Netherlands-based digital asset liquidity provider Crypto2Cash believes that, although the world is facing very uncertain times, wider acceptance and adoption of cryptocurrencies as a monetary unit, or method of payment, is an inevitable development.
Nevertheless, many players in this space do not insist upon rigorous standards and may, in the future, be left playing catch up when regulation inevitably comes into force, according to PJ Datema, CEO and founder of the firm.
“We built our solution to be fully AML, KYC and KYT compliant in anticipation of future regulation of the industry. This is beneficial not only for ourselves, but our customers alike”, he said.
The Dutch service provider supports a total of 29 fiat currencies, including the US dollar, Canadian dollar, Swiss franc, Euro, Thai baht, and Japanese Yen. Additionally, the platform supports a few other currencies, including Chinese yuan, Indian rupee, and UAE dirham on request.
“An increasing number of people will want to have exposure to leading cryptocurrencies and will want to know that they can exit again when they want to,” Datema noted.
How many cryptocurrencies are needed?
The firm says that the current upswing in cryptocurrency prices might lead people to think that more will come onto the market, while realistically, this space is already well catered for.
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According to CoinMarketCap, more than 2200 cryptocurrencies already exist today, which is likely to mean that the vast majority will fall by the wayside.
“There is no logical reason to have 2200+ units of payment that effectively perform the same function as each other. Ultimately the market will decide which cryptocurrencies are most relevant, accepted, or widely traded and going forward this may be as few as 10 or 20, but we will have to wait and see. The jury is still out!” said Datema.
Crypto exchanges: Who will survive?
Technology, as it exists today, really has no geographical boundaries so the need for ‘local exchanges’ is largely redundant, according to Datema.
“The world has changed dramatically in the last 25+ years in terms of the global access that is available to everyone, from sophisticated market users, such as hedge funds, to the man on the street (and everyone in-between) so we feel there will be a finite amount of exchanges that are likely to be required, and likely to survive, to cater for the global demand for cryptocurrencies,” he added.
Much in the same way that we have seen considerable consolidation in the banking industry in the last two decades, for example, the likelihood is that either through competition or acquisition, we are likely to end up with a number of the strongest players ruling the roost, the firm believes.
“Whether this is dictated by region, continent or language we will have to wait and see,” Datema said.