Chase Ergen is excited about the current state of decentralized finance and looks forward to even better things to come. An entrepreneur and strategic advisor, Ergen has two decades of experience in satellite and telecommunications, serves on the board of DeFi Technologies, and is the executive director of Make America Wealthy Again (MAWA), a super PAC advocating for innovation-focused policy and financial inclusion.
Ergen’s roots lie in telecom-based encryption, so it’s only natural that he quickly gravitated to Bitcoin. He became an early miner and now serves on the board of DeFi Technologies, which bridges the gap between traditional finance (TradFi) and decentralized finance (DeFi) by providing regulated and secure access to digital assets.
“It’s pretty clear now that Bitcoin is going to become nation-state digital gold and all these other protocols are going to support it,” Ergen said. “I was a firm believer in the technology. I didn’t know that it might happen so quickly, but I was a firm believer in the concept that the Internet is growing, and it’s going to need money.”
He sees plenty of opportunities in the United States. Governments worldwide have shifted from attempting to ban crypto to enacting laws to regulate it. With the Trump administration’s warm embrace of crypto, Ergen believes it’s headed for mainstream adoption.
“We’ve reached that tipping point where governments say they’d better create laws around this and just not let them do it,” Ergen said. “Look at institutions like BlackRock; within time, they’ve acquired (3%) of Bitcoin. You see things like micro strategies.”
“It’s going to go mainstream, it’s got the right, and it has the policy. Now there’s direction. The US administration aims to establish a crypto AI Council, bringing together the leaders of the industry. Prior to that, they all had problems with the SEC or DOJ.”
What regulatory clarity brings to DeFi
Regulatory clarity provides institutions with the green light to develop crypto-based products that mirror those available in TradFi. Just as countries print physical money, they can now flood the world with digital dollars.
Ergen sees huge demand for digital currency. Consider Tether, which he likened to a treasury holding company that earns revenue from the issuing and redeeming of USDT. Now, folks anywhere in the world can access an Ethereum-based dollar that is free to send, with the issuer earning interest.
“Banks are going to start to figure that out,” Ergen said. “You’re going to see Tether reach a trillion, but I think you’ll see a JP, Morgan quickly catch up, like BlackRock has done with its Bitcoin accumulation. You’ll see Tether grow, but the whole pie will grow way faster. Once you get the real world assets, the stocks, bonds, equities, and property, that’s the $500 trillion market that’s going to come onto digital dollars.”
The Trump Administration’s crypto embrace is just the nudge the industry needs. Ergen said many crypto founders are from the United States, as are the technologies. Approval brings certainty, and that opens the door to the real money.
When those institutions cross the threshold, they’ll find a welcoming environment on the other side.
“The interesting thing about Bitcoin is it can absorb almost an unlimited amount of money,” Ergen said. “One Satoshi is 1/100,000,000th of a Bitcoin. So, you know, there are 100 million times 21 million. That is hundreds of trillions of potential Satoshis. The other side of it is that they’re going to keep printing dollars, so those people who wanted deflationary, secure storage of value, there’s nothing better than gold and Bitcoin. And for actual financial trading of services and international trade, it’s, it’s, it’s going to stay in dollars. I think they did that because they don’t want to see another currency from BRICs or wherever come up.”
Expect 5G and satellites to play essential roles in DeFi. Give someone a credit card and internet connection, and their access to financial services grows exponentially. Their phone becomes a financial centre. They don’t have to be in a building connected to Starlink.
Ergen’s MAWA Super PAC engages the youth
Ergen’s work with Make America Wealthy Again (MAWA) is designed to give the young generations access to a financial system that has left them behind. Gig workers, influencers, and gamers are making up a larger percentage of the economy, and that system needs to recognize them.
“That’s where people will be,” Ergen said. “They don’t participate in politics – the turnout in midterms was around 30%. Then look at Congress, who’s all in wheelchairs, and that’s a big gap.”
MAWA advocates for a 0% capital gains tax on digital assets up to $1 million. Ergen said it would help young entrepreneurs and gig workers get a head start. He likens it to the G.I. Bill that allowed many to buy homes nearly a century ago.
Keep that human potential and future taxes in the United States, or see it flee to Dubai and elsewhere. MAWA is Ergen’s way of giving this generation a say in their future.
Talk about central bank digital currencies has died down, and for good reason – Ergen says they aren’t needed. The public won’t agree to an even more centralized system.
“If you look at the system, it’s already pretty centralized,” Ergen said. “About 90% of international trade is in dollars. I don’t think they need another layer of that.”