Interview with Anndy Lian: Views on 2022 Cryptocurrency Adoption – What Is Coming Next

Interview with Anndy Lian: Views on 2022 Cryptocurrency Adoption – What Is Coming Next

Anndy Lian is an all-rounded business strategist in Asia. He has provided advisory across a variety of industries for local, international, public listed companies and governments. He is an early blockchain adopter and experienced serial entrepreneur, book author, investor, board member and keynote speaker. Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. He is also the Chairman, Asia for BigONE Exchange.

Being an Asian, I would like to hear Anndy’s perspectives on how he sees cryptocurrency adoption for 2022.

 

Jenny Zheng: Now that the SEC appears to have dropped its resistance to (certain) Bitcoin ETFs, do you expect we’ll see increased institutional adoption of bitcoin/crypto as an investment vehicle and/or inflation hedge?

 

Anndy Lian: It’s certainly welcome news to exchange-traded fund managers with the launch of the first Bitcoin futures ETF this week, with the ProShares’ Bitcoin Strategy ETF, to first and foremost provide their clients with the option to diversify their portfolio with cryptocurrencies, a testament to the maturation of the market.

 

Plus, the news that Interactive Brokers announced they will empower Registered Investment Advisors across the United States to invest in bitcoin and cryptocurrencies means hundreds of billions of dollars can now enter the market more easily.

 

It’s true that big institutional investors have been looking for a regulated way to trade Bitcoin for a while, and that’s all the more so considering the real concerns about high inflation, and the debasement of the dollar due to the US Fed’s quantitative easing program.

 

Part of that crypto adoption process however is being able to convince the regulator, the SEC in the US being the prime example, that proposed funds will be able to cover the risks for investors. For example, Bitwise, which originally filed for regulatory approval for a bitcoin ETF in 2019 before withdrawing the application after an initial rejection, has been revising its filing for more than a year.

 

But it’s also clear that since the recent Chinese mining and crypto ban the US has become a little more receptive to crypto regulation. Certainly, regulators in other countries have approved ETFs, Canada’s Purpose Bitcoin ETF, which started trading in February, ballooned to more than $1bn in assets under management in less than two months.

 

Jenny Zheng: 2021 was notable for witnessing El Salvador’s adoption of bitcoin as legal tender. To what extent do you think 2022 will involve more nations following such an example, or will at least involve more nations/governments using crypto in various ways?

 

Anndy Lian: The rollout of Bitcoin in El Salvador certainly captured the headlines worldwide, It raised the profile of the country and has no doubt attracted the attention of other countries. By the same token, the speed at which it happened, without the opportunity to enlighten citizens across the country as to the pros and cons of using the cryptocurrency will also have given them food for thought. This caution is supported by the case of Panama, which while also passing a law to increase the use of bitcoin and Ethereum as a payment option did not decree that businesses had to accept cryptocurrency.

 

In 2022 however, the real crypto push from governments will be more likely to come in the form of central bank digital currencies, most notably in China. There the central bank is looking to use blockchain at the issuance layer for its digital yuan system, which is centralized. The Chinese version of the CBDC is not yet a distributed approach due to issues around performance and scalability; though the wider ecosystem does provide solutions in the form of sidechains and oracles to enable off-chain data to connect with blockchains this seems unlikely to be adopted any time soon.

 

However, the real impetus to action by the government whether in South America or Southeast Asia may come with the rollout of Facebook’s Novi wallet later this year, with the Diem cryptocurrency to follow shortly after. The reason being that most deserving of crypto aims, to service the ‘unbanked’ citizens who lack banking services. If the Facebook initiatives take off then this could spur governments to action, if not creating their own digital currency, in supporting the growth of private-sector solutions with improved regulations and support.

 

A good example of this approach is in Ukraine, which voted almost unanimously to legalize and regulate cryptocurrency just a day after El Salvador’s official bitcoin adoption. As reported in Yahoo Finance: “This is with hopes of developing a new industry that will attract transparent investments and boost the country’s reputation as a high-tech state.” No doubt this model for adoption will prove attractive to other governments in 2022.

 

Jenny Zheng: Lastly, the end of 2021 seems primed to witness a renewed bull market. However, do you think 2022 will witness an increase in people actually using bitcoin and cryptocurrency to make payments?

