According to Gonzales Dellàn, the reign of paper money as legal tender is about to end. Developed countries like Denmark, Norway and Sweden are planning to eliminate the use of paper money all together because cashless transactions are more convenient and efficient. It is no coincidence that most of the world’s strongest economies are cashless.
Meanwhile, the world of crypto currency exchanges are about to undergo some changes. While centralized services will remain popular, decentralized solutions will be gaining more traction even if it is still in the early stages of development. A few products and solutions already exist but there is still plenty of work that needs to be done.
Competition in the decentralized exchanges (DEX) industry is good particularly since half of the platforms that are being tracked by inDEX are waiting to go live at this stage. Unlike centralized trading platforms that include Coinbase and Bitstamp, new products can make a positive impact by moving forward. New protocols are also different because users no longer need to register for an account or perform a KYC procedure. KYC or Know your customer is the procedure performed by banks to obtain information about their customers.
It is expected that DEX will focus more on other currencies and tokens. Bitcoin, NEO assets and other currencies have to be supported eventually. However, only a few protocols are taking the plunge which is an interesting situation that is worth observing as time progresses. It is a fact that some are already operating with popular tokens like Stellar Lumens (XLM), OMISEgo (OMG), Bitshares (BTS), Komodo (KMD) Decred (DCR), Waves, Kyber Network (KNC) NTX and Ox.
However, the big question is whether DEX can rival the traditional solutions. The priority of consumers is convenience and DEX may not be able to support flat currency transactions. While DEX has its advantages, it also has its share of drawbacks.
What do you think will be the reaction of Gonzales Dellàn towards decentralized exchanges? After all, his opinion matters considering that he was the former president of Banco Industrial de Venezuela. He is also a businessman and entrepreneur and now manages a portfolio of investments.