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People already realize that blockchain technology and, consequently, cryptocurrencies solve several problems in the financial system, such as high fees, difficulties and slowness to perform transactions. The conclusion is from Transfero’s CEO, Thiago Cesar, and the company’s Director of Products and Partnerships, Safiri Felix, who spoke at NovaTalks 2021 about the perspectives of cryptoassets in the traditional financial market.

According to them, the industry has evolved in recent years, especially from 2020, with the growth of DeFi applications and the development of blockchains. “The range of solutions in the crypto universe is quite broad. One example is stablecoins, such as BRZ, which make a direct link from decentralized applications to  finances”, said Cesar. “Anyone who has used a stablecoin realizes the difference of using a fiat currency and a transaction without intermediaries”, added the executive during the event sponsored by NovaDax in partnership with Digitalks.

In such a context, stablecoins must play a primary role. “On the one hand, we have the limitations of the traditional financial system and, on the other, the possibilities of decentralization, tokenization and DeFi increase. Stablecoins are key parts to making this ecosystem work. Its purpose is to reduce the frictions of the banking system”, Felix said.

Popularity of solutions

With innovations underway, it is natural that more people pay attention to this market and become interested in the solutions. However, for Felix, the industry is still in a “warming up” phase. “Currently, the quality of the code itself tends to improve a lot, there are network infrastructure issues, so we are still building the foundations of this new financial system”, he explained.

So, according to him, the crypto universe should still grow a lot and become popular. “The next few years will be promising”, he said.

Stablecoins overview

In the context of stablecoins, Felix highlighted the role of the BRZ, which connects Brazil with other global solutions. “It is possible to trade BRZ, which is a stable token in real, in the same way as bitcoin, 24 hours, seven days a week, without depending on an intermediary”, he noted. “BRZ is the most relevant non-dollar-pegged stablecoin in the market”. 

But the director of Transfero notes that it is necessary to divide the stablecoins into two main use cases. “In ‘version 1.0’, stablecoins have already consolidated ways of use and solve issues such as value transfer and agility to move resources”, he explained.

The second version (or 2.0) of stablecoins, he said, would be the use in DeFi solutions. “DeFi necessarily trades with digital assets. In this case, the financial system prevents much of the uses from being prospected and stablecoins become necessary.”

Financial system assimilating little by little 

In the experts’ assessment, the traditional market is paying attention to solutions in the crypto universe, but still in version 1.0. “Now, we are seeing launches of ETFs, which enable investors to expose themselves to bitcoin. But that could have been done directly by the investor as early as 2012/2013. The financial system is still moving slowly, assimilating the new technology”, said Cesar.

In his view, this movement is quite positive, as it causes more investors to expose themselves to cryptocurrencies, through the banks’ products. “It’s a learning start that piques interest and allows people to seek information. Consequently, more users come to know the opportunities of this market, such as DeFi, NFTs, among others”, pointed Cesar.

 “Maybe in four or five years, the financial system will launch an ETF that integrates stakes in DeFi, for example. But I don’t believe in the eradication of anything; the financial system competes with the services that crypto companies provide, but one does not invalidate the other”, said Transfero’s CEO. The reason, he said, is the regulatory limitations of the financial system. “The user on the cutting edge can use the parallel services, without giving up the traditional market”.