Vincent Boy, market analyst for IG France, paints a comprehensive picture of the opportunities and risks associated with the cryptocurrency industry and the adoption of blockchain technology.
Opportunities related to the facilitation of payments
The cryptocurrency sector continues to interest both individuals and companies, and it is above all on the private side that many opportunities are being created. IG France points out that ” many actors of the traditional economy are investing more and more heavily in the sector “These players are offering more and more web services3, both in the payments sector and in cloud activities such as the partnership between Google and Coinbase.
In this emergence of blockchain technology, we find the debates about CBDC, these central bank digital currencies that we talk about often. IG France underlines the advantages of these new forms of currency, such as the reduction of the risk of fraud or double transaction as well as the reduction of costs, while being aware of the more centralized nature of this offer. Among the most striking examples is the EYuan, the use of which during the Winter Olympics reached more than $ 300,000 (equivalent) every day. More than 261 million wallets have currently been created, 12 cities have adopted it, and over $ 13.7 billion has been circulated through the EYuan.
Despite the emergence of blockchain technology, it is mainly the companies behind Ripple or Chainlink that collaborate with traditional payment systems such as SWIFT, offering centralized alternatives, but going through the blockchain. As for bitcoin, it is more forgotten by institutions and companies, also because of its very speculative image and its decentralization that can get in the way. Bitcoin therefore continues to defend the same values of 2008, against a centralized banking and financial system, it remains the decentralization solution designed for people and without intermediaries.
Furthermore, the cryptocurrency market remains highly correlated with the performance of digital assets, as Binance and crypto.com settle in France and invest hundreds of millions, their native token continues to decline. Meanwhile, Ethereum has not seen a particular revaluation after “The Merge”, although its monetary creation has significantly decreased since this event and the creation of new tokens is much slower than if Ethereum were still in PoW.
This growing interest from institutions and companies may partly explain Bitcoin’s fall in dominance in the cryptocurrency market, although it remains very dominant, it is likely to see a desire from the private and public sector to push towards other payment systems. and forget Bitcoin.
IG France therefore shows a bearish market situation, while underlining the adoption of the technology by many giants, such as EDF and Société Générale.
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Observer of the monetary, economic and social revolution.