When crypto markets are in upheaval, analysts turn to market experts to give perspective on current conditions. Charles Cascarilla turned from equity market investing to focus on crypto soon after the first bitcoin was mined. Since that time, he’s witnessed seemingly countless crypto ups and downs. He highlighted some of his learnings and insights to Matt Miller and Kailey Leinz on Bloomberg Crypto on May 31, 2022.
“We’re still in the early adopter phase and we will go through ups and downs, but the key thing is to look at the fundamentals. Certainly the price moves and we can react to it, but it does not change the validity of the underlying technology. The fundamentals, which is how many people are adopting this technology are continuing to really shift in a positive way. A couple of years ago we were at tens of millions of users and today we’re at hundreds of millions of users. In two or three years from now, I think we will be talking about billions of users.”
When it comes to stablecoins and the regulatory landscape, Charles was deliberate in the need for stablecoin issuers to have a primary prudential regulator. He stated that if a stablecoin does not have a primary prudential regulator, it should not be considered a true stablecoin. Today, only Paxos Trust Company’s USDP and BUSD, along with Gemini’s GUSD, have primary prudential regulators.
“We’ve invested more in regulation than anyone in the space. We were the first company to form a Trust in the state of New York in 2015. We did this deliberately. My point of view is that we are going to create mainstream adoption. How do you do that? You do it by being trustworthy and having oversight. The idea that you can get societal wide impact without oversight is being short-sighted. We went and sought a primary regulator – someone who oversees us [Paxos] and our tokens… We wanted to indisputably be the safest institution to use to build your infrastructure on. What happened with Terra cannot happen at Paxos. You cannot have that type of fundamental flaw in our product set.”
When looking at where the crypto economy stands in comparison to the entire global economy, Charles reminded us that digital assets are in early innings. But that does not mean this technology should be ignored. Instead, the US should embrace blockchain and look at it critically by implementing smart regulations.
“Our goal at Paxos is to replatform the financial system. To take $600 trillion worth of assets and put them into a blockchain. People want dollars and they want them to move at the speed of the internet… We could become the rust belt of financial services if [the US] does not adopt this technology.”
Check out the entire clip to understand the Paxos perspective.