Cryptocurrencies are reaching more investors every year, and institutional demand is also growing in the current period. It is predicted that a new era will begin with the approval of ETFs. However, the recent statements of the US Banking regulator suggest otherwise. According to the OCC Chairman, interest in cryptocurrencies is decreasing.
Michael Hsu, the Chairman of the US Office of the Comptroller of the Currency (OCC), claimed today that interest in cryptocurrencies is waning. If he is referring to the volume shrinkage brought by bear markets, someone should show him the cryptocurrency cycle charts. However, what he was trying to highlight is that cryptocurrencies are a mess, but their technology is a blessing.
According to him, asset tokenization is extremely useful and intriguing, while cryptocurrencies are filled with scams. Describing himself as a critic of crypto, Hsu said that after speaking with global financial institutions, technology companies, and other regulators over the past few years, he has seen a division in the growth between tokenizing real-world assets and cryptocurrencies.
“They tend to act based on speculative gain hope. The main motivation seems to be profit-oriented, and the interest in crypto is focused on making money.”
The products created by crypto developers are now emerging in many areas. For example, the idea of blockchain-based currency is now being accepted by governments. Identity services supported by zk blockchain solutions are being researched. Or we can think of bonds issued through asset tokenization. However, the problem is that what they see as the useful aspect of crypto is being issued by the crypto industry itself, and it cannot be separated.
Chainlink is currently conducting blockchain tests with Swift. With its own Chainlink service, it guides major companies in tokenization. Giants like JP Morgan are researching how DeFi can be applied to their traditional systems in the future.
Hsu, who fails to understand that when the crypto industry ends, so does the blockchain-based innovation, inspiration, products, and revolutions, said the following:
“When I talk to people, interest in tokenization is increasing because it solves a problem, and interest in crypto is decreasing. Some say that tokenizing real-world assets could provide significant savings, including up to $5 billion in stock settlement costs. However, it is just crypto speculation.”