 

Anndy Lian: The trend towards greater use of crypto for payments has already started, with the recent news in the US that US-based cinema chain AMC will soon be accepting cryptocurrency payments. It comes just a few months after PayPal decided to allow US consumers to use crypto to make purchases and news that Mastercard would be supporting cryptocurrency payments across its network.

 

While in the retail sector, Walmart and Amazon’s crypto recruitment announcements have raised awareness that these retail behemoths may be planning to open their doors to cryptocurrencies. At Amazon, it appears the plans are well advanced, as a “full-on, well-discussed, integral part of the future mechanism of how Amazon will work,” according to a City AM report.

 

While there are certainly challenges in accepting Bitcoin for payments, especially when the price volatility is factored in, more and more merchants are looking to add crypto purchasing to their business. According to a survey last year by BitPay, “up to 40% of customers that pay with crypto are new to the merchant. Second, purchase amounts are twice that of credit card purchases. Third, crypto is less expensive than credit cards, and lastly, there are no fraud-related chargebacks”.

 

A clear use case for cryptocurrency also comes with international money transfers, for example, with low transfer fees and fast transfer speeds, and anyone can use it. “However, Bitcoin has become less attractive for remittances due to the increasing cost of Bitcoin transactions. Some competing cryptocurrencies, such as Ripple and Dash, are also targeting the remittance market with substantially lower fees,” suggested a recent report in Investopedia.

 

Jenny Zheng: Any final words?

 

Anndy Lian: Well, the year 2022 seems to be the best year for cryptocurrency adoption. If you looked at the crypto innovation curve that I have shared on Twitter. You have not missed anything. Crypto is still young.

 

by Jenny Zheng @jennyzheng.Early crypto advocate | Investor | PR Expert | Cofounder of Blockcast.cc

 

 

Original Source: https://hackernoon.com/interview-with-anndy-lian-views-on-2022-cryptocurrency-adoption-what-is-coming-next

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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Crypto Adoption in 2022: What to Expect?

Crypto Adoption in 2022: What to Expect?
  • More institutions are expected to adopt BTC as an investment vehicle and inflation hedge.
  • Future adoption of bitcoin as legal tender depends quite heavily on El Salvador.
  • Many governments may move more towards CBDCs in 2022.
  • The use of crypto for payments is expected to gain further momentum in 2022.

The crypto market is having a strong end to 2021, with various cryptoassets — including bitcoin (BTC) — hitting new all-time highs. The question is: will we continue seeing increasing adoption of cryptocurrencies among investors, institutions, and even governments next year?

For most analysts and observers, 2022 will indeed be yet another year of increasing adoption of cryptocurrency, both in terms of its potential as an investment vehicle and inflation hedge, and also in terms of its utility for payments.

Of course, 2022 will not all be plain sailing for cryptocurrency when it comes to adoption, with governmental rejection of crypto remaining just as (if not more) likely in some nations as adoption. That said, with the market showing renewed signs of bullishness as we write this, it’s likely that the overall trend will be towards more adoption rather than less.

2021: How accurate were predictions last year?

Back in 2020, industry players predicted that bitcoin would see increasing investment interest from institutions in particular. This is indeed what happened, with the current bull market being largely driven by institutional investors.

They predicted the growth in Ethereum (ETH) and decentralized finance (DeFi), with the latter (in terms of total value locked in) growing, per DefiLlama data, from around USD 21bn at the start of the year to USD 241bn, as of writing. Likewise, Ethereum accounts for 67% of this value, indicating just how pivotal it has become.

One other thing the commenters predicted in our previous year’s ‘adoption trends’ article was the growth in interoperability platforms and protocols, something which would allow chains to pool resources and value. This was particularly true with regards to the launch of the various cross-chain bridges we saw during this year, such as WormholeAvalanche Bridge, and Harmony.

Expect more institutions to come

Given that a new bull market driven by institutions appears to be emerging, it may come as no surprise to learn that analysts are predicting even more institutional adoption of BTC and other cryptocurrencies in 2022. In part, this should be driven by growing inflationary fears, as well as by the increasing normalization of crypto, something helped by new exchange-traded funds (ETFs).

