Coinbase Annual Summary, Crypto is Still the Future of Currency

Original Title: "The future of money is here -- and it’s crypto"
Original Source: Brian Armstrong, Coinbase
Original Translation: 0x26, Blockbeats

Editor’s Note:
Whether it’s the continuous rise in Bitcoin prices, the optimistic expectations for the approval of Bitcoin spot ETF applications, or the upcoming Bitcoin halving in 2024, all indicate that next year will be significant.

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

Summary:

• Cryptocurrency will not only continue to exist but is the future of money.
• The industry has turned a new page, and compliant growth is the trend for the future.
• This year, the value of cryptocurrency has increased by 90%, and trading volume in the fourth quarter has risen by 60%. Over 52 million Americans and 5% of the global population own cryptocurrency, with most G20 countries supporting its use.
• We are beginning to see cryptocurrency play a role in areas such as stablecoins, DeFi, and Web3, as cryptocurrency drives updates to the financial system, making on-chain increasingly resemble the new internet. Cryptocurrency will not only continue to exist but is the future of money. The industry has bid farewell to the illegal activities that once hindered its development, and compliant growth is underway. After a massive market correction, the value of cryptocurrency has risen by 90% this year, and trading volume in the fourth quarter has increased by 60%. Globally, 425 million people own cryptocurrency, and 83% of G20 countries and major financial centers have already established or are in the process of establishing rules to ensure certainty in the industry. With this scale and momentum, innovation will continue to thrive. The SEC's approval of Bitcoin spot ETFs could stimulate new growth for cryptocurrency as an asset class. However, as the use of cryptocurrency increases, its practicality is also growing—from an asset class to driving the necessary updates to the century-old financial system.

Every day, more consumers are growing up in an internet environment, expecting to transfer funds with speed, reach, and autonomy that traditional financial institutions, and even online payment systems based on these institutions, cannot provide. They also wish to transfer funds at low costs, without powerful institutions restricting their access and charging high fees and interest rates. Today in the U.S., half or more of 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. Cryptocurrency is helping to create a more open and globalized system.

• Globally, over 100,000 merchants and payment channels accept cryptocurrency payments, including PayPal and Visa. One reason for this is: lower fees, higher speeds, and reaching new customers.

• In 2022, the global on-chain stablecoin transfer volume approached $9 trillion, surpassing the total of Mastercard, American Express, and Discover combined. Stablecoins help currencies like the dollar exist in digital form. They are faster, cheaper, and easier to use than fiat currencies, yet equally stable and secure. For ordinary users, they provide the benefits of cash without its drawbacks. In countries with government and currency instability, they offer citizens a secure way to conduct cross-border transactions.

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

• Workers living abroad use cryptocurrency to send remittances. About one in nine people globally rely on these remittances. Cryptocurrency transfers are, on average, 96% cheaper than other transfers and take only 10 minutes instead of up to 10 days.

• Global financial centers such as London, Switzerland, Hong Kong, and Singapore are transforming into cryptocurrency hubs to compete for jobs and talent brought by a more open and globalized system.

Cryptocurrency provides people with economic freedom, ensuring they can freely control their funds and participate fairly in the economy, unrestrained by powerful traditional institutions—enabling them to build, create, and own their work. Coinbase is committed to increasing economic freedom for over 1 billion people. As the application of cryptocurrency continues to grow, we focus on building the most trusted and compliant products and services, supporting other developers, and establishing fair rules to ensure the benefits of cryptocurrency are realized in the U.S. and globally:

• The Coinbase wallet is changing global money transfers, allowing anyone to send funds anywhere in the world instantly and for free. No fees, no waiting days to access funds.

• The decentralized, open Layer 2 (Base) incubated by Coinbase is paving new tracks toward our goal of completing payments in less than a second, with fees under a 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 crypto ecosystem by consistently adhering to our fundamental principles of trust, security, and ease of use, redefining industry standards.

• Our "deeper, broader" international expansion strategy is accelerating cryptocurrency adoption globally. We have recently obtained licenses or expanded in key markets such as Canada, Spain, and Bermuda, and have identified Ireland as our EU MiCA entity location.

Coinbase is building a track with clear rules, broad cooperation, and trusted products and facilities to support today's and future innovations. From the ongoing updates to the financial system to the next chapter of cryptocurrency—when a billion people globally use cryptocurrency-driven decentralized services, cloud services, and business services, it can ultimately prove that on-chain is indeed the new internet.

Coinbase chose to become a publicly traded company in the U.S. because we are committed to this market, dedicated to compliance and transparency. Our mission is particularly important for the U.S., especially in the face of threats to the democratic values that represent the American dream and the nation. Both can only coexist in the presence of economic freedom. We believe that the U.S. will ultimately come to view cryptocurrency correctly. Meanwhile, we will continue to collaborate with other countries that are moving forward and embracing cryptocurrency—promoting a more globalized and open financial system.

Cryptocurrency and Coinbase are just getting started.