Bitcoin Governance Gap: Challenges in Institutional Adoption
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Governance Gap Emergence: While Bitcoin solves the consensus issue, it lacks a governance framework, leading institutions to face risks of insufficient transparency when adopting it, which impacts their asset control capabilities.
- Need for Trust Reconstruction: Institutions rely on custodians to fill the governance gap; however, while custodians provide policy documents and insurance, their governance processes remain opaque, increasing potential compliance risks.
- Lack of Governance Structure: The absence of verifiable governance layers prevents institutions from effectively demonstrating control over Bitcoin assets, subsequently affecting risk pricing and the feasibility of insurance, hindering broader acceptance of Bitcoin.
- Future Depends on Reconciliation: The future of Bitcoin hinges on its ability to integrate with traditional governance structures, creating an authority that is decentralized yet comprehensible, to meet institutional demands for transparency and control.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