“After the successful launch of [the ProShares] BITO ETF, regulators in the US and elsewhere will be less resistant to more bitcoin and other crypto ETFs. As a result, I expect we’ll see increased institutional adoption of bitcoin and crypto as an investment vehicle going forward,” said Fawad Razaqzada, an analyst at ThinkMarkets.

For OKEx’s director Lennix Lai, the approval of ETFs really does open the door to significantly increased institutional adoption of cryptocurrencies in 2022.

“We definitely believe with the launch of the Bitcoin ETF, it will attract higher adoption across the spectrum. Reason being more traditional retirement plans, pension funds, brokerage accounts will not accept crypto investments, which is where the bitcoin ETF comes into place,” he told Cryptonews.com.

Other analysts largely agree with this overview, even if they note that it’s dependent on various factors. Simon Peters, an analyst with eToro, notes that institutional investors have accounted for increasing inflows into bitcoin for several weeks now, and that this trend will likely continue as more institutions come to adopt BTC as an investment vehicle and inflation hedge.

Bitcoin saw inflows totaling USD 95m last week, representing the largest inflows of all digital assets, per CoinShares data. While the inflows slowed down last week, in this 8-week bull-run they now total USD 2.8bn with year-to-date inflows now at a record USD 6.4bn.

Peters adds that the likelihood of increased institutional involvement with bitcoin will rise if the US Securities and Exchange Commission (SEC) approves a spot ETF (i.e. one where the fund actually holds BTC).

“Investors (both institutional and retail) who have been interested in bitcoin and cryptoassets more broadly, but are reluctant to buy the underlying asset due to concerns around regulation/insurance, etc. may feel more comfortable getting exposure via an ETF instead,” he said.

For Ben Caselin, the head of research and strategy at AAX, the approval of a spot-based Bitcoin ETF will be vital if institutional adoption of cryptocurrency is to really take off next year.

“Before we see larger players come into the market, we would need to see more ETFs pass the bar, including physically-backed ETFs. As the pressure continues to build on the Federal Reserve and central banks in general, we can expect more capital to flow from traditional inflation hedges to bitcoin,” he told Cryptonews.com.

Others suggest that while SEC approval is welcome, institutions will continue embracing bitcoin regardless in 2022, simply by virtue of its market growing in size.

“As the ecosystem grows in scale, their involvement is inevitable.  At the margin, the SEC’s latest move brings that inevitability a little closer,” said Lou Kerner, the head cryptocurrency analyst at Quantum Economics.

More legal adoption?

With El Salvador officially adopting bitcoin as legal tender in September, there’s also a distinct possibility that other nations will follow its example in 2022. However, this depends on just how successful El Salvador’s embrace of BTC ends up being, with many nations in similar situations mostly observing from a distance for now. As reported, the CEO of the crypto exchange giant BitMEX Alexander Höptner estimates that “at least five countries” will “accept bitcoin as legal tender” before next year is out.

“I think most would-be countries are just sitting back and watching to see how El Salvador’s economy will evolve with the adoption of BTC as legal tender. If successful, I am sure more countries will follow suit — if not fully like El Salvador, then at least in other ways — especially those with weak economies and where currency crises are prevalent,” said Fawad Razaqzada.

Ben Caselin also suggests that future adoption of bitcoin as legal tender depends quite heavily on El Salvador. Nonetheless, if things do go well, there are other countries that may similarly stand to gain from adoption.

“In countries like Mexico, Peru, and Colombia, unbanked communities comprise more than 50% of the population. In South East Asia, in countries such as the Philippines and Indonesia, we find similar figures,” he said.

While he doesn’t necessarily expect more formal adoption to take place in 2022, he does suggest that “we will see countries signaling their interest” in moving closer to crypto next year.

On the other hand, some analysts say it’s almost inevitable that other nations will turn to bitcoin and other cryptocurrencies in one way or another, if not in 2022 then not long after.

“I think there is every possibility that other countries could follow in the footsteps of El Salvador and make bitcoin legal tender. Most of ‘the noise’ seems to be coming from Latin America at this moment in time,” said Simon Peters.

Lou Kerner is even more explicit about bitcoin and crypto’s chances in this respect, suggesting that it’s mostly a matter of ‘when, not if.’

“Just as the institutional adoption of crypto is inevitable,  so is the adoption of crypto by governments around the world. Adopting bitcoin as legal tender will be increasingly attractive for smaller governments without strong currencies,” he said.

