The digital assets market had been growing steadily since the coronavirus crash and many cryptocurrencies have surpassed their all-time highs. They are starting to disrupt traditional financial services and are expected to influence this area. Even big global players and regulators will have to consider digital assets in their strategic plans.
FinTech Roadmap
For every area of FinTech, we create a strategic table in which we identify incoming trends, key factors, challenges, and comparison of the state in the Czech Republic to other countries to provide companies an overview on how to implement the newest technologies.
| Incoming trends | Key factors | Challenges | Comparison to other countries |
| Publicly traded companies are starting to buy Bitcoin as a reserve asset | Hedge against an inflation | Bitcoin still is an unstable and volatile asset | As far as we know no Czech companies are buying Bitcoin as a reserve asset. |
| The global effort to regulate cryptocurrency | The growing market capitalization of the cryptocurrency market brings cryptocurrencies more available to more people, exchanges must carry out KYC | Because of their decentralized nature cryptocurrencies are hard to regulate. Its regulation could partially disrupt their sense | Czech National Bank has made a statement saying that they don’t see cryptocurrencies as a means of payment or investing service and therefore won’t be regulating it |
| The emergence of digital custodians | Storing digital assets safely, cyberattacks on exchanges, easy way of investing into cryptocurrencies | Ensuring the safety against cyberattacks and keeping it user friendly to use cryptocurrencies at the same time. Differences between various regulations | First digital custodians are starting to appear in CR |
| Non-fungible tokens (NFT) | Writing ownership rights to blockchain and easy transferability of them, the creation of virtual assets, proofing of authenticity | Tokenization of real-world assets | We didn’t find a Czech company that is using NFTs. Global players such as Vodafone and Ubisoft are starting to use them |
| Lightning Network | Scalability problems (transaction limits and speed, high fees) | It can’t provide the safety of blockchain, wider adoption, blockchain atomic swaps | Some merchants and e-commerce sites in CR are already accepting payments via the Lightning network |
| Decentralized Finance (DeFi) | Providing financial services without a middleman, smart contracts | High fees, buggy smart contracts, inadequate regulation, UX of most DeFi apps is not what an average consumer expects, collateral-based loans don’t make sense for most people | We didn’t find a Czech DeFi company. |
News
- Digital assets in the world of traditional finance and the DABF conference with Martin Skákala, the Executive Director of A27 Management Services
- Our Crypto Conversations – A Community Discussion Forum and Live Q&A
- MiCA Regulation with MEP Ondřej Kovařík
- Blockchain’s Potential in Financial Services
- Islamic FinTech Leaders Summit 2022
- Cornell Financial Engineering Manhattan’s Future of Finance Conference
- FinovateFall 2022
- ChainCamp
- What are the top trends and technologies transforming financial services?
- UTXO.22 | Otevřená komunitní kryptoměnová konference
