Bitskwela brings the blockchain heat to La Union as debaters gather for the third ‘Bull or Bear’

As the global digital asset industry reels from the “crypto winter” and the impact of the collapsing “crypto” house of cards, while bracing for looming regulations, the Philippines continues to spread awareness of emerging technologies to support the national government’s drive to . blockchain adoption and striving for an inclusive technology sector.

One of the groups spearheading this initiative is Bitskwela. The edu-tech platform officially opened the summer season when it held its Bull or Bear: Philippine Web3 Debate in the sunny municipality of San Juan, La Union, on March 17, where debaters engaged in a fiery discourse with the goal of educating Filipino youth about the basics of new technologies and their use cases. This is the third event hosted by Bitskwela, with the first held in the bustling city of Taguig in Manila, followed by the one in the southern province of Davao.

The Bull or Bear event in La Union, one of the Philippines’ most famous surf spots, saw some familiar faces including BlockchainSpace Guild Hub General Manager Jen Bilango, retired DJ and Web3 Ambassador Patty Tiu, and Senior Partnerships Manager for GCrypto Mark Nunez, who together with experts in the field, Women of Substance NFT Founder Chezka Gonzales, BreederDAO CEO and Co-Founder Renz Chong, and Yield Guild Games (YGG) Country Manager for the Philippines Luis Buenaventura, gave attendees an engaging discussion on all things Web3.

Decentralization as a foundation in digital currency adoption

Decentralization is among the talking points not only throughout the debate, but also on the global stage, as key industry players rally for a decentralized technology industry that they promise will be more secure, accessible and efficient while giving back the power to publicly control their economy and transactions.

Unknown to Filipinos who first began their journey in the digital asset space, blockchain has been around for over a decade now, but many only paid attention to this nascent technology when Bitcoin became popular in the West in 2017 and Play-to-Earn (P2E) )- gaming went mainstream in the Philippines during the height of the COVID-19 pandemic. Blockchain, the underlying technology behind digital currencies, has become synonymous with decentralization, with key industry players often playing with these terms side by side. Despite this, centralized networks are still a formidable force in the sector, begging the question of whether there is still a need to switch to a decentralized system.

Moderator Bernadette Misa, the co-founder of Playdex, tackled this in the first round of the debate focusing on the adoption of digital currencies, starting the first question: Is decentralization a good enough value add for people to adopt digital currencies?

Of the six debaters, two said they were positive, believing that decentralization will play a crucial role in the Philippines’ use of digital currencies; three said they were bearish, while one said she is 50/50 on this.

Explaining his stance, Nunez said with the recent events in the space, such as the FTX implosion and the demise of Silicon Valley Bank, decentralization will help minimize the risk of these events repeating and provide Filipinos with a safer environment to trade or transact with. their digital currencies. Another bullish debater was Bilango, who stressed that digital currency adoption in the country would be driven by decentralization, as using such a network would provide an alternative means for Filipinos to have full control over their assets.

“I think there will be variations of decentralization. It’s not going to be black and white, but having the technology that allows you to have full custody of your own assets is something that wasn’t there before and has been a problem ever since the beginning of the trade,” she pointed out.

Gonzales has a different view on the matter, arguing that while decentralization is good, it is not the primary foundation that will help strengthen the use of digital currencies in the country. She noted that many people do not think about decentralization when shopping or using an application on their smartphones, and what is really needed is the utility of the products available. Buenaventura, meanwhile, countered Nunez’s earlier argument, saying that while centralized networks carry the risk, they are essential to help with the goal of adopting “cryptos.”

“Realistically, the only way you can transfer humanity to crypto, assuming that’s the goal we want, is with centralization because there’s no way you can think they’re fiat and convert it to crypto without some sort of centralized on-ramp or exit,” Buenaventura said, adding that centralized networks act as a bridge to help with adoption, noting that if systems like this don’t exist, Filipinos will have to embrace digital currencies via the black market.

Chong said decentralization is not enough for people to use digital currencies, as there are many factors at play. Tiu, the only debater to respond either bull or bear, took Gonzales’ argument and emphasized that the ease of using apps that promote digital currencies is what would captivate Filipinos to embrace these assets.

Art in the Web3

But blockchain is not limited to digital currencies and offers a surefire way to revitalize the arts and entertainment sector. But as everything goes digital today, we often wonder if art is losing its meaning or soul connection, as newer technologies allow more people to own a fraction of them well below market value compared to earlier days when enthusiasts needed to have millions—if not billions (PHP ) – cash to get his name stamped as sole owner of a rare art collection.