Central banks and their tokens

That said, Anndy Lian, the Chairman of crypto exchange BigONE and the Chief Digital Advisor to the Mongolian Productivity Organization, says that developed nations will be more interested in central bank digital currencies (CBDCs) in 2022 than bitcoin or any other public cryptocurrency.

“The real crypto push from governments will be more likely to come in the form of central bank digital currencies, most notably in China. There the central bank is looking to use blockchain at the issuance layer for its digital yuan system, which is centralized,” he told Cryptonews.com.

He adds that a drive towards CBDCs may be catalyzed by Facebook (now – Meta), with its Novi app launching as a limited pilot in the US and Guatemala in October.

“If the Facebook initiatives take off then this could spur governments to action, if not creating their own digital currency, in supporting the growth of private sector solutions with improved regulations and support. A good example of this approach is in Ukraine, which voted almost unanimously to legalize and regulate cryptocurrency just a day after El Salvador’s official bitcoin adoption,” he added.

Lou Kerner also suggests that many governments may move more towards CBDCs in 2022, particularly those that feel threatened by bitcoin and other public and decentralized cryptocurrencies.

“Central bank digital currencies will be attractive for other governments looking to leverage technology to provide better financial infrastructure for internal or global use.   There will be some governments who resist out of fear of losing control, similar to countries who resisted the internet,” he said.

What about payments?

CBDCs bring us to the issue of payments, because while it seems likely that investors will increasingly adopt bitcoin and other cryptos as inflation hedges, it’s not clear whether the general public will increasingly use such currencies for making payments.

For Fawad Razaqzada, increasing payment use will follow on from increasing investment, with more holders and owners equaling more opportunities to use cryptocurrency for purchasing goods or services.

“This trend will likely gather momentum as more institutions get involved. So there is little doubt in my mind that 2022 could set a new record for crypto transactions for payments of actual goods and services,” he said.

Some analysts suggest that the use of cryptocurrency for payments is already picking up steam, and that it will therefore only gain further momentum in 2022.

“The usage of cryptocurrency to ‘make payments’ is already scaling rapidly. There’s more than USD 125 billion in stablecoins in circulation used to make payments,” Lou Kerner said.

He adds that cryptocurrency is already being used, for example, to incentivize community members to provide value to the community, from gaming (e.g. Axie Infinity) to talent networks (e.g. Braintrust).

“We expect this activity to continue to scale in 2022 and far beyond, similar to how e-commerce is continuing to scale 27 years after Amazon started selling books,” he said.

Likewise, Anndy Lian is another observer who argues that 2022 will only cement what is already happening in 2021.

“The trend towards greater use of crypto for payments has already started, with the recent news in the US that cinema chain AMC will soon be accepting cryptocurrency payments. It comes just a few months after PayPal decided to allow US consumers to use crypto to make purchases and news that Mastercard would be supporting cryptocurrency payments across its network,” he said.

Despite these significant inroads, Ben Caselin urges some degree of caution, arguing that while we see bitcoin’s use in El Salvador, for instance, we’re still very much in a growth phase where market volatility militates against everyday use of many cryptos.

He says, “For Bitcoin to take hold as an everyday payment system and currency, more adoption is needed […] It may take a few more years before we can see Bitcoin being used more for everyday payments globally.”

 

 

Original Source: https://cryptonews.com/exclusives/crypto-adoption-in-2022-what-to-expect.htm

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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The Value of Parachains to Drive Blockchain Adoption

The Value of Parachains to Drive Blockchain Adoption

The emergence of the blockchain is undoubtedly one of the most significant technological innovations of the modern era. The way we interact with technological systems and protocols has changed because of decentralization. Despite the innovative approach, there is currently no practical way for blockchains such as Ethereum and Bitcoin to communicate with one another.

 

Polkadot created an interoperable blockchain to connect multiple blockchains and allow them to communicate with one another. I wish to discuss Polkadot’s distinct key feature with our users in this article. We’ll go over the benefits of this feature and why it’s so valuable.

 

What is Polkadot’s parachain?

