Nasdaq CEO, Adena Friedman, says that digital currencies are here to stay and will play a role in the future.
Friedman published a post on LinkedIn titled ‘New chapters in innovation and disruption will be written in 2019’, outlining scenarios of crypto industry’s development. Speaking ahead of Davos World Economic Forum, which focuses on “Globalization 4.0” this year, Friedman makes some interesting predictions. Cryptocurrencies, she says, could still be a global currency of the future.
The theme, “Globalization 4.0”, is a consideration of how both private and public sectors can collaborate to effect a more equitable, stable and transparent world. In her writings, Friedman identifies a number of trends that she suspects will continue to emerge and grow in 2019 – in line with the subject area to be discussed at Davos.
Cryptocurrencies, specifically Bitcoin, deserve to be a part of the global economy of the future, according to Friedman.
Friedman considers cryptocurrency as a trend which has emerged and one she feels will develop much further in 2019. The CEO clarifies that cryptocurrency has gone through the classic initial phase distinguished by early pioneers. This, in turn, gave way to the hype, the generation of a wave of interest followed by the sobering up of the sector via 2018’s bear market.
Friedman believes that there are two potential outcomes for cryptocurrency at this point. The first possibility is that it achieves utility following years of steady and sustainable growth – integrating into the economy as it does so. The alternative is that it simply doesn’t achieve broad adoption.
Friedman argued that the cryptocurrencies “will either find a practical utility and weave into the very fabric of our economy–or it won’t. It will fail to achieve mass adoption due to its limited applications.”
“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”, Friedman said.
Additionally, Friedman lauds the invention as a “tremendous demonstration of genius and creativity” and that it “deserves an opportunity to find a sustainable future in [our] economy”. The Nasdaq CEO is of the view that governance and regulatory clarity are two aspects which are imperative in establishing the utility of crypto and achieving more stable values.
Nasdaq’s Investment in ErisX
Nasdaq is expected to launch a Bitcoin futures product within the first quarter of 2019. It also emerged last month that Nasdaq – alongside Fidelity Investments – had invested heavily in crypto startup, ErisX. ErisX is an intermediary friendly, CFTC regulated futures exchange. Cryptocurrency exchange Gemini has also partnered with Nasdaq. It has deployed Nasdaq’s SMARTS market surveillance to assist the company in remaining a ‘rules based marketplace for all market participants’.
Friedman cites Nasdaq’s recent involvement with ErisX as a collaboration that is helping cryptocurrencies gain the trust of investors.
The CEO concludes by stating, “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.”