John McAfee — cybersecurity expert and crypto bull, says stablecoins could hold the key to solving some of the core issues with decentralized exchanges (DEX). With centralized exchanges still holding sway in the crypto trading markets, some cryptocurrency purists say DEX adoption needs to become the focus if virtual currency dealings are to be truly independent.
Government authorities continue to force centralized platforms to adopt robust compliance to know your customer (KYC) and anti-money laundering (AML) policies. Meanwhile, McAfee recently launched the McAfeeDEX which is open to all countries and has no KYC protocols.
No Need for Fiat On-Ramps on Crypto DEX
In a Twitter video posted on Sunday (October 20, 2019), McAfee identified fiat on-ramps and off-ramps as the major headache for crypto DEX. Unlike their centralized counterparts, DEX platforms cannot easily handle fiat transactions.
Fiat currency and decentralized exchanges. Where are we headed? pic.twitter.com/0VBabB6eJP
— John McAfee (@officialmcafee) October 20, 2019
Commenting on the problem, McAfee opined:
“What is the main issue with decentralized exchanges? It is how to get your fiat currencies in and out. [It’s] very difficult since no information is collected on a decentralized exchange — no name, no address, no social security number, no email, nothing. It’s difficult to do.”
Fiat on-ramps aren’t only a problem for DEX, but they also pose significant issues for centralized platforms operating in areas with stringent government regulations. In China, for example, traders on peer-to-peer (P2P) platforms have to utilize backchannels in payment processor services to deposit yuan for Tether (USDT), which is then converted to bitcoin (BTC).
For McAfee, stablecoin utilization solves this particular issue for crypto DEX platforms. Rather than face the tenuous processes required for fiat transactions, the crypto bull says crypto DEX services should adopt stablecoins like DAI.
McAfee highlighted the benefits of using a stablecoin like DAI, pointing out that its value never differs from the U.S. dollar by more than one percentage point. Such stablecoins can in McAfee’s opinion be used in lieu of fiat currencies and are easily convertible to U.S. dollar when traders have need of such.
Fiat Trading the Missing Link for DEX Platforms
McAfee’s commentary possibly provides a viable route by which crypto DEX platforms can chart their way to becoming the popular type of exchanges for cryptocurrencies. Centralized platforms like Binance and Coinbase still account for the overwhelming majority of cryptocurrency trading activity.
Ease of use is one of the major problems associated with crypto DEX platforms. Critics say marketplaces like Binance have a more streamlined user-interface.
For Andrew Hamilton, CEO of decentralized exchange platform Rubix.io, new entrants into the crypto DEX arena are well aware of such issues and have engineered their services to alleviate the problem. According to Hamilton:
“Traditional decentralized exchanges haven’t quite been able to manage usability and robust order-matching functionality.”
If crypto DEX platforms can incorporate fiat trading in the form of stablecoins, perhaps they may begin to see greater utilization. Some commentators even say that crypto DEX platforms might hold the key to total cryptocurrency independence from mainstream financial and regulatory infrastructure.
Earlier in October 2019, McAfee launched a new crypto decentralized exchange platform called McAfee DEX. According to the details of the launch, McAfee DEX does not require KYC of any sort.
The launch announcement also revealed that tokens running on the Ethereum blockchain can be added free of any listing fee. The team at McAfee DEX says it has plans to expand its listing catalog.
For McAfee, the launch of the DEX is part of his long-standing position that decentralized exchanges hold the key to the advancement of the cryptocurrency movement. The crypto bull stated that platforms like McAfee DEX move crypto trading from the realms of pure speculation towards fulfilling the libertarian dream of separating money from the state.
Despite the 2018 bear market, McAfee still maintains optimism for the future of the crypto market, especially bitcoin. As previously reported by Blockonomi, McAfee still holds to his $1 million by 2020 bitcoin price prediction.
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