Cryptocurrencies expanded all over the world. They were able to attract investors and enthusiasts. At the same time, it has also led some experts to believe that cryptocurrencies could replace fiat money or completely change the financial world.
This time, the crypto investor and co-founder of the Luno cryptocurrency exchange, Marcus Swanepoel, said that virtual currencies will annihilate the traditional banking system. During an interview with Express, he talked about the banking system and the future of cryptocurrencies.
Although he mentions that he does not exactly know how virtual currencies will evolve, he believes that Bitcoin and Ethereum will be developing a stronger financial system. At the same time, he confessed that he is not against banks or financial institutions but he explained that the current system is not able to fit in the new digital era.
As many other experts and individuals say, cryptocurrencies are currently used to gamble and speculate with their price. Users think that they can become rich from one day to the other, but this is not what virtual currencies were created for.
“What we are building, in the long run, is going to be useful for people in their everyday lives, they will be able to use it for transactions,” he said.
Then he talked about how regulations play an important role in the whole ecosystem. There are several countries that decided to control the cryptocurrency market and create clear legal frameworks for virtual currencies and companies to operate. He mentioned that Luno has been operating in a pragmatic way since it was created and that it is one of the ‘more pragmatic players in the industry.’
At the moment of writing this article, Luno is the 94th largest virtual currency exchange in the market. It handled in the last 24 hours $2.07 million dollars in trading volume. Additionally, the most important trading pairs are BTC/ZAR, BTC/NGN and BTC/EUR, accounting for more than 95% of the total trading volume in the platform.
Banks and financial institutions know that virtual currencies can be very harmful to their businesses. For example, Ripple Labs has created a network of institutions that use blockchain technology and even the cryptocurrency XRP to process cross-border transactions.