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Coinbase annual review: Crypto remains the future of currency.

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The future is already here, it's just not evenly distributed yet.

The future of money is here – and it's crypto

Source: Brian Armstrong, Coinbase

Translated by: AI assistant

Editor's note:

Whether it's the sustained rise in Bitcoin prices, the optimistic expectations of the market for the approval of Bitcoin spot ETF applications, or the fact that we will see another halving of Bitcoin in 2024, all indicate that next year will be an important year.

Brian Armstrong, co-founder and CEO of Coinbase, one of the most influential members in the cryptocurrency industry, expresses his optimistic attitude towards cryptocurrency and Coinbase's industry mission and development in this article.

Summary:

- Cryptocurrencies will not only continue to exist, but also represent the future of money.

- This industry has opened a new chapter, and compliant growth is the trend of the future.

- This year, the value of cryptocurrencies has risen by 90%, and trading volume in the fourth quarter has increased by 60%. More than 52 million Americans and 5% of the world's population own cryptocurrencies, and most G20 countries support their use.

- We are beginning to see cryptocurrencies play a role in stablecoins, DeFi, and Web3, and as cryptocurrencies drive updates to the financial system, on-chain transactions are becoming more like the new internet.

Cryptocurrencies will not only continue to exist, but also represent the future of currency. The industry has bid farewell to illegal activities that once hindered its development, and is now growing in compliance. After experiencing a massive market correction, the value of cryptocurrencies has risen by 90% this year, and trading volume in the fourth quarter has increased by 60%. Globally, 425 million people own cryptocurrencies, and 83% of G20 countries and major financial centers have already or are in the process of establishing regulations to ensure certainty in the industry. With this scale and momentum, innovation will continue to flourish. SEC approval of Bitcoin exchange-traded funds (ETFs) may stimulate the growth of cryptocurrencies as an asset class. However, as the use of cryptocurrencies increases, their utility is also increasing - from being an asset class to driving the necessary updates to the century-old financial system.

Every day, more consumers are growing up in the internet environment, and they expect to be able to transfer funds with the speed, scope, and autonomy that traditional financial institutions, and even online payment systems based on these institutions, cannot provide. They also hope to transfer funds at low cost, without being restricted by powerful institutions that charge high fees and interest rates. Today, in the United States, half or more of the major consumers and voters are actively seeking alternatives to the current system, including 52% of adults aged 18-40, 6 out of 10 African Americans, and nearly half (47%) of Hispanic Americans. Cryptocurrencies are helping to create a more open and globalized system.

·Worldwide, over 100,000 merchants and payment channels accept cryptocurrency payments, including PayPal and Visa. One of the reasons for this is low fees, faster transaction speeds, and reaching new customers.

·In 2022, the transfer amount of global on-chain stablecoins reached nearly $9 trillion, surpassing the total of Mastercard, American Express, and Discover. Stablecoins help currencies like the US dollar exist in digital form. They are faster, more affordable, and easier to use than fiat currencies, but equally stable and secure. For ordinary users, they offer the benefits of cash without its drawbacks. In countries with unstable governments and currencies, they provide a secure way for citizens to conduct cross-border transactions.

Countries with lower economic freedom, such as Argentina, Brazil, and Nigeria, have a higher proportion of cryptocurrency payments and adoption in their wealth (and are among the most populous countries in the world).

·Workers living abroad use cryptocurrency to send remittances. About one-ninth of the world's population relies on these remittances. Cryptocurrency transfers are on average 96% cheaper than other transfers and only take 10 minutes instead of up to 10 days.

·Global financial centers such as London, Switzerland, Hong Kong, and Singapore are transforming into cryptocurrency centers in order to compete for job opportunities and talent brought by a more open and globalized system.

Cryptocurrencies provide people with economic freedom, ensuring that they can control their funds freely and participate fairly in the economy without being restricted by powerful traditional institutions - enabling people to build, create, and own their work. Coinbase is committed to increasing economic freedom for over 1 billion people. As the application of cryptocurrencies continues to grow, we focus on building the most trusted and compliant products and services, supporting other developers, and establishing fair rules to realize the benefits of cryptocurrencies in the United States and globally:

·Coinbase Wallet is changing global currency transfers, allowing anyone to send funds to anywhere in the world instantly and without fees. No fees, no waiting days to access funds.

·The decentralized and open Layer 2 (Base) incubated by Coinbase is paving a new path towards our goal, which is to complete payments in less than one second with a cost of less than one cent, enabling anyone, anywhere to build amazing on-chain applications.

Our new international exchange offers spot and perpetual futures trading, and is striving to become the cornerstone of the global cryptocurrency ecosystem. By remaining true to our fundamental principles of trust, security, and ease of use, we are redefining industry standards.

Our "deeper and wider" international expansion strategy is accelerating the adoption of cryptocurrencies worldwide. We have recently obtained licenses or expanded in key markets such as Canada, Spain, and Bermuda, and have identified Ireland as the location of our EU MiCA entity.

Coinbase is building a clear and collaborative track with trustworthy products and facilities to support innovation today and in the future. From ongoing updates to the financial system to the next chapter of cryptocurrency - when one billion people globally use decentralized services, cloud services, and business services driven by cryptocurrency - it will ultimately prove that blockchain (onchain) is the new internet.

Coinbase has chosen to become a public company in the United States because we are committed to this market, compliance, and transparency. For the United States, our mission is particularly important, especially in the face of threats to the American Dream and democratic values represented by the nation. Only with economic freedom can both coexist. We believe that the United States will eventually view cryptocurrency correctly. At the same time, we will continue to work with other countries that are moving forward and embracing cryptocurrency - promoting a more global and open financial system.

The cryptocurrency and Coinbase have just begun.