Paxos CEO: Cryptocurrencies Are Replatforming Financial System, Corrections Are Healthy

The cryptocurrency movement is about replatforming the financial system, co-founder and CEO of Paxos Charles Cascarilla said Tuesday on CNBC's "Squawk On The Street."

What Happened: More than 90% of China's Bitcoin BTC/USD mining capacity was reportedly shut down after authorities ordered a halt to Bitcoin mining in Sichuan. Bitcoin continues to trend lower as the crackdown on mining intensifies in China.

Related Link: China's Cryptocurrency Mining Crackdown Intensifies, Spreads To Sichuan

The recent crackdown on crypto mining in China will likely cause short-term volatility and impact the near-term adoption of cryptocurrencies, but it will actually put cryptocurrency in a stronger place fundamentally, Cascarilla told CNBC.

Nothing goes up in a straight line, he said, adding that the recent events are positive for crypto longer-term. 

Cryptocurrency mining represents freedom and open access while China focuses on maintaining control, the CEO said. 

Mining can easily be done in different locations and it will, he said.

Cascarilla's Crypto Outlook: Transformative technologies don't immediately shift to their end states; rather, the transformation happens in stages, Cascarilla said. 

In 18 months, Cascarilla told CNBC he expects that nearly everyone will have access to crypto through digital wallets. 

Instead of focusing on the short-term ups and downs, investors should look out five to 10 years, he said. 

The crypto corrections are healthy for the overall cryptocurrency markets, Cascarilla said. 

See Also: Why Is Bitcoin Tanking Today?

Price Action: Bitcoin is up 4.9% year-to-date.

At last check Tuesday, Bitcoin was up 1.92% at $33,104.41. 

Image by Pete Linforth from Pixabay.