Coinbase expects 20% of global GDP to be based on cryptocurrencies
Coinbase, the second largest bitcoin (BTC) and cryptocurrency exchange on the market, made a projection on the future of crypto assets in the global economy. For the exchange, these assets will make up around 20% of global gross domestic product (GDP) in the coming years.
During the third quarter financial results call, held on Wednesday, October 29, Coinbase CEO Brian Armstrong, shared his vision about the exponential growth of cryptocurrencies.
Armstrong compared the rise of cryptocurrencies to that of e-commerce. “If we go back to the year 2000, only about 1% of global GDP was done through e-commerce. Currently, it is around 20% of global GDP that is executed through e-commerce,” he explained. According to him, cryptocurrencies will follow a similar trend.
“We have done our own internal estimates of this and, it is somewhat difficult to estimate, but by our best estimate, approximately 1% of the world’s GDP is running on crypto rails,” detailed Armstrong, who He then clarified the company’s objective: “We really want 20% of the world’s GDP to run on cryptocurrency rails.”
The CEO of Coinbase argued that cryptocurrency systems are “faster, cheaper, more global, fairer and more free.” “Payments will flow toward the path of least resistance, like water. And these are the best payment systems in the world, with many other benefits,” he said.
Armstrong also highlighted the global interest in cryptocurrencies, not only as investments, but also as refuges against inflation and for economic freedom. “People want cryptocurrencies globally as a haven against inflation, economic freedom and good financial infrastructure, as it simply creates prosperity around the world,” he said.
“And I think we now have that foundation for the world’s GDP to increasingly run on cryptocurrencies in the coming years,” Armstrong concluded, underscoring the growing adoption and potential of cryptocurrencies in the global economic landscape.
This vision is not isolated. There is a growing consensus among experts and prominent figures in the digital economy. For example, the former Vice Minister of Finance of China, Zhu Guangyao, recently expressed that cryptocurrencies “are the engine of the digital economy,” as reported by CriptoNoticias.
Coinbase projection, backed by internal data and global trends, suggests a future where cryptocurrencies could play a crucial role in the generation and distribution of wealth worldwide.
Overall, the mass adoption of cryptocurrencies could transform the way value and transactions are understood and managed, promising a future where the digitalization of the economy is even deeper and more widespread.