FTX Chief Sam Bankman-Fried Highlights Three Biggest Challenges for Crypto Industry

Founder and CEO of global cryptocurrency exchange FTX Sam Bankman-Fried is listing three things that are hindering the widespread adoption and growth of cryptocurrencies.

Bankman-Fried claims in a tweet that the crypto industry requires regulatory clarity to thrive in developed economies.

“Well, let’s start with regulation.

The biggest thing here is to work collaboratively on ways to address current regulatory gaps while allowing liquidity to move onshore — to the US, and to Europe, and other jurisdictions.”

In the case of stablecoins, the FTX CEO states that the regulatory framework should aim at enhancing transparency and accessibility.

“Stablecoins are maybe the most straightforward: create a reporting/transparency/auditing based framework to ensure they are backed as they say they are.

This would solve 80% of the problems while allowing stablecoins to thrive onshore.

It’s important, while doing so, to make sure that an open network can grow; if the network is restricted to existing banks, it defeats most of the purpose.”

Bankman-Fried also recognizes that regulations governing the crypto markets and the issuance of tokens are necessary.

“Second, there should be standard markets oversight, in a unified regime that creates similar standards for spot, futures, etc.

And third, a disclosure, registration, and anti-fraud based regime for token issuances.”

To ensure the broader adoption of crypto, the FTX CEO says the industry needs to focus on building products that appeal to users and make the products readily available and accessible.

“This means slow, hard work; building out the network until it approaches transition points where enough merchants and consumers use crypto that payments and remittances start flowing.

And, similarly for blockchain-based social media and information flow.

Tapping into the existing userbase of video games could be huge–billions of users and hundreds of billions of dollars each year.

But this only makes sense if it makes the virtual worlds more engaging, not less.

The real goal, here, is to take a great game, and integrate NFTs [non-fungible tokens] in a way that makes the game better.”

According to Bankman-Fried, blockchains will need to keep increasing the number of transactions they can process per second to reach industrial-scale proportions.

“And, meanwhile, networks need to keep scaling.

I always laugh when a blockchain says they’re already fast. None are!

Fast means millions of TPS [transactions per second]. No one is there yet.

So what matters the most is having a concrete roadmap to scale to millions of TPS, and executing well on it.”

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Featured Image: Shutterstock/gg_tsukahara/Vladimir Sazonov