Who Let The Cryptos Out
MWC Stage B, Hall 6 Thursday 2 March 11:15
Senior Manager for Corporate Strategy
More and more retailers and vendors are adopting the digital currency concept. Traditional financial agencies, such as MasterCard and PayPal, also encourage the innovation. Will cryptocurrency fully integrate with the traditional economy?
Digital currencies are still in the process of tapping into the mainstream. It will take some time before we see digital currencies being fully integrated into traditional economies across the globe. As target groups, especially younger generations, adapt to crypto and the idea of a decentralised internet, businesses have to rethink and adjust their traditional structures as well. There are some questions that need to be answered, but this nascent technology is constantly developing. One of the main challenges for mainstream adoption are usability, convenience, trust and regulation to some degree.
Cryptocurrency is lauded for its encrypted, decentralised and disruptive nature, alongside its capabilities to operate in an entirely different space from traditional monetary transactions. Can you identify the key benefits of this from a commercial perspective? Also, what about the barriers?
In general, cryptocurrencies following an open approach of participation, making almost instant transactions globally are available 24 hours, seven days a week. Users can not only truly own and use cryptocurrencies but can also actively engage in securing the underlying blockchain networks, for example via staking. Commercially, cryptocurrencies enable a lot of flexibility in designing new business and participation models, but barriers to overcome are complexity and trust issues.
Deutsche Telekom backs the Ethereum blockchain with a solid digital infrastructure. How does this secure and simplify the transactions and can you discuss T-Systems' partnership with StakeWise?
Deutsche Telekom’s MMS team is running an institutional grade staking service, providing infrastructure for public blockchain networks. The validator nodes validate transactions on decentralised Blockchain networks. Deutsche Telekom runs nodes for selected networks and is part of the decentralised system. StakeWise enables a convenient way to stake Ether tokens with institutional grade infrastructure providers such as Deutsche Telekom.
The recent collapse of currency exchange FTX shows that the crypto industry requires a reality check: How will the market evolve over the next five years?
Markets will face more regulation in the future. Transparency and regular reporting for centralised and decentralised solutions will be key topics to be worked on. Additionally, we will see more education offerings for Web 3.0 and crypto services. Over the next five years, there will be a wider industry shift towards Web 3.0, focusing more on solutions that solve actual customer needs, not only in finance but also telecommunication, social media sustainability and many more. In this case, tokens will act as utilities instead of pure investment speculation vehicles.