To truly comprehend Polkadot and its key feature, parachain, you must first understand the Ecosystem’s fundamentals. Parachains, also known as parallel chains, are autonomous individual layer-1 blockchains that function in the Polkadot and Kusama multichain networks. They are essentially parallel chains that use cross-network bridges to connect other blockchain networks like Bitcoin and Ethereum.

 

The relay chain is the main chain in the Polkadot ecosystem that ensures shared security and communication between the parachains. Polkadot can build bridges to other blockchains thanks to parachains and the relay chain. So, in essence, the protocols linked to Polkadot as parachains share the network’s scalability, security, and interoperability. Another feature of parachain that adds to its allure is its ability to support new use cases. Let’s look at the advantages of the parachain in greater detail.

 

The benefits of parachain

Governance: The parachain’s ability to adapt to any governance structure is one of its distinguishing features. They can use the on-chain governance model and access sophisticated on-chain governance systems to reduce the likelihood of parachain hard forks. In addition, using the on-chain governance model ensures accountability and transparency.

 

Interoperability: Every parachain can communicate with other parachains as well as blockchain networks. Smart contract calls, off-chain information, and token exchanges are now transferable to other blockchains, putting an end to the siloed nature of blockchain networks. This attribute allows for free and open trade between protocols, opening the door to innovations and developments. Every parachain can communicate with other parachains as well as blockchain networks.

 

Scalability: Blockchains can now scale at layer-1 rather than layer-2, thanks to the parachain structure. Parachain has enabled transactions on another layer to run concurrently with the network, allowing the blockchain network to scale.

 

Any project that wishes to become a parachain on the Polkadot network must first lease a slot by winning a parachain slot auction. Only the Ecosystem’s native token, DOT, can be used to place a bid for the parachain. The projects can choose to lease the slot for as little as six months and as much as two years.

 

The Polkadot slot auction aims to democratize the process and return power to the users. Through the Substrate crowdfunding module, projects that want to become parachains can accept DOT loans from DOT holders. The users who contribute DOT to the auction control the entire process. If the project cannot raise the necessary funds for the auction, the bid is forfeited, and the funds are returned to the contributors. We understand that for users to contribute to the slot auction, they must first know how it benefits them personally.

 

When a user contributes DOT to the parachain slot auction, the funds are locked for the lease period, but contributors will be rewarded in the form of their native tokens. Aside from that, investors are rewarded with governance roles and block production. In other words, you get rewarded for contributing DOT to a project to secure a parachain spot, and you also get your DOT back at the end of the lease period. This is a key difference between parachain auctions and traditional ICOs, as those who contribute DOT do so without needing to transfer control.

 

News that Polkadot founder Gavin Wood has launched a $777-million fund ahead of the network’s parachain lease auctions to promote development has underlined the strength of the project. Gavin Wood tweeted, “The treasury currently has 18,936,300 DOT (DOT, not USD – do the math) in it ready to spend on your ideas for building, improving, educating and indeed, anything else that the Polkadot governance believes valuable.” The news, “just weeks before Polkadot’s highly anticipated parachain auctions, which are scheduled to begin in early November, suggesting the funds could be intended to kickstart development targeting Polkadot’s forthcoming parachain ecosystem”, confirmed a recent Cointelegraph report.

 

BigONE Chairman Anndy Lian said:

 

“A big driver of the growth of the Polkadot ecosystem is the parachain auctions, driven by projects looking to secure one of the in-demand network slots. There is certainly plenty of scope for growth in the ecosystem as blockchain startups seize the capability to connect with other projects on Polkadot, as well as Bitcoin and Ethereum. This allows projects to focus on what they want to develop, harness the wider security benefits, and build faster using Polkadot’s Substrate. It’s this win-win that will drive the ecosystem.”

 

We want our users to understand that investing in the parachain slot auction is an excellent way to participate in the growth of the cryptocurrency sector while earning more money. You can take advantage of the parachain slot auction by participating in our innovative parachain slot auction promotion on BigONE Exchange in November. Don’t pass up this fantastic opportunity!

 

Original Source: https://hackernoon.com/the-value-of-parachains-to-drive-blockchain-adoption

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”. Currently, he is appointed as Chairman, Asia for BigONE Exchange and Chief Digital Advisor, Mongolia Productivity Organisation. Anndy is part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region and was previously the Advisory Board Member of Hyundai DAC Technology.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

You can read more about Anndy’s work at www.anndy.com

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