Shortly after Russia launched its invasion of Ukraine, Artyom Fedosov @usleepwalker tweeted: ‘My Ukrainian credit cards don’t work any more. Crypto is the only money I still have…’

Cryptocurrency, to some extent, creates liquidity for assets otherwise caught on the ledger of a bank that has imposed capital controls. This can only be credited to DeFi (decentralised finance), a financial infrastructure founded on blockchain that functions effectively without a middleman. DeFi, in this case, can be a lifesaver.

(Related: Liu Yusho of Coinhako sees crytocurrency as the future of finance)

It used to be that when a country’s central authorities were hit by a crisis, a large segment of its population would be crippled. The Internet has changed that. It has made us global citizens, with access to the world at large. With over US$3 trillion worth of crypto circulating at its peak, Crypto’s escalating momentum is displacing Fiat as the global currency of choice.

Some years ago, one of my mentors, who headed a bank in Myanmar, advised his staff to buy physical gold to protect against inflation and the unforeseen. When the military seized power in February 2021, the Kyat depreciated to an all-time low, and the price of gold rose to a record high. The staff who listened flourished, and many purchased property at rock-bottom prices.

(Related: Fintech’s the future, says Kayoko Francis, founder of Finesse)

Rudy Lim
Photo: Lawrence Teo

Could crypto be the new gold? I believe it can be. From a speculative profile, it has evolved into a much-needed store of value for hard-earned money. Cryptocurrencies’ exponential growth has made digital assets far more valuable than gold. Moreover, Bitcoin at a code level is designed to be deflationary, and as such is unlikely to experience hyperinflation.

Don’t just view crypto as an asset allocation tool; it can provide opportunities for financial inclusion and sustainability through payment and transaction. As protocols evolve, addressing issues such as liquidity, interchangeability, transaction volume and speed, a more stable crypto will open the floodgates for mass adoption, and the rest will be history.”

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