BlockFi Founder and CEO Zac Prince recently tweeted that in the aftermath of coronavirus, the company does not intend to participate in a recession.
(16:01) “If there was ever a time for cryptocurrency to shine, especially bitcoin, I think it’s this macroeconomic environment. And for Ethereum, we’re very bullish on the continued rapid adoption of stablecoins that we’re seeing. So we’re feeling great about the assets that we have on the platform. We’re feeling great about the products and services that we offer for those assets. And we are already back at the exact same growth rates that we were seeing prior to that single day of severe volatility in the crypto markets about a month ago. Black Thursday exactly.”
Nisa asked Prince about the bifurcated regulatory approach between federal and state governments to cryptocurrency throughout the crisis and what it means for crypto and BlockFi, in response to which he said:
(18:34) “I think it’s going to be more of the same. I’m in general someone that would bet against any type of massively coordinated regulatory effort, whether that’s coordination between state and federal or the different bodies of the federal government that could potentially regulate something. And also if it’s coordination on a global scale where multiple countries need to collaborate to get something done. I think all of that stuff is really hard and we don’t anticipate any major changes happening this year for the cryptocurrency regulatory environment in the US and especially given that everyone’s focus is now rightfully on health issues related to COVID-19.”
Prince also offered his predictions for Ethereum going forward.
(19:54) “I’m really bullish on Ethereum…We’re bullish on it for two key themes right now. The first is [the] adoption of stablecoins. Stablecoin market caps are growing tremendously. I think they’ve doubled over the last three or four months from around $4 billion to now over $8 billion….Most of the stablecoin transactions that occur are running on Ethereum. So Ethereum is the settlement and payment processing network for this activity that’s growing tremendously. So that’s the first thing that makes us bullish on Ethereum. The second is just the ongoing development of the Ethereum blockchain and ongoing development of other applications including DeFi that are built on top of it.”