The probability of legalization of cryptocurrencies has decreased, and leaders of blockchain projects join philanthropists
At the peak of development of blockchain projects in 2017, humanity assured itself that the legalization of cryptocurrencies is not far off. The rise in the price of bitcoin forced even large banks to talk about it. However, in 2018, the interest in digital money decreased significantly, so financial institutions doubted the future prospects of the industry.
In particular, a number of institutions made a pessimistic prediction about the legal status of coins. According to media reports, Goldman Sachs, Morgan Stanley, Citigroup and Barclays analysts are negatively adjusted. The head of SolidX Daniel Gallancy shares the same opinion. The specialist is sure: the world overestimated the possibilities of cryptocurrencies, and integration of assets of this kind into the traditional banking system was initially unlikely. According to him, market expectations about the start of work of leading players in the financial sphere are simply unrealistic.
However, banks did invest in projects related to bitcoin. For example, Goldman Sachs released a settlement forward. The idea failed, it was in demand only among 20 clients of the bank. However, in October 2018, the company made another attempt and invested money in the Castodian BitGo.
Morgan Stanley also had problems. The executives have invested in the launch of total income swaps based on cryptocurrency futures. However, the development has not yet been launched, contracts are not being traded. Citigroup suspended its activities in this area.
Earlier, Barclays rejected its project. The British organization temporarily stopped creating its own trading platform for digital assets. In addition, two staff members recruited specifically for this purpose have already left the staff. To date, the crypto industry is not included in the list of priority plans of the financial giant.
Experts see several reasons that prompted large banks to postpone ideas related to bitcoin including lack of legal framework and regulation of the sphere, as well as outflow of institutional investors.
However, not all institutions are pessimistic. The New York Stock Exchange, Fidelity, TD Ameritrade continue to develop on the basis of cryptocurrencies. If interest regains, companies will be able to offer investors a huge number of products.
While the world is arguing about legalization of cryptocurrencies, blockchain projects participate in philanthropic missions
The head of Coinbase crypto exchange Brian Armstrong said about joining The Giving Pledge mission. The campaign was founded in 2010 and was led by Warren Buffett and Bill Gates. It is joined by oligarchs who want to give at least half of their own money for charitable needs. Famous participants of the program include David Rockefeller, Michael Bloomberg, Elon Musk, George Lucas, etc.
Armstrong became the first representative of the blockchain industry to take such a step. He told about the admiration of people who put the prosperity of the planet and the well-being of inhabitants above personal wealth. Earlier, the crypto expert launched his organization called GiveCrypto. The main objective is to make money transfers accessible to people living below the poverty line.