Despite new developments in the digital asset space, such as the launch of spot Bitcoin exchange-traded funds (ETFs), Ledger CEO Pascal Gauthier believes that self-custody is still the point of cryptocurrencies.
At the Blockchain Life event in Dubai, Gauthier told Cointelegraph in an interview that although exchanges and ETFs have their own roles within the space, self-custody is still the whole point of cryptocurrencies. He said:
“If not self-custody and why crypto? There is no crypto without self-custody, so it’s a bit of a moot point if all coins go to an ETF or an exchange. There is no crypto.”
Gauthier also highlighted that Bitcoin’s white paper highlighted the asset as a peer-to-peer payment system. “It’s peer-to-peer; it’s not a bank-to-bank. It’s to remove the middleman,” the executive argued.
Gauthier on the stage at the Blockchain Life event in Dubai Source: Cointelegraph
Ledger CEO on why hardware wallets need to evolve
Apart from self-custody, the Ledger CEO also spoke about the need for hardware wallets to evolve to keep up with the new developments in the space.
Gauthier told Cointelegraph that, similar to mobile phones, hardware wallets would continue evolving. He explained:
“The reason why it has to evolve is because crypto never sleeps. There are layer-2s, and an application layer is now being built on top of public blockchains. And so, your hardware wallet will have to be more and more sophisticated.”
Gauthier highlighted that Ledger is also moving into securing not just cryptocurrencies but also internet life. “Your ledger will be your security device to protect your secrets, whether they are cryptocurrency secrets or whether they are just online internet secrets,” he explained.
On July 26, Ledger released its new Ledger Flex product. At the time, Gauthier said these products have the “only secure touchscreens in the world.”
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Why the space needs to move away from blind signing
On Aug. 21, a crypto whale lost $55 million after signing a transaction that changed the ownership of his stablecoins at the decentralized finance (DeFi) protocol Maker. The signed transaction enabled malicious actors to gain access to the funds.
Incidents like this highlight the need for better security within the crypto ecosystem. According to Gauthier, Ledger advocates for clear signing and urges the community to avoid signing transactions blindly.
He explained why Ledger’s new products have bigger screens:
“Clear signing is a big initiative. This is why those products, Ledger Stax and Ledger Flex, have bigger screens; you need to see what you sign on a secure screen.”
Gauthier believes that the industry should move away from blind signing and said that they’ve partnered with entities to promote and educate the space about clear signing.
“Blind signing is something that everybody does in the industry, but it’s crazy because it’s like signing blank checks online,” he added.
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