Cryptocurrencies will have a role in the future - the head of Nasdaq
- Adena Friedman outlines scenarios of crypto industry development.
- Nasdaq bets on cryptocurrency development.
Cryptocurrencies and specifically Bitcoin deserve to be a part of the global economy of the future, according to Adena Friedman, the president and CEO of Nasdaq.
"It is difficult to ignore the huge amount that investors, including some of the most sophisticated global investors, have poured into digital currencies in recent years. The invention itself is a tremendous demonstration of genius and creativity, and it deserves an opportunity to find a sustainable future in our economy," she wrote in a LinkedIn post ahead of the World Economic Forum at Davos that started this week.
The head of Nasdaq believes that the concept of crypto has passed the initial stages of invention cycle, characterized by hype, an exponential growth of newcomers mesmerized by the novelty and the return to reality.
Now everything depends on whether the innovation can find a practical utility or stay outside commercial use and fails to achieve mass adoption. According to Friedman, there are three ingredients to establish cryptocurrency practical application on a mass scale: stable value, regulatory clarity, and governance. However, all of them are the opposites to the principles of decentralization.
Meanwhile, Nasdaq is positive about cryptocurrencies.
"While this year will be another proving ground for cryptocurrencies, we believe digital currencies will have a role in the future. The extent of its impact will depend on the evolution of regulation and broader institutional adoption." she said.
The company has invested heavily in the industry.
Author
Tanya Abrosimova
Independent Analyst
