While innovation remains common ground for the cryptocurrency ecosystem, leading entrepreneur Brock Pierce featured in a Two Prime interview to give his take on the latest happenings within the landscape. Speaking about the emerging innovations, Pierce mentioned that he was “a big fan of security tokens” while highlighting his involvement in creating the first of its kind security token named BCAP.
Adding to it, Pierce stated,
“We are only now (this year) starting to see the first security token exchanges in place. By next year, we probably will have a sufficient amount of infrastructure, enough competitive operations, that we’re not reliant on one player in the world.”
In comparison with the current financial market, Pierce speculated that financial products such as venture funds and private equity funds will not participate in cryptocurrency’s mass adoption. He added that such financial bodies will not be willing to tokenize their current offerings, mainly because it would not generate more income.
On the contrary, the entrepreneur mentioned that the new entrants including startup funds will lead this initiative, and have a leading edge by offering shorter liquidity and more transparency. Pierce also envisioned to “tokenize intellectual property as security tokens” wherein the general public would be allowed to invest in various art forms including Broadway plays, record albums and movies. Hinting towards the project’s near completion, he said,
“I don’t think we’ve announced the launch dates but I think the concept of tokenizing security tokens for intellectual property around entertainment is going to be fully enforced next year. I think that we will onboard hopefully tens of millions of users to the entertainment business.”
UAE notes surging crypto demand as country deliberates regulations
2019 has seen large-scale blockchain adoption. With China trying to beat the world to its central bank-backed digital currency, the United Arab Emirates [UAE] too, has begun drafting regulations. According to reports, UAE has been preparing for a rapid expansion in light of increasing demand for cryptocurrencies.
According to Google trends, the terms with an increased volume include, Bitcoin and cryptocurrency, along with other cryptos. However, apart from the search hike during the 2017-18 bull run, the trends for Bitcoin and cryptocurrency were at a rise in the UAE in 2019.
The search volume for Bitcoin remained quite high in the sub-regions of Umm Al Quwain, Ajman, and Ras al Khaimah. While ‘cryptocurrency’ search trends were high in Dubai, Abu Dhabi, and Fujairah.
Apart from the rising trend, the country has seen crypto transactions worth over $210 million, making it one of the top countries reporting digital asset transactions. At Dubai’s International Financial Centre the country registered 100 fintech firms, a three-fold growth since 2018.
In early 2019, two UAE startups raised almost $210.5 million in token sales, accounting for almost a quarter of the total capital amassed globally according to CoinSchedule in April.
According to reports, the increased trading has lured many institutional investors and may expand in Dubai mainly due to extensive inflows of institutional investors.
UAE had previously announced its Securities and Commodities Authority [SCA] had sought the opinion of financial industry partners for finalizing the draft. For which it invited various investors, brokers, financial analysts, researchers, media and other interested parties to review the draft.
SCA had also announced to introduce Initial Coin Offering [ICO] by the end of the first quarter, while it was working on the ICO token trading platform.