Ethereum Plays Important Role in Open Finance

By Kapil Gauhar

Vital significance is placed on trust as well as centralized models of administration in the traditional world of finance. At the point when the possibility of digital currencies like Bitcoin was conceived, it tried to present an alternative form of finance, one that was trustless and subordinate exclusively on code. However, even the world of cryptocurrency has had many pitfalls in the years since. In spite of every one of these pitfalls, it continues to represent a decentralized as well as trustless system, when contrasted with the kinds of money offered by country states.

Ryan Sean Adams, Founder of Mythos Capital, highlighted on the latest episode of the Epicenter podcast how virtual currencies are a digital alternative to centrally-banked fiat currencies such as the US Dollar, while additionally expanding on the role of Ethereum in such an environment.

He stated –

“I do think that as the world develops a digital alternative because we’ve had physical alternatives to Fiat money before in the form of gold and commodity assets like that. But crypto is the first time we’ve had a digital alternative to a centrally backed digital US dollars.”

As per Adams, this new type of currency will unavoidably gain traction as an ever increasing number of users migrate to it. Taking note of that the current fiat-run system can be a ‘back-up’.

He stated –

“Funds and capital will flow from this old traditional world to this new traditional world. It could take decades, it might take generations, but you know, future generations will have an alternative to the traditional system and hopefully, that restores a bit more balance.”

Throughout the years, with BTC positioned as the digital asset that will make fiat currencies obsolete, Bitcoin’s scalability issue rose to turn into a barrier to the argument. However, Ethereum as an ecosystem and Ether (ETH) as its currency holds promise, as indicated by Adams.

“To have a bankless financial system to have a bankless store of value at the base layer, I think that Ether as a store of value asset in Ethereum is probably the most important money lego in the entire stack”

In an ongoing blog post by Adams, he had expounded on the developing role Ethereum is playing in the stablecoin ecosystem. He had likewise featured the growth of stablecoins versus Bitcoin v. Ethereum and how the last settles over 75% of the whole crypto stablecoin market.

Commenting on the developing economic bandwidth for digital assets as the base layer and how it can onboard more individuals, Adams argued –

“Within the borders of Ethereum – the digital nation-state and the digital economy, I would argue Ether is used as money across all of those dimensions.”