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OKEx CEO Talk: How Far Are We From Crypto Mass Adoption?

2020.06.16 Kelvin

Crypto has been establishing a stronger and stronger presence since the birth of Bitcoin 10 years ago. A great amount of progress has been made towards a more decentralized and cashless world. The rise of tools like Apple Pay and online payments are slowly moving the world towards the idealized mass adoption we crypto lovers have all been dreaming of.

I’ve known Bitcoin for years now, but I understand the uncertainty the majority of people have with crypto. They want things to be simple, with low to no financial cost for when they make mistakes while learning to use crypto. Another issue standing in the way of adoption is that the crypto industry continuously faces low recognition as it grows at a rate faster than regulators and security experts. With the bad apples in the industry and increasing number of scams and hacks, consumer confidence is hard to gain.

Yet a recent Fidelity Investment survey conducted during the COVID-19 pandemic showed that about a third of large institutional investors now own digital assets such as Bitcoin. How far are we from achieving mass adoption? What can we do to encourage the public to accept Bitcoin?

How to accelerate mass adoption

To drive the mass adoption of crypto, I think that it is important to instill confidence in the public – let them understand the benefits of blockchain technology, that it does more good than harm to the existing financial system. Here are some of my thoughts to accelerate the process:

1. Better cooperation between exchanges and governments

Many have navigated these waters before, and arguments have been made regarding a standardized framework on regulating crypto for years. However, except implementing Anti-Money Laundering (AML) and Know-Your-Client (KYC) on crypto exchanges to verify the identity and risks involved, other regulations in the industry are lagging behind, which might have contributed to the lack of trust from the public.

I’m not saying regulation is mandatory — we are the believers in decentralized finance, why would we want the centralized government to regulate us? All I suggest is that it doesn’t hurt for governments to show more support to the crypto community, instead of viewing it as full of monsters and scammers trying to deceive the public. Considering crypto as legal tender, for instance, is a good place to start; or simply lifting restrictions on trading crypto, like the ones the Reserve Bank of India had put in place in early 2018.

2. Exchanges need to focus on enhancing their security and risk management systems

We’ve seen a number of unfortunate incidents in 2019, where users were unable to retrieve their assets from exchanges (such as the hack of Cryptopia and the disappearance of private keys on QuadrigaX). These have undoubtedly lowered the public’s confidence in using crypto. What can exchanges do to regain people’s trust?

It is important for exchanges to prioritize security and adopt an advanced system to protect users, as proficient hackers are constantly catching up to break into users’ accounts at the same time. At OKEx, we are constantly improving our sophisticated risk management system, always implementing comprehensive updates to safeguard users’ assets at all times. Only exchanges that operate with high integrity can win over those that don’t believe in crypto.

3. Educate the public

When people are skeptical about crypto, it’s difficult to see significant increases in adoption. Ultimately, we want users to understand the benefits of using a decentralized form of money and grow to be comfortable enough to invest in it as well. That’s why education is a major focus of OKEx this year.

OKEx Academy was built to educate people on blockchain and crypto, offering insightful articles for both newbies and advanced traders, including trading strategies, beginner tutorials, industry and market analyses, etc. True understanding of the technology, benefits and risks, as well as volatility involved with crypto trading, makes it easier for the public to comprehend this “new” form of money.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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