web3 | Cryptobeyer

Why Trust Matters More than Ever

Unless you have lived happily on a deserted beach, you may have noticed the rising interest in cryptocurrencies in the media and among the general public. Aside from the increased Bitcoin price, political interest in cryptocurrencies in the US, and promising signs of clearer regulation, trust is the most important factor to consider in the cryptocurrency adoption discussion. Trust—or the lack of it—will show the way forward.

In Scandinavia, this skepticism is particularly pronounced. Studies show that only 7% of Swedes and Danes, and 9% of Norwegians, own cryptocurrencies—less than half the global average. A staggering 80% of people in these nations say they will never invest in crypto. This sentiment mirrors a broader global hesitation: people are intrigued by the idea of cryptocurrency, but many are unwilling to leap without assurances that their money is secure.

Trust is the foundation of financial systems, and for cryptocurrencies, it’s both their greatest promise and their biggest challenge. Without central banks or governments backing them, trust in crypto depends on the technology itself—its transparency, security, and the people behind it.

For Scandinavians, who place a high value on stability and transparency, this decentralized model can seem more risky than revolutionary. Their traditional financial institutions, rooted in decades of consistent performance and strong oversight, provide a sense of security that cryptocurrencies often lack. It is also interesting to note that most people outside of the crypto bubble will not trust Bitcoin unless it gets less volatile. While volatility is inconceivable for trust in the public, it equals opportunity for long-term investing for many. Trust seems to depend on a person's time horizon.

Tradition versus modernity is a trust game, particularly in financial markets. El Salvador’s adoption of Bitcoin as legal tender illustrates this. While some see it as a bold step toward financial inclusion, others view it as reckless. Scandinavians, with their pragmatic ethos, are more likely to ask: “Why fix what isn’t broken?”

The media plays a critical role in shaping how people view cryptocurrencies. For years, headlines have painted Bitcoin as a speculative gamble or a tool for criminals. In Sweden, this narrative continues. The head of the Swedish National Bank, Mr. Thedéen, says, “There is every reason to be skeptical of cryptocurrencies,” whereas the next US president, Trump, is considering adding Bitcoin to the US national reserve. I wonder if skepticism against crypto is only enhanced in Sweden, as people may relate crypto with Trump. Yes, most Swedes are critical of Trump.

Globally, however, the narrative is evolving. Media outlets now highlight crypto’s potential to empower people in developing nations. Countries like Turkey, Vietnam, and Nigeria lead the world in crypto adoption, where it provides an alternative to unstable currencies and limited banking access. This stands in stark contrast to Scandinavia, where robust financial systems make such alternatives unnecessary.

For cryptocurrencies to gain broader acceptance, I believe trust must be earned by prioritizing user-friendly platforms that are as secure as traditional banking apps. Scandinavian skepticism stems, in part, from fears of hacks and scams—stories that dominate headlines. I believe this is similar in other nations as well.

I know regulatory clarity is essential. The European Union’s Markets in Crypto-Assets (MiCA) framework, set to go live in late 2024, could make a difference. By setting clear rules and improving transparency, MiCA could reduce fear and encourage trust—not just in Scandinavia but across Europe.

Yes, people need to understand not just how crypto works, but why it’s valuable. In Scandinavia, where people are used to clear explanations and reliable systems, demystifying cryptocurrency is critical.

Cryptocurrency is at a turning point. On one side lies the promise of a revolutionary financial system; on the other, skepticism rooted in mistrust and confusion. Scandinavia’s cautious approach is a reminder that even the most innovative technologies must prove themselves to a public that values safety and transparency.

Let’s remember that trust isn’t just a nice-to-have; it’s the foundation of cryptocurrency’s future. If the industry can earn it, the potential for a more inclusive, innovative financial system is enormous. But if trust remains elusive, the digital currency revolution may falter. All in all, I would say it’s about earning the confidence of those who value tradition.

Launching the Proof of Good Framework: Guiding Web3 Toward a Better Future

Web3 founders are increasingly under pressure to consider the societal impact of their projects. While the decentralized web holds the promise of an open, accessible digital world where communities have more control and power is more fairly distributed, Web3’s rapid growth has also revealed serious pitfalls. Investors, communities, and organizations are closely examining the social effects of these technologies, expecting more from those who develop them.

Without clear guidance, founders often find themselves wondering: how can they create a genuinely positive impact without losing sight of their vision or overburdening their teams? The need for a roadmap that balances innovation with social responsibility has never been clearer.

This is why I created the Proof of Good Framework, a flexible, step-by-step guide designed to help Web3 founders prioritize public good while still building profitable, sustainable projects. The framework isn’t just a set of vague principles; it’s an adaptable yet impactful tool, crafted to meet the demands and limitations of fast-moving start-ups. Its accessibility means that founders, whether seasoned or new, can navigate it without needing a team of specialists. With the rising pressure on projects to be “good citizens” of the digital world, this framework is as timely as it is necessary.

It is truly inspiring to see the potential of Web3 unfolding. However, it is also clear that founders are facing a dual challenge: creating cutting-edge products that deliver on their promises and ensuring these products don’t replicate the very problems Web3 set out to solve. Many early projects, despite noble intentions, have unintentionally reinforced the inequalities they aimed to break down. Countless stories exist of projects that claimed to democratize access, only to end up benefiting those with deep technical knowledge or financial resources.

This is where the Proof of Good Framework makes a difference. Designed with these real challenges in mind, it provides essential guidance for founders who want to address critical issues like equity, transparency, and sustainability without losing momentum on their core goals. By framing public good as a core part of project success, the framework helps founders ensure their ventures are not just another tech trend but a lasting contribution to a better digital future.

One of the framework’s greatest strengths is its adaptability. We need to be realistic. Many start-ups operate on tight budgets and limited resources, and the Proof of Good Framework was built with these constraints in mind. Founders can choose to use it as a complete blueprint for embedding societal values into every layer of their project or adopt it gradually, using specific pillars as conversation starters that evolve over time.

At its core, the framework revolves around 11 pillars, each a key consideration that can make or break the societal value of a Web3 project. These pillars include Equity and Inclusivity, Privacy and Data Security, Environmental Sustainability, Transparent Governance, and Community Engagement. Each one addresses an area where Web3 projects have the potential to fall short or to make a real impact.

Not every project will tackle all 11 pillars from day one. Some may focus on transparency in governance or privacy first, while others might prioritize environmental impact or equity. The beauty of the Proof of Good Framework is that it provides a roadmap without being rigid. Founders can address the pillars that resonate most with their mission and gradually integrate additional areas. This flexibility allows even resource-strapped start-ups to implement positive change without feeling overwhelmed.

Moreover, for those seeking to make a strong impression on investors, partners, and community members, the framework provides an attractive proof point. By openly sharing how they’re aligning with these principles, start-ups can build branding, credibility and trust. In a space where reputations are built (and lost) quickly, that trust can be invaluable. Furthermore, it’s not just a tool for developers or executives; it’s accessible for every team member who wants to understand how their work contributes to a larger societal mission.

All in all, with the Proof of Good Framework, founders can ensure that as they innovate, they’re also contributing to the broader good. It’s more than a set of principles, it’s a call to action for all of Web3 to step up and prove that technology can, and should, be a force for positive societal transformation. Let’s get it right.