Crypto ventures need to assure their customers with accountability, regular updates, routine audits, and transparent practical solutions.
PALO ALTO, Calif. (PRWEB) January 25, 2023
Investors are apprehensive about cryptocurrencies. Failed DeFi projects, stablecoin fallouts, FTX, and Celsius bankruptcy- several factors have contributed to this fear as the persistent crypto bloodbath reduced the overall crypto market capitalization by more than half. PayBito CEO Raj Chowdhury expressed his optimism in regard to the future but added that crypto ventures need to enhance transparency and implement tougher security protocols parallel to TradFi to sustain in the long run.
In the middle of the global outcry surrounding crypto regulation, Japanese financial regulators have pointed out that the root cause of the problem is the absence of crypto regulations, and lackadaisical internal control and governance. Dismissing the notion of crypto’s underlying technology having any part, they have urged global regulators to treat crypto in the same manner as traditional banking and finance systems, with tighter control.
The PayBito chief asserts, “Crypto ventures need to assure their customers with accountability, regular updates, routine audits, and transparent practical solutions.”
Chowdhury suggested possible ways to improve customer trust in existing crypto ventures. His recommendations include initiating a decentralized smart contract-powered insurance system to issue payments in favor of affected parties similar to conventional finance systems. Enhancing the accessibility and user experience of DeFi projects will also boost client fund security.
“Crypto managers must understand that crypto architecture is not designed to operate on fractional reserves like conventional banks, and they need to act accordingly”, mentioned Chowdhury, who had previously criticized former FTX head Sam Bankman-Fried for the gross mismanagement of investor assets.
The PayBito digital assets exchange, helmed by Chowdhury, is based in the US. It continues to be a leader in tech research reports as a white-label crypto exchange provider, having delivered solutions in over 26 nations. The firm pushed its innovation further normalizing access to crypto trading services with the world’s first white-label crypto broker platform.
Crypto’s rapid ascent to mainstream relevance has been possible due to the technology setting forward new standards in transparency, real-time visibility, and business process optimization. However, it is absolutely critical to safely establish an assurance for investor asset protection, which can be attained by imbibing certain objectives of TradFi.
About Raj Chowdhury:
Raj Chowdhury is the Managing Director of HashCash Consultants and Paybito. Raj pioneered the first interbank Trade Finance and Remittance implementation of Blockchain Technology between two of the largest global banks. Raj is an eminent voice in the Blockchain and Cryptocurrency space and actively engages with policymakers in this area. He is a contributor to Economic Times, Business World, CNNMoney and advises industry leaders in the adoption of Blockchain. He is a member of Asha Silicon Valley, a nonprofit committed to education for children in emerging countries. Author of the book 'The Dark Secret of the Silicon Valley', Raj is an investor in blockchain and cryptocurrency companies and an active member of the philanthropic community.