Blockchain technology and cryptocurrencies are here to stay, but we’re yet to develop the systems we need to make them work on a global scale.
Cryptocurrencies have caused a bit of a stir recently but are rapidly recovering from the well-publicised slump early this year. Despite scepticism and some pointed criticisms from central banks and traditional investors, cryptos are attracting serious interest from global financial institutions.
Cryptos are set to continue to be a major disrupting force in the global financial system, so Tech Trends met up with Francisco Portillejo Hoyos for an insider perspective on what to expect next. Hoyos is the CEO of Cryptalgo, a Swiss algotrading and crypto brokerage company, and he helps us make sense of the confusing cryptocurrency landscape and what will be filling our wallets, digital or otherwise, in the future.
While the dollar value of Bitcoin and other coins have depreciated from the January peak, prices have basically returned to their end of 2017 levels. Governments and Regulators are still learning how to best protect investors’ interests and introduce the right trading tools that will breed confidence among traders. Many believe that the leading financial jurisdictions, including the US, UK, South Korea, Japan, and China, will introduce regulatory schemes and frameworks that will remove the uncertainty and will fuel the crypto markets’ growth. He explained.
A major announcement of a new partnership between leading US innovators in foreign exchange and futures trading solutions, Elysium Technology Group and Cryptalgo promises a solution to the problems of a fractured crypto market and offers a one-stop shop and safe, easy access point into this emerging new world of finance.
Cryptalgo provides financial institutions with a swift entry into cryptocurrencies without the need to invest capital in developing their own secure and efficient platforms. From real-time quotes and aggregated liquidity, to best trade execution and global arbitrage algotrading, we are introducing a best in class, highly secure global cryptocurrency trading platform. All built to the exacting requirements and standards of financial institutions.
Chairman of Elysium Technology Group, Andrew Siciliano also believes now is the time to begin offering crypto investment solutions to their established client base;
“New trading platforms like this promote confidence in these disruptive new markets, he says. “Cryptalgo has the knowhow, experience, and execution platform complementing the Elysium offering. The partnership will deliver a comprehensive, high-end cryptocurrency trading solution for our clients.”
“The combination of this ecosystem and a regulated environment will turn cryptocurrencies into a mainstream and fast-growing asset class,” added Hoyos. “We are witnessing significant investments made by very credible funds and companies into blockchain and crypto companies, and we’re delighted that Elysium, the market leader in FX post-trading platforms, has chosen to partner with Cryptalgo as it looks to extend its offering into cryptocurrency trading.”
Tech Trends predicts we will start seeing more of a trickle-down effect where cryptocurrencies become a more viable option for ordinary people. OK, anyone can technically already buy cryptos such as Bitcoin and Ethereum and spend them at thousands of outlets on the web and even some physical stores, but I don’t think it is rude to say that, right now, only super-geeks and tech enthusiasts have really bought into the system properly. That’s changing fast though, and soon you too might be filling up the tank on Ethereum and grocery shopping with Bitcoin!
Current estimations predict that the value of the entire cryptocurrency market will reach $1 trillion in 2018, with crypto the fastest growing asset class to date. However, it is a still a bit Wild West out there as Hoyos explained;
Despite the crypto ecosystem evolving at a rapid pace, it is still in its infancy. This nascent market has deep inefficiencies. The market participants are spread across the globe, fragmented, disconnected and lack standardization. If one or more coins emerge both as a reliable store of value (immune to hacking) and an efficient means of exchange (capable of handling very large transaction volumes in a very short time), then the banking sector as we know it will be fundamentally transformed.
In response to that problem, Cryptalgo has developed the ‘Galaxy’, a highly secure global backbone that interconnects with multiple exchanges. It’s an institutional-grade global infrastructure that interconnects with crypto exchanges via a network of global servers that are placed in proximity to the exchanges around the world.
Andrew expanded; Moneymaking opportunities come and go very quickly. We believe this will be the same in cryptocurrency trading. Institutions need trading solutions that they are familiar with; that feature “Best prices” and “Best Execution”. This cannot be achieved without speedy access to the entire global crypto market. Institutions not only need to get the best pricing on very large orders, but they also need methods for preventing market shifts when placing such orders. This means they cannot rely on a quote from a single crypto exchange or an execution of a trade transaction. They require strong compliance standards, stringent cyber-security measures and other high-end tools — all of which Cryptalgo is developing.
Stabilising and expanding the high-end of the crypto trading should hopefully provide increased stability for the currencies and global markets, nurturing and growing their potential while making them more secure for those using them day-to-day. Hoyos sees huge potential in decentralised crypto and a future where national currencies might disappear altogether.
It is possible that in twenty years’ time, bank accounts will have disappeared because we will be able to store our money in private wallets on the blockchain. Blockchain technology will have a world-changing impact, in the same way the Internet did thirty years ago. We believe that cryptocurrencies will be fully regulated and mainstream. They will be offered by all the financial institutions using their institutional-grade trading and investment tools, featuring tens of thousands of coins and with an aggregated market cap of trillions of dollars.