The sessions on the second day of the Qatar Economic Forum, organized in collaboration with Bloomberg, discussed the future of cryptocurrencies, which have garnered significant attention from investors. Amidst a divide between supporters and opponents, the first session examined the ability of cryptocurrencies to sustain themselves in light of the lack of recognition from central banks worldwide.
Michael Novogratz, CEO and founder of Galaxy Digital, stated that while cryptocurrencies may be considered a luxury in developed markets, they are essential in emerging markets and a basic human right. He emphasized that the biggest challenge facing the future of cryptocurrencies like Bitcoin is that they are already a reality utilized by many developers, programmers, and investors, facilitating funding and money transfers globally. Novogratz noted that the cryptocurrency market is becoming more global than treasury bond markets in the United States or Japan, and that it requires clear and specific regulations. He predicted that in a few years, there will be clearer rules regarding the acceptance of cryptocurrencies as official payment methods, depending on central bank efforts in this area.
Changpeng Zhao, founder and CEO of Binance, believes that China's retreat from recognizing Bitcoin as a trading currency is neither the first nor the last instance. He pointed out that many individuals in China are involved in cryptocurrency mining and predicted that the current pressures on cryptocurrencies will not last long. He added that El Salvador's support for Bitcoin might later lead to competition among governments, particularly for smaller nations.
Jim Ovia, founder and chairman of Zenith Bank in Nigeria, mentioned that over 50% of Africa's population does not engage with banks, creating a successful environment for fintech companies, especially in Nigeria, which has a large economy and a population exceeding 200 million. This situation presents significant opportunities for the growth of online payment markets, naturally supporting fintech technologies. Ovia stated that among Africa's 1.3 billion inhabitants, at least 350 million do not use banking services, relying instead on electronic payment methods and mobile and internet applications, further fostering a successful environment for fintech firms. He stressed the need for banks to support fintech companies in Africa, which are rapidly growing despite their short existence, asserting that banks and fintech companies are essential for attracting those unbanked individuals to banking databases.
Dam Jain An Jidia, CEO of SNOOP, suggested that banking systems should consider the extensive proliferation of cryptocurrencies, which adds more security to cryptocurrency transactions instead of ignoring them. He argued that the integration of traditional banking platforms with digital technology platforms would benefit all parties involved. When discussing the regulation of cryptocurrencies, he stated that banks must be both technically and legally qualified for this purpose, not merely focused on the monetary aspect, but also on environmental dimensions to ensure that mining does not cause ecological damage.
Blythe Masters, CEO of Motive Capital Corp, stated that cryptocurrencies are one of the blockchain technologies, requiring global regulatory authorities to establish guidelines for their trading, especially regarding their valuation, impact on inflation, and their connections to traditional trading in commodities like gold and other investment currencies. She added that trading platforms for these currencies should be subject to regulatory oversight, given that millions of dollars are being traded in the cryptocurrency markets, necessitating strict regulation of all parties involved, including issuers and end beneficiaries. She highlighted that for every four dollars spent globally, one dollar is spent on technology and its various products and services.
