You have recently stated that the Bitcoin network needs an upgrade to allow larger blocks. Is the block size debate hurting the digital currency market?
At the moment the issue with the block size is not hurting my business. However, it restraints the growth. Many users and companies have put the large Bitcoin projects on hold and are waiting for the issue to be resolved. There are many ways to address the block size problem, the only thing they all lack is the consensus among the community. As soon as the consensus is reached, all things will go smooth.
UK-based banks have recently made a lot of steps towards testing blockchain or even creating a Bitcoin-style digital currency. Where, do you think, does this attraction towards cryptocurrency come from?
UK banks are doing great in trying to adapt blockchain-like systems. However, I believe that all these efforts are useless. All the benefits of blockchain are caused by decentralisation of the network and not depending on a single entity like a bank. The system works only in case there is no single bank or even the consortium of banks to control it. Otherwise, all the benefits disappear.
Is blockchain a threat to big financial institutions?
I do not think that Bitcoin will really ruin big financial institutions, as Bitcoin and blockchain are tools, not the final product. For banks, most of the profits come from issuing credit products and not from payments fees.
How can Bitcoin remittances be used to benefit developing countries?
: ~8% to ~2%. That delta of fees will be spend not on banker’s annual bonus, but on infrastructure in developing countries. Additionally, cheaper and faster remittance means that people from developing countries can be easily plugged in existing financial ecosystem. Imagine millions of new entrepreneurs from developing countries. This can change a lot.
Which are the following steps for the cryptocurrency and blockchain industry?
I think nothing radical is required. Price stability, user and merchant adoptions are increasing, transaction cost and exchange fees are decreasing. It’s all going well.
George Basiladze was a speaker at Bitcoin Conference Prague, an event covering the latest and hottest topics of the year: forecasts, analysis and best deals for working with cryptocurrencies.
About George Basiladze
George is a co-founder of Cryptopay and former finance executive. Having started his career more than 8 years ago, he has the excessive experience with M&A, commercial banking and pay day loans.
About Cryptopay
Founded in October of 2013, Cryptopay is a wallet, exchange and debit card provider. The company is a one stop shop for all bitcoiners and a link between the world of virtual currencies and traditional financial world.
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