Mass adoption of cryptocurrencies is already taking place around the world, but not in the United States or Europe, nor does it have Bitcoin as its star asset. According to Daniel Fogg, Instead of the Rootstock smart contract platform, increased adoption is occurring in emerging markets, where cryptocurrencies are offering solutions to people’s everyday problems.
In an interview with Joe Hall from Cointelegraph at the Bitcoin Builders Conference in Miami, Fogg spoke about Bitcoin’s pragmatism, worldwide adoption, and how emerging economies are shaping the future of the crypto space.
According to Fogg, Emerging markets are leading the way in cryptocurrency adoption for one main reason: countries facing significant macroeconomic challenges. In his view, many people’s first meaningful digital banking experience will occur in emerging markets on crypto rails in the coming years.
“People on the street have a pressing need to protect their income, to access US dollars to obtain a loan. […] We are seeing these massive changes. For me, if you want to see the future of what I hope crypto is, today it exists in Turkey, Colombia, Nigeria, Argentina. Today it does not exist in the United States or the United Kingdom.”
Fogg believes that the crypto space is evolving through two major use cases for cryptocurrencies. One is focused on decentralized finance solutions for people looking for superior performance and alternative investment opportunities. Another use case involves people buying stablecoins pegged to the US dollar for savings and everyday payments in economies dealing with inflation, devaluation and other currency problems.
“I think there is kind of a fork in what DeFi could become, advanced DeFi, which is a lot of what I think the usage in America and Europe will be. […]and then everyday DeFi, which is what you’re going to see in emerging markets every day.”
Emerging markets offer an “opportunity for scale” to retail finance, Fogg said, adding that developing DeFi products for these areas is a key strategy for Rootstock and its sister company IOV Labs. Speaking about the pragmatism of Bitcoin, Fogg highlighted that although Bitcoin is a remarkable innovation, it is not enough on its own. According to Fogg, the cryptocurrency space does not yet have an established use case for billions of users, and it may take years to get there:
“In many cases, we think they are paying, saving, borrowing, lending, retail financing, etc. But there are many other use cases as well. We have to experiment to get there. And if we’re held back by a traditional conservative mindset around to what Bitcoin could be, I think that’s to the detriment of the world.”
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