The Second Decade of Cryptocurrency? Coinbase CEO: Central Bank-supported Crypto Assets Most Dramatic

After 10 years of rapid development, cryptocurrency has now entered its second decade. Coinbase's CEO and co-founder, Brian Armstrong, recently shared his vision for the next 10 years of the cryptocurrency industry on the official blog.

Blockchain User Growth Reaches 1 Billion

In the article, Armstrong predicts that users will grow rapidly over the next 10 years, from 5,000 ten years ago to over 1 billion users.

In addition, high-capacity, scalable, and privacy-focused blockchain systems will emerge to attract more users. Armstrong did not specify which chain it would be, nor did he explain whether any current public blockchains are suitable.

Armstrong believes that there will be two main markets for crypto assets and blockchain technology. One will come from unstable financial systems and underdeveloped emerging markets, while the other will come from crypto startups launched by startups. He pointed out:

Most tech companies will adopt blockchain and crypto-related technologies. Over the next decade, with the rise of central bank digital currencies, government agencies will be heavily involved in the crypto industry.

Scalability, Utility, and Privacy Will Reshape the Crypto Industry

The crypto industry currently faces scalability issues, with most blockchains being unable to handle widespread consumer adoption due to low efficiency. Armstrong believes that second-layer solutions will bring scalability, stating:

Transaction throughput will increase by several orders of magnitude, and once blockchain scalability improves, new applications will begin to develop rapidly, leading to new types of crypto startups. Unlike those ICO projects, these companies will offer more services.

Armstrong also mentioned that privacy will be a key feature of blockchain, similar to how HTTPS became the default connection mode for the internet. He envisions that in the coming years, privacy-enhancing blockchains will rise.

In addition, we may see small projects and mergers between chains in the future, including mergers of developers, user bases, and market values. Armstrong predicts that the most significant gains will come from blockchain projects that make the most progress in developer tools and related functionalities.

Armstrong believes that in the next decade, crypto assets supported by central banks will be one of the most dramatic developments. He pointed out:

China has already begun digitizing the Renminbi and making blockchain one of its core technologies. I believe we will see a combination of digital currencies launched by consortia like Libra, CENTRE, or by the International Monetary Fund (IMF) itself.

Armstrong concludes that the cryptocurrency field will transition from initial trading and speculation to real-world practical applications, and by 2030, the number of people holding and using cryptocurrencies will significantly increase, truly driving global economic freedom.

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