[임동민] The planned future of finance-JoongAng Ilbo

[출처: 셔터스톡]

[Economist Deconomy] The crypto asset market is on a steep rise. The total market capitalization of crypto assets exceeded $1 trillion, and the market caps of Bitcoin and Ethereum exceeded $750 billion and $140 billion, respectively. Bitcoin’s market capitalization climbed to 8th after Apple, Saudi Aramco, Microsoft, Amazon, Alphabet (Google), Tesla, and Facebook. Considering that the global stock market is booming, the rise in crypto assets is very explosive (as of January 10).

I’m an analyst who looks at the asset market from an economic point of view, but I tend to try not to judge the rise of assets in a macroscopic way. It looks at trends such as economic growth, interest rates, exchange rates, and corporate performance in the current economic and financial market conditions. Among these, I tend to focus on how the intrinsic value of individual assets will be formed and how they will be evaluated in the market. In this context, the rise of Bitcoin and Ethereum is a movement that reflects the fundamental formation of individual assets. Bitcoin is a process of confirming its potential to function as a collateral for economic and financial value that will be newly created through the Internet and blockchain. In particular, PayPal and Square are showing a movement to use Bitcoin as an online payment method. If the bitcoin held by the PayPal·Square payment platform is recognized as a stable collateral, it can provide primary financial transaction functions such as transfer, remittance, and settlement. The same goes for Ethereum. Visa, the world’s largest payment company, has signed a partnership with Circle, which issues dollar-linked stablecoins based on Ethereum. If PayPal Square chose the Bitcoin blockchain, Visa chose the Ethereum blockchain. By recognizing Ethereum held by the Visa and Circle partnership platform as a stable collateral, the services provided through Visa Card can be provided now. This is consistent with the view of Bitcoin and Ethereum like stocks of existing platform companies. It is in the same context as the process of evaluating future business plans and value resulting from companies related to Bitcoin and Ethereum such as PayPal·Square, and Visa·Circle. In this way, it can be evaluated in the same context (Circle is a non-listed company) as the stock price increase of Bitcoin, Ethereum, PayPal, Square, and Visa. The asset market price rises sharply when the market cap is small before earnings become reality. When expectations are postponed or canceled, or earnings do not meet expectations, the market price is adjusted. In addition, the value of the asset fluctuates as it repeats the process of confirming sustainability and being evaluated for new scalability or growth. Not long ago, when Joindie presented its prospects for the crypto assets market in 2021, I gave an opinion on’Sang, low and high’. Although we are optimistic about the potential of Bitcoin and Ethereum as an inclusive financial network, it is necessary to confirm the expectations formed in the second half of 2020 in general, and in the process, the market believes that an adjustment process will be involved. This is a somewhat stereotypical view of the market, but it is worth noting that it has been a historically repeated trend. Meanwhile, in order for Bitcoin and Ethereum to be used as a transaction or collateral on the payment platforms of PayPal, Square, and Visa, the institutionalization needs must be met. In providing transnational financial services such as anti-money laundering (AML) and customer identification (KYC), it is necessary to confirm the international framework and domestic requirements. In particular, in 2020, international discussions on global stablecoins became active. Stablecoin appeared as a self-sustaining movement in the crypto asset camp to implement a price stabilization mechanism for actual transactions and collateral functions. About two years ago, private companies such as Facebook have shown a movement to expand their business models to finance through stablecoins, which is emerging as a megatrend for tech companies to enter the financial industry. From the perspective of the government and central banks, there is an attempt to incorporate cryptographic assets and private currency into institutional rights, and to issue digital currencies such as stablecoins, part of the original currency. When issuing and circulating digital currency for part of the original currency, it is necessary to prepare how the existing financial system should accommodate it. In other words, stablecoin is a place for all economic actors, including crypto assets, private companies and private banks, central banks and governments, to discuss together. On Tuesday, January 12, a webinar on Decentralized Finance (De-Fi) will be held for about 2 hours starting at 2pm. It will be a great opportunity to think together to actually build the future of finance. Dongmin Lim Kyobo Securities Economist ㆍCo-host: Join D, Blockchain Law Society, KAIST ㆍPresentation (January 12th 2~3pm) -‘The necessity of legal consideration of Blockchainism and DeFi’ The characteristics and trends of the DeFi project through empirical examples’ (Reporter Sang-hyuk Jo, 20 min.) 3~4 o’clock)-Progress: Ki-Bae Kim, Senior Researcher at KAIST (WEF Blockchain Fellow)-Panel: Judge Jeong-Yup Lee, Chief Judge Doo-Wan Nam, CEO of South Korea, Maker Doo-Wan Nam, Representative Attorney at Renaissance Law Firm, Jonghyun Kim, Blockchain Program Manager, Ministry of Science and Technology Information : Join D YouTube streaming https://youtu.be/vcavXbIiu7w