Cathie Wood, CEO of Ark Invest, commented on the future of money transfers and how we may see a whole new branch of assets (cryptocommodities) being listed on exchanges.
Moving money has been a profitable business for many (ask Western Union), but a top tech investment firm’s CEO thinks cryptocurrencies will lead the way for free money transfers around the world.
Cathie Wood, head of Ark Invest, expressed her views on how cryptocurrencies will change the financial landscape in times to come.
She argued that the current methods of money transfer are very expensive due to exorbitant fees, but with the increasing pressure of digital currency transfers, traditional service providers will either have to reduce fees or go out of business.
According to the CEO, in the future, transactional data is going to be so valuable that fees will move out of the picture:
“Right now, you pay the conversion fee from fiat currencies into crypto and back again and those [rates] are 2 to 3 percent. That’s a lot better already. But we think that the data is going to be so valuable that money over IP is going to be free because the transactions will be the information that companies want to get after.”
Her views are in line with some of the changes we saw in recent decades, as paid communication services gave way to free ones (WhatsApp, Facebook) because companies wanted to increase their user bases in order to gather more data.
She also revealed that about 20% of the money transfers in the region between Philippines and South Korea are utilizing Bitcoin, without the participant’s knowledge.
Interestingly, today we also reported about a partnership between IBM and Stellar, the startup behind the Lumens (XLM) cryptocurrency, as they work together to develop a blockchain-powered platform that facilitates money transfers in the South Pacific region.
Cathie also spoke about digital or “cryptocommodities” going up on traditional exchanges as digital currencies and blockchain technology gain mainstream adoption.
“It’s interesting that you’ve got corn and oil and copper trading on the exchange but you don’t have computing power, and bandwidth, and storage. Well, we think that’s going to happen because of blockchain technology and all of the cryptos that are coming along.”
At the rate at which things are moving, many believe crypto-growth is going to outdo the growth of the internet, and will spawn a whole new eco-system of apps and services that will change the way we do business and communicate.