Zeeshan Feroz - 'I Feel Central Bank-Backed Assets Are a Good Thing'

Zeeshan Feroz, CEO of Coinbase UK delved into this topic and more at the London Summit 2018 earlier Wednesday. This and more was on full display during his panel discussion, Cryptocurrency: Creating an Open Financial System for the World.

According to Feroz: “I feel this is a good thing and the sign of a future that is imminent. When you look at financial system, much of the risk stems from the fractional reserve model that we have.”

The death of retail banks? Rethinking the traditional models

Are retail banks’ days numbered? The death of these institutions may be overblown. In fact, “I don't think retail banks will disappear, though rather they may be forced to innovate and look for Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term elsewhere. They have been the traditional gatekeepers for the financial system, though this may be changing,” noted Feroz.

Banks will thus be forced to take new approaches, perhaps utilizing higher interest rates or other carrots, or even a proof of safe token. “I don't think these are disappearing any time soon and the consumers will be the ultimate winners as their products will improve. The financial system will approve namely as a result of competition as all parties will improve,” he explained.

Talking financial inclusion

Crypto businesses are passionate about core values, with an emphasis on financial inclusion. “I believe an additional currency will drive financial inclusion – a crypto asset is inherently easy to set up. There are numerous countries where less than 15% of the population has access to bank account,” reiterated Feroz.

Moving the financial system away from traditional bank to crypto asset can quickly expand this slice, creating global benefits. This is especially true for countries suffering from hyperinflation.

Is the financial system broken? Perhaps but neither retail nor central banks are going the way anytime soon. However, what their role is presently is certainly changing, and those that don't keep up with innovation and customer expectations will disappear in this new world that crypto is creating.

“A centralized currency will definitely force or foster mass adoption. These players certainly have the potential for driving adoption in ways that no singular player can, definitely over time in this space. This is particularly true in the case of infrastructure such as wallets,” added Feroz.

If this technology or space anticipates a central bank-backed currency, then the gains would be quite rapid. As such this could yield several benefits.

Talking Stablecoins

According to Feroz, “We are trying to Bridge Bridge The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service their clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Met The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service their clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Met Read this Term a gap between the fiat and crypt world. From a Stablecoin point of view there is a high range of flexibility and is incredible, but it does not do much to change the message in the right direction. Though Stablecoins in and of themselves is not a threat to anything.”