“Consensus 2023” Points of Attention ─ TradFi, Development Projects, Web3, Regulations | coindesk JAPAN

The crypto-asset (virtual currency) market is falling, but it’s not over. The industry that was hit hard last year is “Consensus by CoinDesk 2023,” which will make a big presence in early 2023.

Big names in the crypto industry, government and Web3 will gather in Austin, Texas April 26-28 ET to see where the industry is, what a devastating year it has been, and what the future holds. discuss. From that point of view, the situation is improving. If the first four months of this year show the direction of the industry, the rebuilding has begun.

In the United States, the regulatory uncertainty has changed to the belief that cryptocurrencies will be regulated. The EU passed a landmark MiCA regulation last week, providing a comprehensive regulatory model. Even China, which officially banned cryptocurrencies in 2019, seems to favor Web3.

But it still needs development, policy making, education and investment. While recent market trends offer some optimism, the impact of fraud and bankruptcies has completely eroded consumer confidence in the industry. Restoring trust is a thorny road, which is why Consensus is the perfect opportunity for developers, regulators, decision-makers, and many others to share their views.

This week’s Consensus by CoinDesk in Austin will have the following themes:

TradFi (traditional finance) perspective

One of the biggest topics is how the traditional financial industry should view its relationship with crypto assets.

In 2022, bank failures and acquisitions occurred one after another, similar to the economic situation when Bitcoin (BTC) was born. US regulators set out to bail out three banks, raising concerns of “moral hazard” in the financial industry.

But the bankruptcy, combined with persistent inflation, didn’t hurt Bitcoin’s price, which did rise in the wake of the event. As a result, the narrative that bitcoin could one day become a real hedge asset has been rekindled. As in 2021, few companies are buying bitcoin to decentralize their balance sheets, but institutional investors are adopting and developing blockchain technology. French financial giant Societe Generale recently launched a euro-denominated stablecoin, while global asset manager BlackRock backed a major Bitcoin miner.

The Ethereum Blockchain’s Major Upgrade “Shanghai” Now Allows Withdrawal of Staked Ethereum (ETH), ETH Could Be Comparable to the Financial Industry’s “Risk-Free Rate” It seems that the recognition is spreading. It is worth noting that the price rose after Shanghai, overturning analysts’ predictions of a massive sell-off and a drop.

Clearly, there are opportunities for TradFi (traditional finance) institutional investors to enter and generate returns in crypto assets, both in the short and long term. Dawn Harflinger, CEO of Liliʻuokalani Trust, will discuss the long-term position of the $1.2 billion fund in crypto assets.

CoinDesk senior reporter Ian Allison sat down with Jose Fernandez da Ponte, head of the crypto and digital currency business at PayPal. PayPal is arguably the most active fintech company in cryptocurrencies.

Movement of developers

Venture capital (VC) investment in crypto assets stood at just $900 million in the first three months of 2023, compared to billions of dollars last year. But for many crypto-focused funds, there are a number of projects that should be invested in to supplement the capital raised or acquired from the previous bull market.

After the FTX collapse, VCs are reaffirming the importance of decentralization. In particular, many funds invest in “crypto asset infrastructure.” Specifically, it is a wide range of categories, from layer 1 blockchain to layer 2 “Base” launched by crypto asset exchange Coinbase.

Similarly, well-funded projects are beginning to pour millions of dollars into open source development of the ecosystem. For example, Solana, which was hit hard by the FTX collapse, has shown “tenacity” as a cryptocurrency project with a dedicated developer community and the necessary funding.

There are many things to develop. Prominent bitcoiner Udi Wertheimer and Stacks blockchain developer Muneeb Ali said that since the launch of Bitcoin Ordinals (the so-called Bitcoin NFTs), Bitcoin as a whole Discuss the spread of active development. Also, Sunny Aggarwal, founder of Cosmos’ largest decentralized exchange (DEX), will discuss the need for interconnection to make all blockchains seamless and Cosmos’ vision.

Expanding Web3

“NFT” stands for “Non-Fungible Token”, an acronym for an obscure term. That’s why over the past year, Reddit, Starbucks and others have been experimenting with what they call “digital collectibles” rather than NFTs.

Those who thought of this as a critique of crypto assets missed an important point. With the cryptocurrency market in a slump, labeling the project “Web3” or “NFT” didn’t help much, but these brands had enough faith in the concept to begin with.

Crypto assets will continue to grow under the surface in this way. For example, Solana is preparing to launch the “Solana Phone,” which will target avid cryptocurrency users rather than the mass market. Futurist Cathy Hackl will present a “post-smartphone” future where AR (augmented reality) and AI (artificial intelligence) are everywhere.

The market for crypto-focused smartphones and wearables may still be small, but they are all part of the broader “ownership economy” and have started to make it happen.

There are many different views on how far crypto and the metaverse will permeate our daily lives, and what exactly it will look like, but one thing is certain: it is one of the fastest growing entertainment sectors. eSports, which is one, will aggressively adopt the new ownership model. GameSquare’s Jason Lake talks about esports and the potential of crypto.

Chainlink co-founder Sergey Nazarov will also discuss the role of blockchain oracles and data providers as digitalization advances in all areas.

Related article: What is an “oracle” that sends external data to the blockchain? ──Crypto asset keywords learned from GW

rules, regulations, enforcement

The industry as a whole is feeling pressure from regulators, but regulators are also making moves. Last week, the European Union (EU) took a major step forward by becoming the first major economy to vote on a comprehensive regulatory framework for crypto assets. In the United States, it is clear that the government intends to regulate the cryptocurrency industry, but the specific form has not yet been decided.

Policy is a central theme in Consensus. Circle co-founder and CEO Jeremy Allaire discusses the future of stablecoins with CoinDesk chief content officer Michael Casey talk.

On the 28th, Dr. Marwan Al Zarouni, a strategic adviser to Digital Dubai and the United Arab Emirates government, and perhaps the most active crypto lobbyist in Washington, CEO of the Blockchain Association. , to discuss crypto-asset policies with Kristin Smith.

consensus

2023 may be the year when the name “Consensus” is more apt than ever. In the world of crypto assets, it is impossible to have a one-size-fits-all consensus, but without some direction, if not polar opposites, we cannot move forward.

Consensus by CoinDesk 2023, which brings together some of the most influential big names in crypto and finance, is perhaps the biggest opportunity for an industry in desperate need of direction. becomes.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: CoinDesk
｜Original: What to Expect at Consensus 2023