul><li>Aman sees the crypto industry taking more market share from banks in the future but he does not believe crypto would replace banks. </li><li>He thinks crypto will face a hard time emerging as a victor in this conflict as banks and governments can impose rules that can curb further crypto adoption, as we’re seeing in India right now.</li></ul>
<h2> Questions from the Crowd</h2>
Following the Q&amp;A between the crypto veterans, the floor was then opened up for any questions from the public listeners and here are some of the biggest takeaways from the public: 
<ol><li>What would George recommend for people who are living in third-world nations where crypto is not so encouraged by the government? </li></ol>
 George: The mission of crypto is to create private free money for the world and have everyone in the same system regardless of where you are in the world. To get into space, you can explore various options, such as a variety of different crypto exchanges and platforms, such as p2p and Bitcoin. Even simply 'Googling' these terms will allow you to explore a vast array of crypto platforms that could help you get onboard.
 You can even keep your money in a centralized exchange like MaskEX. Ultimately, to get into the crypto ecosystem, you will need to be able to convert your local currency (fiat) into crypto in the first place and you will need to find local people who can transact with you. Once you are in the crypto ecosystem, you can do anything, such as interacting with centralized exchanges, buying NFTs and getting loans using DeFi. However, it is important to solve the first hurdle of getting into the crypto system before you can do anything else. 
<ol><li>What happens when stablecoins lose their pegs? What implications would this have?</li></ol>
 George: If you store your money with someone, you will need to trust them. When you use a trusted stablecoin like USDT or USDC, you will still be at risk. So, why not use a trustless stablecoin that has crypto collateral like DAI or there are other stablecoins on different chains. In Solana, there is USH and USDH.
Aman: I guess, essentially holding a stablecoin is similar to holding funds in a bank. You will still be at risk because you never know what assets they really have.
<h2> Concluding Statements</h2>
 George: The ultimate goal is that we use a decentralized, trustles form of value of transfer for the world. It doesn't matter what you care about in the world, whether it is the cost of education, healthcare etc. All of these things need money. Money is the problem that a lot of people don't think about, but it is actually the most important thing to think about because everything else that you depend on in your life depends on money.
 If you have a form of money that is a lie or a system that is rigged, which is the case for all fiat currencies and that is a bad thing. That is why we need a neutral form of currency exchange. Up to 1971, we had gold as a means of transfer and this was the case thousands of years prior to that. Similar principles are applied to crypto and this means we are just going back to the natural state of human economics.
 If we can get back to a standard form of currency, maybe that will eventually be Bitcoin.

MaskEX Academy Team

Homepage

Breadcrumbs

generator

https://blog-cms.maskex.com/assets/img/posts/_1200x630_crop_center-center_82_none/Crypto-and-TradFi_s-Battle-for-Financial-Dominance.jpg?mtime=1684223213

https://blog.maskex.com/the-great-debate-crypto-and-tradfis-battle-for-financial-dominance

referrer

robots

twitter:card

twitter:creator

https://blog-cms.maskex.com/assets/img/posts/_800x418_crop_center-center_82_none/Crypto-and-TradFi_s-Battle-for-Financial-Dominance.jpg?mtime=1684223213

twitter:image

twitter:image:height

twitter:image:width

twitter:title

The Great Debate: Crypto and TradFi's Battle for Financial Dominance | MaskEX Blog