In an interview with Ark’s Cathie Wood, Coinbase founder and CEO Brian Armstrong shared his thoughts on some of the crucial things happening in cryptocurrencies, as well as some of the platform’s latest developments. The conversation took place at the State of Crypto Summit 2024.
In an interview with Ark’s Cathie Wood, Coinbase founder and CEO Brian Armstrong shared his thoughts on some of the crucial things happening in cryptocurrencies, as well as some of the platform’s latest developments. The conversation took place at the State of Crypto Summit 2024.
Layer 2
Armstrong emphasized the importance of the exchange’s Layer 2 solution, Base, in advancing blockchain technology. He compared the transition from Layer 1 to Layer 2 networks to the shift from dial-up Internet to broadband Internet, emphasizing the improved speed and reduced costs.
Layer 2 enables features like instant and free transfers of USD currencies globally, which revolutionize payments, remittances and other economic activities by reducing friction: “That’s a game changer for things like payments and remittances and, You know, all kinds of things that just reduce friction in the economy,” he said.
Godfrey BenjaminDeFi
Armstrong also highlighted the evolution of cryptocurrencies from a mere asset class, now worth more than a trillion dollars and used by more than 400 million people, to a tool of real-world utility, such as payments, voting, decentralized social networks, etc. crucial to increasing global cryptocurrency adoption, potentially reaching over a billion users.
Vladislav SopovThe transformative potential of peer-to-peer transactions lies in eliminating intermediaries, thereby reducing economic friction. Real-time settlement through cryptocurrencies can eliminate middlemen and the risks associated with intraday settlement.
The real potential and innovation here comes from these peer-to-peer transactions. How do we eliminate intermediaries? Cryptocurrencies really make many of those middlemen unnecessary. If you can do instant settlement, you don’t need to have a middleman with some type of risk that is introduced with intraday settlement. If it is just real-time deals, middlemen can be eliminated and frictions in the economy can be reduced.
Armstrong envisions a future where cryptocurrencies drive a significant portion of the world’s GDP, due to their efficiency. He predicts that within a decade, 25% of global GDP could be conducted through crypto rails, driven by its ability to streamline and simplify economic transactions.
