The cryptocurrency’s popularity is clearly on the wane. This was quite evident at the recently concluded Paris Fintech Forum which is one of the biggest gatherings of entrepreneurs, technology professionals, bankers, investors, and regulators in Europe. The discussions dominating this year’s agenda stood in stark contrast to that of the previous year when everybody seemed to be smitten by the concept of cryptocurrency, blockchain technology, and futuristic digital transactions. At its peak, crypto industry attracted talent from across business verticals and left many top executives complaining about how they had lost their valuable team members to the crypto industry. But now, things are seemingly heading towards a complete reversal.
Last year, all the major cryptocurrencies lost their sheen and are now trading down by around 80%, leading to skepticism among investors about the viability of the whole cryptocurrency concept. In fact, many experts tracking the financial technology industry have concluded that the cryptocurrency has to mature and the time is not ripe for its full-scale adoption. More specifically, the perception of the public about the safety credentials of cryptocurrency has taken a hit which ultimately led to the cold response the technology gets during the event in France this year. The experts recommend that the cryptocurrency industry – which lost more than $1.1 billion to fraudulent transactions and thefts – has to seriously raise the standards on the safety aspect to win back the trust of investors and the general public.
Safety is Paramount
Mr. Andrea Bonaceto who is working as a chief executive at Eterna Capital told The National that one of the distinguishing characteristics of cryptocurrency allows users to store their money without the need of any intermediary, but then users can’t be held responsible for the safety of their accounts. Bonaceto further added that the cryptocurrency exchanges have to tighten many regulatory agencies across the world desire the security and the same. The Bonaceto’s observations found favor with the remarks by Mr. David Schoenberger, chief innovation officer, Krypti, who told The National that crypto applications today lack a solid security mechanism to prevent the hackers from stealing the users’ data, wallet addresses, and security keys. According to Schoenberger, the security credentials of crypto applications need to be upgraded by several notches that will, in turn, help the crypto industry to win the trust of the stakeholders once again.
Banking in Limelight
No wonder this year’s Paris conference was focused more on the basics of the banking system rather than discussing the cryptocurrencies, blockchain technology, and related concepts of digital assets, reported Bloomberg. Along with the banking, the technologies related to credit scoring, automatic blending, application of artificial intelligence, supply chains were found more relevance among the dignitaries in the summit.
Another area which piqued the interest is Europe’s new payment which mandates the banks to share the customer data with the financial technology firms. The new guidelines stimulate the discussion and underline that much can be done on the sharing theme without involving the theme of cryptocurrency.