Daniel Polotsky is founder and chairman of CoinFlip, a Chicago-based financial services provider focused on cryptocurrency that recently announced plans to expand its over-the-counter cryptocurrency trading desk into six new states, including Rhode Island.
Polotsky spoke with PBN about the company’s expansion and the growing industry interest in cryptocurrency and digital assets.
PBN: What motivated the decision to expand the company’s Trading Desk, and specifically why into Rhode Island?
POLOTSKY: CoinFlip’s goal is to create the most accessible platform for using, trading and investing cryptocurrency – and making those services available at every corner of the country. Recently, the Rhode Island Economic Growth Blockchain Act was introduced, which focuses on invigorating the economy by creating a hub for blockchain industries in the state.
In addition to making our services more widely available, we see Rhode Island as a great place for our business and hope to see customer engagement grow as we expand our services to the area. We are impressed with Rhode Island’s forward thinking when it comes to crypto adoption, and we want to be top of mind for consumers in the area who are curious about crypto or want to expand their current portfolios.
PBN: How does demand for cryptocurrency trading and existing offerings in Rhode Island compare with other states?
POLOTSKY: Currently, CoinFlip’s cryptocurrency ATMs in Rhode Island transact similarly to the rest of the states in the U.S. That said, our newer presence in the state means machine use will likely see an increase. With the addition of our over-the-counter Trade Desk in the state, we expect to see a bigger surge of cryptocurrency adoption.
PBN: What Rhode Island businesses will CoinFlip be partnering with and when will that begin?
POLOTSKY: CoinFlip currently operates 13 cryptocurrency ATMs in Rhode Island across eight different retailers. We are eager to contribute to the state’s economic growth and help bring more tech of tomorrow into the communities.
Rhode Island’s new act will help the state become a haven for blockchain innovators. The desire to invigorate and diversify Rhode Island’s economy with fintech and blockchain enterprises aligns with our mission to further financial inclusivity for all. We hope to partner with companies who share the same values.
PBN: How do you expect cryptocurrency trading and investments to grow and evolve in the coming years? What challenges accompany that?
POLOTSKY: Cryptocurrency trading and investments are poised to grow exponentially; each day we see more institutions from banks to retail establishments introducing crypto to their books. As that grows on the corporate side, interest in the consumer side will also grow as people holding assets will realize the scope of how they can apply their digital currencies to the real world.
CoinFlip is focused on bringing the Trade Desk account management features to the entire country so all individuals can utilize the support and knowledge to make the right decisions for their future.
PBN: Financial and investment experts, including those with the Federal Reserve, seem wary about the unregulated and volatile nature of cryptocurrency as an investment or monetary token. What would you say in response to those concerns?
POLOTSKY: Cryptocurrency is a new frontier – and there are risks with any investment. However, we continue to see more traditional institutions begin to incorporate crypto and blockchain tech into their businesses. For example, Walmart now traces over 25 products from five different suppliers using IBM Blockchain, De Beers Group used the tech to track 100 high-value diamonds and Maersk developed the TradeLens blockchain supply chain platform with IBM to help track cargo ships and containers.
Time has shown the value and increasing desire for companies to have that transparency in their data. The combination of practical application and increase in adoption strengthens confidence in the market and the future of what the tech can do.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
