eToro’s CEO is Convinced About The Potentials of Blockchain Technology
During an interview, Yoni Assia, CEO of eToro, talked about cryptocurrencies and blockchain technology. The company is one of the largest social trading platforms around the world and it aims at making cryptocurrencies mainstream.
eToro has 10 million users around the world and continues to grow. Moreover, the company was able to establish itself as a strong player in the financial world.
During the interview, he mentioned that they want to increase the number of individuals around the world that trade and use virtual currencies. This is why just a few weeks ago, the company decided to cut spread on crypto assets.
He says that one of the reasons that do not allow cryptocurrencies to scale is the fact that wide-scale user adoption is the fact that there is a lack of understanding of these assets. This is why eToro provides educational material and a platform where newcomers can learn from veteran crypto traders in the platform. He has also mentioned that the asset is still very young and it needs some more years to solve the challenges that it is currently facing.
Although the market has experienced a big drop this year, new users continue to join the platform. Bitcoin reached an all-time high of $20,000 dollars back in December 2017. Since then, it cannot recover this price level. However, Assia marks that some users that invested in the platform decided to move to other non-crypto assets trying to diversify their portfolio.
At the same time, during the last month, there has been a virtual currency that appeared in the media several times. We are talking about XRP, which surged over 100% in a very short period of time. Ripple has also unveiled its xRapid product that leverages the capabilities of XRP to reduce transactional costs and times for cross-border transactions.
Yoni Assia said that the most popular crypto in the platform is XRP and that clients tend to diversify their portfolios with new cryptocurrencies every time they are added.
The company has decided to partner with several athletes and major sports teams around the world. Assia explains that they have sponsored seven premier league clubs in the United Kingdom and the German football team Eintracht Frankfurt.
When he was asked about the regulatory environment he said that it is very important to have a legal framework that would protect customers. If that happens, there will be greater adoption, including institutions and other intermediaries.
He then talked about traditional financial companies and how they work side by side with virtual currencies. He says that eToro does not think that traditional finance will disappear overnight. Indeed, there are several financial institutions that are exploring different opportunities offered by cryptocurrencies and blockchain technology.
Furthermore, he said that blockchain and cryptocurrencies will have a deep impact on global finance. On the matter, he commented:
“We believe that crypto, and the underlying blockchain technology, will have a huge impact on global finance. Blockchain has the potential to revolutionize finance by enabling the tokenization of all assets, not just currencies. In time, we believe that we will see the greatest transfer of wealth ever onto the blockchain.”
He was asked about the division between cryptocurrencies and blockchain technology. There are some important figures around the world and in the financial industry that support blockchain but not Bitcoin and virtual currencies. This is the case of JP Morgan’s CEO, Jamie Dimon, whose bank has already developed a blockchain-based platform.
Assia said that he compares cryptocurrencies and blockchain technology with the internet. For him, the relationship between blockchain technology and Bitcoin is similar to the one between the email and the internet. Bitcoin is not the only use case that blockchain technology allows for. There are several other industries that have embraced blockchain technology to improve their services and products.
He finished the interview saying that there is room for many other cryptocurrencies to surge and have a place in the market.
“There absolutely could be room for a few cryptocurrencies to exist, but it’s too early to say which ones this could be at this stage,” he ended.