Square, Fidelity, Coinbase, and Paradigm announced on Tuesday the formation of a group meant to boost the potential of cryptocurrencies by educating policymakers, regulators, institutions, and individual investors on the benefits of digital assets, which have seen exponential growth in recent years.
The Crypto Council for Innovation is made up of the leading names in the cryptocurrency space, as first reported by The Wall Street Journal. The CCI was convened by San Francisco-based investment firm Paradigm, which focuses on cryptocurrencies.
“This work will require sharing insights and analysis about crypto while correcting the misperceptions that inevitably accompany a transformative new technology,” Gus Coldebella, chief policy officer at Paradigm and one of the organizers of CCI, said in a statement. “We know that crypto holds immense promise for spurring economic growth and creating jobs, improving financial inclusion and access, and enhancing privacy and security – and that promise transcends borders.”
The alliance said it will focus on policy priorities, convening the industry’s top leaders to devise solutions together.
CCI also said it will develop resources that will enable industry participants to gain a better understanding of how to store value, create open applications, and transact at high speeds and low costs.
The alliance, on its website, also said it will aim to debunk many “wrong impressions” the public may have towards cryptocurrencies through government relations, public education, and research publication.
The launch of the alliance comes as cryptocurrencies have rallied to all-time highs.
The market capitalization of the cryptocurrency market hit an all-time high of $2 trillion on April 5, doubling in value in just three months. The market hit the $1 trillion mark just three months before in January. Bitcoin alone touched the $1 trillion market capitalization threshold for the first time in February.
Still, the cryptocurrency space is not without critics, who often point to volatility and secrecy. These include US Treasury Secretary Janet Yellen, who once said bitcoin enables criminal activities, as well as European Central Bank President Christine Lagarde.
Founded in 2018, Paradigm invests in crypto assets and businesses from the earliest stages of formation through maturity.
Coinbase, the largest US cryptocurrency exchange founded in 2012, serves 43 million customers in 100 countries. It plans to go public this month.
Fidelity Digital Assets is a business of Fidelity Investments, one of the world’s largest financial services providers with more than $10.2 trillion in client assets. Fidelity Digital Assets focuses in blockchain solutions.
Square, whose CEO is bitcoin advocate and Twitter chief Jack Dorsey, is an online payments platform. The company’s Cash App allows users to buy and sell digital currencies.