On 24 October, as a preamble to the Plan B conference on Bitcoin in Lugano, Tether CEO Paolo Ardoino opened the proceedings with a statement: "We have succeeded. Bitcoin is now recognised as a store of value. ETFs and the community have contributed to this recognition, but now what is the next step?"
This statement reflects the evolution of Bitcoin since its creation in 2008 (the white paper celebrates its 16th birthday today) : to be a disruptive currency fulfilling the three fundamental functions of unit of account, of reserve of value and intermediary of exchanges.
Today, we have to admit that we are not totally there. While it is perceived as a store of value, comparable to gold, bitcoin is indeed much less so in the other two aspects.
It remains limited as a unit of account: prices continue to be indexed in EUR or USD even on crypto platforms, and its adoption as a means of exchange is still held back by legislative challenges.
The players in the ecosystem are therefore tending to abandon the idea of replacing traditional currencies in favour of the smooth integration of Bitcoin into the global economy.
Bitcoin is seen as a stable and decentralised solution, capable of strengthening national currencies thanks to the support of stablecoins (such as the USDT and USDC), which are used as a hedge against inflation in fragile economies such as Argentina and Turkey.
It is no coincidence, moreover, that at the same time at a conference in Kazan, Russia, the BRICS (Brazil, Russia, India, China and South Africa) were considering a reform of the financial system to reduce their dependence on the US dollar.
In this context, Ardoino positioned Bitcoin as a key player that can accompany the current financial order: "Bitcoin does not aim to dismantle the financial system, but to strengthen it, by integrating solutions that promote inclusion, security, compliance and privacy." What a long way we've come from the original, disruptive idea of Bitcoin!
Technological advances During the conference, attention also turned to technological advances in Bitcoin. Jimmy Song, entrepreneur and educator, described Bitcoin as a potential complement to traditional financial systems, while Jack Mallers, CEO of Strike, a Bitcoin payment service provider, highlighted the value of innovations such as the Lightning Network and the Liquid network for fast and secure transactions.
Liquid, designed as a sidechain of Bitcoin, is a particularly promising solution for facilitating the circulation of tokenised assets by offering rapid transfers between platforms without requiring direct validation on the main blockchain.
Adam Back, CEO of Blockstream and co-developer of Liquid, said, "The Liquid network allows users to transact privately, quickly and securely while benefiting from the robustness of Bitcoin as the core blockchain." These innovations, such as Liquid and the Lightning Network, could also be integrated into the infrastructures of digital currencies of central banks (Euro Digital), technologies that converge with those of Bitcoin to meet requirements of speed, security and confidentiality.
Finally, these discussions, whether held in Lugano or Kazan, show a convergence of ideas: the future of finance could take shape through innovative approaches where blockchain technology has become essential. It remains to be seen whether the so-called traditional currencies, such as the dollar and the euro, will retain their hegemony.
