Financial institutions on both sides of the crypto fence are having a tough time in the current global economic and political climate. But does this picture mean we should hide our money under our beds or forever stay with the old fashioned bank down the street?
Quite the contrary, says Seamus Rocca, CEO of global private bank and Bitcoin custodian Xapo. He shares five reasons why those from weaker financial markets should consider offshore financial safeguards now more than ever.
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“The world is in a permanent state of crisis at the moment, and this is deepening the financial access chasm between those from developed markets and those from developing markets,” says Rocca.
“Currency volatility, inflation and other global market forces are wiping a lot of hard-earned value off the table for emerging market entrepreneurs and professionals.
“The only way those individuals can safeguard their money is to hedge their risk with some exposure to global investments and decentralised currencies that are immune to country risk, held in a secure offshore environment in a trusted and regulated jurisdiction. This is the future for wealth preservation and growth in our constantly changing, polarising and volatile world.”
Regulators are adding relentless pressure on top of market and political volatility, customers are becoming more discerning, and many institutions have simply grown too fast or too irresponsibly, warns Rocca.
“What we’re witnessing now is a massive global wakeup call. Those financial players who were reckless cowboys will get taken out, but those who went into this Crypto Winter well-provisioned, well-structured and with adequate caution and foresight, will make it to Spring and blossom. That’s where you want to invest for long-term future returns.”
All the reasons why we became Bitcoin custodians in 2013 still stand and they will continue to stand regardless of what happens in the market, says Rocca.
“Bitcoin is robust and secure, decentralised, transparent, immutable and faster to process than fiat currency. It also meets all the criteria of a stable and legitimate currency, including scarcity, widespread use, divisibility, insensitivity to inflation, acceptability, portability and durability, plus it’s virtually impossible to counterfeit and its digital ledger is always traceable.”
“Many people, including entrepreneurs and professionals are no longer staying in just one place to work. Many business people, especially those from emerging markets who are seeking more safety for themselves, their families and their business, are becoming world citizens. They need solutions to offshore their money and protect it against currency volatility, political and economic upheaval, and other country risks. International private banking with secure Bitcoin storage and protection is what they need,” says Rocca.
“While some regulators are in panic mode right now, I do believe it was inevitable and necessary for the crypto industry to be more closely scrutinised by national and international regulatory bodies. The regulatory crackdowns that have been happening recently are starting to separate the corn from the chaff.
“It was always inevitable that the worlds of traditional financial regulation and the decentralised world of crypto currencies would be brought into greater alignment as they begin to overlap.”
According to Rocca the important thing for regular crypto investors to realise is that it is still possible to stay invested for the long-term, but they need to seek out the responsible custodians who are actively seeking to be regulated and who can prove through their track record and the credentials of upstanding partners and investors that they are above board and here to stay.
“Always check who is on a VASP’s board of advisors, who gave them their funding, and if they are regulated in a credible jurisdiction.”
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