Cryptocurrency

Addressing The Gap Between Cryptocurrency and Fiat Currency

Cryptocurrency is becoming increasingly popular as a worldwide phenomenon. According to the most recent Chainalysis Global Crypto Adoption Index, overall adoption increased by 880 percent year over year in 2017. The Chainalysis team found a variety of explanations for this increase, each of which was related to regional economic changes.

When asked about the major drivers of adoption in developing markets, respondents stated that they were the need to protect funds, perform day-to-day transactions, and send and receive payments.

Chainalysis discovered that the massive amount of money invested by institutions in Western Europe, North America, and Eastern Asia had a significant influence on the price pump.

Although there were several contributing variables, the varied arguments presented in each unique area were convincing.

Obstacles to the adoption of cryptocurrencies

It is not mentioned in detail in the Chainalysis report, but a key impediment to increased crypto acceptance is an insurmountable disparity between crypto and national currencies throughout the world.

One company, on the other hand, is working to change that

Oscar Yeung, a co-founder of Convergence, claims that the company is committed to enhancing communication between fiat and crypto-assets.

“We’re committed to bringing real-world assets onto the blockchain,” said the team. People commonly invest in cryptocurrencies such as Bitcoin, Ethereum, and digital assets, but blockchain technology offers a plethora of possible uses in the best-case scenario, according to experts. We have access to real-world investing opportunities, such as private businesses, real estate, and private investment funds, among others.

“Convergence has come,” Yeung said in an exclusive interview with DailyCoin, “to offer the full product suite, from offering platform to exchange platform, to acquire access, to democratize access to all sorts of investment opportunities throughout the world.”

Intending to unify assets around parallel blockchains, convergence is a mechanism for storing replaceable assets in a single location.

The establishment of a new marketplace

Yeung argues that this is possible because of the unique business model employed by his organization.

From the beginning, we realized how the introduction of unlimited liquidity for all trading pairs through Uniswap might transform the trading landscape. That piqued my interest.

This advancement converted our prior trading pairs into ones that we were more familiar with, such as stablecoins like USDT, USDC, and Ethereum, which were designed to imitate real-world assets and were used in our previous trading pairings. “So we can create that new marketplace, which was never before available in the traditional sense,” Yeung said further.

Because there was no infrastructure in place to support a brand new marketplace that didn’t have a platform to function on, it was necessary to build the marketplace from the bottom up to support it. This is because there was no infrastructure in place until Convergence developers began to construct it.

Although the infrastructure of this industry is expanding, the possibilities it offers to go well beyond the basic concept. While exploring, we’re connecting one object to another and then breaking it down into smaller pieces.

With the advent of NFTs and on-chain games, the possibilities are just getting started. He believes that people’s potential and actualization will define the destiny of humanity.

IDO as Time-Varying Issuance

Known as the IDO, or Initial Decentralized Offering, Yeung believes that a new way of releasing tokens on a blockchain will be introduced shortly.

The concept is analogous to the establishment of a new currency inside the first offering of a Coin, except that in this case, the asset would be released as a DeFi property in the Ethereum network, rather than as a new currency.

The tokens that we offer have the potential to be redeemed in the future. The tokens are only being offered to rich private investors at this time, and no one else will be able to purchase them. Retail investors have a limited number of options when it comes to investing in a decentralized market.

The Solana, Avalanche, Moonbeam, and other tokens are being sought, and we’re attempting to establish whether or not we can gain access to them. According to Yeung, “it is really exciting to act as a bridge for locked Ethereum-based tokens, allowing them to be moved and unlocked on another blockchain.”

On the other hand:

  • Despite the fact that the DeFi sector is flourishing and has a great deal of potential, Gary Gensler, chairman of the SEC, plans to regulate it.
  • It is unclear whether or not the regulatory rhetoric will be put into action, and it is difficult to predict what the implications will be for Convergence and other comparable firms.

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