Pavel Matveev, Managing Director of Wirex, a crypto wallet, exchange and payment solution, spoke with LearnBonds.com about the cryptocurrency market and their continued growth in their business.
He mentioned new products Wirex could explore in the future and how “staking” could be the next trend in the cryptocurrency industry. Matveev also discussed Facebook’s Libra and the industry’s regulatory environment.
1. Since the cryptocurrency market is very volatile, how is Wirex affected during bear markets or times of lower interest in cryptocurrencies?
“As a payment platform that offers both crypto and fiat currency buying and trading solutions, we are less affected by market volatility. People will always need to trade currencies whether they are traveling or leaving their crypto depending on market movements.
The Wirex Visa card gives people another option to spend their crypto and fiat currencies anywhere in the world, anytime. During the bullish trajectories of the market, we usually see more people buying various cryptocurrencies, while the bearish movements prevent people from wanting to cash out. The growing popularity of stablecoins as a way to mitigate market volatility will allow individuals and businesses to fully reap the benefits of a digital ecosystem. We’re releasing 26 fiat-based Wirex stablecoins in partnership with Stellar soon, so watch this space. “
2. What were the main reasons for the launch of the Wirex WXT token?
“We are long-time supporters of the token economy. As we developed the Wirex ecosystem (business-to-consumer, business-to-business and stablecoins), we realized that the platform would benefit from its own native token. By creating a utility token, we provide our customers with unique benefits such as lower fees, improved Cryptoback, and higher limits, which makes our services more cost effective for frequent users and gives people more reasons to adopt. the digital economy.
Ultimately, we believe that creating our own token is the best way to prepare for a future economy in which thousands of tokens will be usable and tradable in everyday life.
3. What are the advantages of having a Wirex professional account?
“The Wirex Business Account provides businesses with a crypto and fiat solution to send and receive cryptocurrency payments, as well as instant currency exchange at over-the-counter and interbank rates. Companies can register under their legal name, with full control over access and permissions for their registered account.
Another great advantage of Wirex for Business is that it allows businesses to use traditional banking infrastructure (Swift, Sepa, and faster payments) while making instant payments through the blockchain. This means unparalleled control of digital and traditional currencies with greater efficiency in terms of cost, speed and security. “
4. What is your relationship with regulators, and how have things changed with them in recent years?
“The regulation of cryptocurrencies around the world is still largely a work in progress, although a few countries like Japan have already put in place sensible and in-depth rules regarding the use of digital currencies. Wirex is a regulated entity and one of only 3 crypto-friendly companies to hold an FCA license in the UK. We work closely with the FCA, which is one of the only national financial authorities to have issued guidelines on the use of stablecoins backed by trust funds as a means of transferring value.
Currently we are in the process of becoming fully regulated in Japan – we hold a Type 2 license for crypto and are currently awaiting a full Type 1 license from the FSA. Japan is the only country in the world to fully recognize crypto as a legal form of currency, which was done in April 2017.
As a responsible and regulated company, we also work closely with the MAS [Financial Transactions and Reports Analysis Centre of Canada], Fintrac [Financial Transactions and Reports Analysis Centre of Canada], and US regulators to ensure we follow appropriate local laws and protect our customers, wherever they use Wirex.
5. You launched a suite of 26 stablecoins earlier this year, what is the benefit of these stablecoins for users and the economy?
“Stablecoins provide a much sought-after happy medium between the decentralized nature of cryptocurrencies and the relative stability of the traditional currency market. This is especially important for the international remittance market. Stablecoins allow near instant payments anywhere in the world, without the risk of volatility inherent in traditional cryptocurrencies. Significantly, they bypass conventional bank rails which are both expensive and relatively slow, increasing efficiency and value for the sender. Our take on stable coins is “the more, the better”. Another advantage of stablecoins is that you don’t need a local liquidity provider such as a crypto exchange to trade them, as they represent a local currency and can be easily traded through the traditional forex market.
6. Given that you work with Visa as a card provider, do you think the growth of cryptocurrencies should threaten card payment organizations?
“Yes. Visa operates on conventional banking rails that haven’t changed much over the past 40 to 50 years. The use of blockchain can revolutionize the payments industry as scalable and more profitable options become available. I believe traditional card payment companies will begin to embrace digital currencies as their new applications and superior scalability become more apparent. The proliferation of stablecoins is integral to this massive adoption, as they remove the volatility inherent in them. the value of most cryptocurrencies.
Stablecoins are a cheaper option for traders than conventional infrastructure, allowing them to receive payments instantly while reducing chargebacks. I’m sure Visa and Mastercard are taking a close look at this.
7. Do you think Wirex and other crypto-multi-currency accounts will make crypto wallets obsolete in the future?
“No, market forces will promote competition. I think as the regulations become more standardized over the next five years, we’ll see some crypto wallets disappear and the most ethical products survive and secure market share. Awareness of the benefits of the digital economy is increasing, in part because large companies, such as Facebook, are embracing the technology, so people will become less hostile to the idea of a decentralized economy. This will lead to further growth of multi-currency accounts and crypto payment solutions in general.“
8. Facebook recently announced its Libra cryptocurrency, despite the current regulatory issues surrounding it. What do you think about it?
“Currently there is not enough information on the regulations or how their stablecoin will be pegged, so the jury is still out in my opinion. Overall, I think this is a good thing for the industry as it draws the attention of regulators to crypto and improves awareness in the mass market. However, it will be some time before we see it launch.“
9. Wirex offers payments using both cryptocurrencies and traditional money. Have you ever considered becoming a challenger bank rather than a payment platform?
“Wirex was created to solve a major problem within the crypto industry: the ability to quickly and efficiently exchange crypto for fiat currencies and spend it in everyday life. Hence the launch of the Wirex Visa card in February 2015. As the industry has grown, the range of products and services has expanded. I believe Stablecoins will transform the remittance market and become the primary currency for M2M payments, which are starting to become a reality today.
We have gradually integrated some aspects of traditional banking, such as Swift, SEPA and faster payments, to give people more options and flexibility to make payments. It helps people learn more about current conventional banking methods, allowing us to present the benefits of digital currency in a familiar setting. “
10. Do you think you’ll ever start offering crypto loans or savings accounts in the future?
“This is something that we are looking at. Staking, as it’s called, is the current trend in the blockchain world. The problem here is the amount of paperwork involved. Primarily, there is no regional regulation for crypto lending; you need a lender’s license in each country, which is easier said than done.
Thanks Pavel for the conversation!