These days, non-fungible tokens (NFT) have made it possible for people to own art, with Buenaventura saying that while this is good news for many, it takes away the essence of traditional art. Furthermore, he noted that “fractionating” a work of art increases the complexity of adopting NFTs or blockchain for that matter. Chong, who liked Buenaventura, agreed that buying art in fractions loses its meaning, saying that art has become more like an investment in this style, with people only buying the fraction as they speculate that the price of just that small piece can go down. up, similar to how speculation works in the digital currency industry.

However, Gonzales believed that art does not weaken despite being fractionalized, explaining that the more people look at a particular piece of art, the more interest others have in grabbing it, possibly leading to a jump in value.

But why fractionalize? This is the main question posed by a Bitskwela attendee, who, like many in the crowd, could not wrap their heads around why there is a need to factionalize art.

Bilango was quick to point out that art is created for two main reasons – as an outlet for artists to express their feelings and as a means of generating income. Some artists also use art to spread ideas, but with the rise of capitalism, this makes it harder for creators to do so; thus there is a need or urge to fractionalize art.

She added that fractionalizing art allows audiences to “get a stake in something that they considered important from a cultural standpoint or from an ideological standpoint.”

The future of stablecoins

Bitskwela also discussed stablecoins, the digital tokens linked to different currencies to promote stability. However, with recent events in the “crypto” community, the risks associated with stablecoins have slowly been brought to light, opening a can of worms that has many asking, is there a need for more regulation in the industry?

Bilango emphasized the need for clarity around stablecoins before moving forward with design rules and understanding if there is a lack of oversight in the sector or if the existing frameworks are enough to cover the market.

“The technology (stablecoins) was moving so fast in terms of iterative evolution that the regulators could not understand … and get hold of the technology,” she said, pointing to the major hurdle that led to the depegging of several stablecoins in the sector, adding that it in fact, more regulations are needed as the industry currently has none.

Chong agreed with Bilango that stablecoins should be regulated, but emphasized that he is unsure of how much regulation should be injected into the market. Building on this statement, Buenaventura explains that stablecoins and altcoins are there in the first place because regulators, stakeholders and the general public have a hard time understanding what Bitcoin really is. This made it difficult for all parties involved to navigate the waters, adding that some countries, especially the US, have an unfriendly attitude towards digital currencies which has made it more challenging for networks and exchanges to operate, with or without regulation.

“As far as I can see, regulation has not made stablecoins better,” Buenaventura concluded.

Nunez countered this argument, saying that the collapse of the industry is a clear sign of the need to regulate the sector, but pointed out that legislation should not only be focused on exchanges, but also on entities that support stablecoins, including banking institutions.

“Crypto is inevitable, so they should help these banks come up with standards,” he noted, adding that public bodies should leverage centralized networks to help educated users navigate the industry. He also highlighted the need to find a balance between centralization and decentralization.

Gonzales supported this view, stressing that regulatory bodies help protect society and their economy from risks associated with asset depegging.

Which Industry Will Incentivize “Crypto” Adoption?

The Philippines, apart from being known for its rich agricultural sector, is a big user of micropayments. But will the payments industry be the main driver of digital currency adoption in the country? Buenaventura and Chong said otherwise.

While the Philippines’ gross domestic product (GDP) is supported by remittances from overseas Filipino workers (OFWs), blockchain adoption is already gaining traction in the industry most often overlooked by many – gaming.

Buenaventura said the payments industry is plagued with years-long issues that have yet to be addressed, making it difficult for the sector to be at the forefront of blockchain and digital currency adoption. He emphasized the need to have an avenue to help the public know more about these technologies, pointing to gaming as the best industry to support this goal, a point supported by Chong.

“Payments, I think, is still the most important thing, but that doesn’t mean that this other side of the industries isn’t also important; they are just less important. It’s just that they help people on board,” said Buenaventura.

Nunez, meanwhile, said he is bearish on the payments industry becoming the leading sector to adopt digital currencies, adding that if he were to drive adoption in the country, focusing on leveraging the technology for money transfers would be a priority as it is here the Philippines gets most of its GDP. He also explained that remittances are technically part of the payments industry, but intentionally set themselves apart for this issue alone because of the huge market.

See: Philippines needs to create more blockchain use cases

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