In an interview with Bloomberg, executive chairman of Blockchain Research Institute Donald Tapscott shared his opinion about the future of cryptocurrency, decentralized exchanges and the fate of traditional assets.
Tapscott has suggested that in the near future, the intrinsic qualities of decentralized exchanges will make them compatible with traditional assets, he said:
“All assets, not just currencies, but traditional securities will be traded on decentralized exchanges.”
His reason for the assertion comes from the fact these exchanges offer the requisite transparency for tracking bad players in the financial market, and as a matter of fact, this core characteristic will enable decentralized exchanges to dominate over the centralized exchanges in the future.
Tapscott seems to think decentralized exchanges in China are feasible despite the lack of government oversight as an intrinsic quality of these exchanges. However, since China banned cryptocurrency trading, and according to him, “the government of [China] is quite serious about hurting crypto,” his understanding of the situation is that of a “weird dichotomy” as the nation sees blockchain playing an important role in the future economy, nonetheless has made an enemy of the underlying digital asset class.
However, the banning of exchanges and the current action against mining operations can only hurt any foreseeable future with blockchain. Tapscott finds it unnecessary and while Bitcoin seems to be championing the crypto space at the moment, he argues that:
“In 20 years we are not going to be using Bitcoin in China. The Chinese people will use the RMB, only the RMB will become a cryptocurrency, the Central Bank of China will turn it into a digital currency.”
On the subject of security, Tapscott argues that few things can be solved by technology alone, and while crypto space may be prone to bad actors, sometimes the problem isn’t with the technology but rather bad governance which is structured in a centralized manner. He opines:
“Blockchain is much harder to hack than the traditional systems, our banks, our governments and [financial] institutions.”
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