We talked to José Ignacio Trajtenberg, CEO of Xcapit, about the potential of crypto coins, stablecoins and the services they offer anchored in technology
José Ignacio Trajtenberg is Argentinean, CEO and co-founder of Xcapit. We talked to him about the potential of cryptomonies, stablecoins and the services they offer anchored in technology.
Fernando Quirós (FQ): What potential do you see for Bitcoin and cryptomonies?
José Ignacio Trajtengerg (JIT): The potential is immense and I like to think of it from an even wider universe, the so-called crypto-economy. Depending on the technology, we have created new economies in ways that would have been impossible to imagine.
The attribute of vehicle of value, both for reserve and for exchange, takes on another dimension when we are talking about global currencies in free competition and with different characteristics that serve different purposes.
In particular, delegating the governance of a digital currency to all those who have “skin in the game“ is truly a reversal of the traditional scheme that led to the collapse of practically all sovereign currencies.
Governments have been deciding monetary policy in a split with the consensus of their peoples and this, philosophically, cannot have the empathy that is needed. Without wishing to enter into politics, I believe that it is very healthy to have objective elements such as mathematics and programming to give rise to a fairer monetary model. And, also, to understand that the potential is going to develop as both the adoption and the use cases evolve.
FQ: Do you consider that cryptomonies are a paradigm shift in the IJT: finance and the way to transfer value?
JIT: I understand that the paradigm shift goes beyond finance to make us think about the standards of value we have and the way human beings and institutions relate to each other in that environment. In this sense, understanding that the „trusted third parties“ who mediate in people’s transactions, providing no more value than a technology and mathematics-based protocol can provide, will gradually disappear.
Thus, the emphasis that this technology puts on the „person to person“ relationship, makes it possible for us to have a global market enabled by the trusted environment that Blockchain provides. The geographical borders disappear before the few minutes of confirmation of a transfer with any inhabitant of the earth.
FQ In which countries do you notice more interest in cryptomonies?
JIT: In all the countries that have problems to offer with their national currencies, a correct safeguard of value or means of exchange, there is a greater penetration of cryptomonies.
Thus, Venezuela, Argentina, Zimbabwe and other countries that have structural problems related to their economy, politics and finances, become fertile ground for the proliferation of cryptomonies and their corresponding cases of use.
In short, it shows that in countries where there is a poor or deficient supply of money and financial services, crypto-money is a major option.
FQ How do you see the crypto market in Argentina?
JIT: I see Argentina as a great crypt market both from the point of view of consumption and from the creation of projects that tend to use cases. Clearly, the need to be creative and find tools that are not given, is a differential that allows the state of science and art to prosper when it comes to this type of technology.
I remember that one of the mentors at Xcapit once told us: „You were born in the right place to talk about managing volatility and uncertainty“, and I bring this up because we really lived with it from the beginning of our days and it is something that ends up shaping you.
That’s why I’m very hopeful that there will be more and more projects in the region that will generate the necessary ecosystem for later mass adoption.
FQ: How do you see the crypto market in Latin America?
JIT: Latin America has a similar course to what I was referring to with Argentina, but I understand that it will have more penetration as more asymmetries or inefficiencies exist.
Although there are very specific characteristics in each of the countries in the region, to a certain extent all of them have their own matrix that requires evolution. In many traditional industries, blockchain and crypto-currencies will burst in to provide greater access and better costs or times and, in short, to have an impact on the real value for the inhabitants.
Also, given our experience, I see it as a possibility to be able to create companies that have a worldwide impact, and to be experimental witnesses of the “pain“ that comes to solve crypto currencies.
I understand that it would be crucial that in this case the states and institutional actors realise this moment in history as a possibility and actively encourage the spread of this technology that will have an impact on the increase of nations‘ GDP and therefore on structural development.
FQ: What do you think of the attempts at regulation in some countries?
JIT: In my opinion, not enough resources have yet been allocated to this issue to ensure that it is taken seriously. Incorrect regulation of activity can become an impediment to projects and companies prospering or setting up operations in such jurisdictions.
On the contrary, it can be a great opportunity to enter and compete in global markets where jurisdictions are friendly to the development of the blockchain and crypto industry, while landings from different latitudes prosper.
I understand that this issue will play a key role and in thinking about it, I would like to think about 2030, where companies and individuals will be digital nomads and specific issues such as taxation for these types of assets are relevant.
The political boundaries known today will be more blurred and insignificant, while at the same time territories will have to compete with the liquid circulation of crypto currencies throughout the global economy. Capital will circulate in an objective and judicious manner, rewarding and punishing the conditions that the different states can provide.
FQ: Stablecoins are gaining in importance. Why is this?
JIT: It is because they offer superior characteristics in terms of value protection, exchange vehicle and fractionability. In my opinion, relying on written protocols that are based on technology and mathematics is extremely attractive to me, mainly because of those coins that have an underlying other than FIAT coins.
I understand that stablecoins are thriving also for reasons of security, custody and portability. We are in a region where cash is still abundant, and I believe that stablecoins are also digitising a large part of the region’s money supply.
FQ: What is Xcapit and where do you operate?
JIT: Xcapit is a technology company convinced that investments are evolving and we want to be drivers of that change. Under obvious investment market barriers such as lack of knowledge, time or fear of volatility, many people lack professional management of their capital. That is why we are dedicated to developing automated investment products and professional management, which reverse the traditional scheme of trust.
Thus, we manage to assemble a multidisciplinary team of highly trained talents aligned in the conviction of a common goal, working daily to offer quality products that result in value for people to have access and efficiency when managing their capital.
Currently, we have teams in Argentina and Spain established in target markets, which are working for Latin America with a focus on Argentina and with expansion plans to the region.
FQ: What services do you offer?
JIT: Focused on the crypto-currency market, we have investment products that offer 24/7 management of capital in a professional and automated manner, based on the investment objectives set by users, but without us having custody of the capital.
In this way, some features are unique to today’s products and drive our product development from Xcapit’s value proposition.
We hope to break down the barrier of trust that exists around the adoption of crypto by offering “non-custodial“ products. In addition, we are aware of the number of variables that affect the market and its permanent operation characteristics, so all our developments are automated and do not have behind the operation of any person to make this happen. This allows us to offer an attractive value proposal for our clients and, at the same time, scalable for the company.
FQ: What do you call automated volatility management?
JIT: It is precisely due to the characteristics of the crypto market, which operates 24/7 and has more than 5,500 assets listed, so the number of variables is infinite to contemplate for one person or a group of them.
Thus, the possibility of managing volatility, defined as the price fluctuations suffered by the different assets within the market, must necessarily be done in an automated manner. For this reason, at Xcapit we develop intelligent algorithms that seek not only to protect capital against the losses of the assets that make up a portfolio, but also to take advantage of the increases in other assets that allow opportunities to capture value.
FQ: You have a „non custodial“ bot that operates on Binance, could you explain more about this?
JIT: One of the principles through which we operate is to be non custodial, which is possible through operating via API with our clients‘ accounts. In this way, the investor sets his investment objectives and never loses custody of his capital, while management is carried out in an automated manner, 100% auditable, 24/7 and under the limits he has initially determined.
The professional and automated mandate allows us to operate with expertise at all times but permanently consider the objectives set by the client.