In a significant discussion at Consensus Hong Kong 2026, prominent figures in the cryptocurrency space emphasized that the future of Bitcoin is not just about its role as “digital gold,” but about transforming it into a more productive asset. Executives from Citrea, Rootstock Labs, and BlockSpaceForce articulated a vision where Bitcoin’s scaling solutions primarily focus on enhancing its functionality as a programmable financial base layer.
Gabe Parker, head of business development at Citrea, highlighted that Bitcoin’s base layer isn’t inherently designed for complex smart contracts. “Most of it — the mission — is just making Bitcoin a productive asset,” he stated, underscoring the importance of integrating elements like decentralized finance (DeFi), lending, and borrowing into the Bitcoin ecosystem. Parker’s perspective shifts the discussion towards programmability rather than merely increasing throughput.
Diego Gutierrez Zaldivar, CEO of Rootstock Labs, added a critical analysis of the conventional terminology around Bitcoin’s layers. He contended that the industry overly fixates on “layer two” categorization. He proposed a more nuanced understanding, defining layer one as a store of value, layer two as an economic coordination layer, and layer three as a means for enhanced payment scalability. This conceptual framework aims to facilitate a richer dialogue around Bitcoin’s evolving utility, suggesting a shift towards discussing networks focused on economic coordination.
The panelists noted a rising institutional interest in bitcoin-backed lending and yield-generation strategies, drawing attention to the cryptocurrency’s emergence as a significant macro-financial asset. Charles Chong of BlockSpaceForce remarked that the next major advancement will involve constructing a comprehensive financial ecosystem around Bitcoin, reinforcing its status in the broader financial landscape.
However, the conversation also pivoted towards critical trust issues related to Bitcoin’s financial infrastructure. Parker expressed concerns about the reliance on centralized custodians for wrapped Bitcoin products on Ethereum. He criticized the security model underpinning such mechanisms, pointing out that “a three-to-five multisig” does not scale appropriately for significant asset management.
Despite the growing interest, many institutions remain cautious. Chong noted the dichotomy faced by institutions choosing between working with regulated counterparts, which offers a sense of legal recourse, versus engaging in a decentralized, permissionless environment where trust is placed in protocol governance and smart contract risk.
Gutierrez Zaldivar suggested that hybrid compliance models might serve as a temporary solution, but he emphasized that for Bitcoin to achieve meaningful relevance globally, it must evolve beyond being a mere store of value.
Ultimately, for advocates of Bitcoin’s scalability and utility, the potential transformation lies in the hope that even a small fraction of Bitcoin entering decentralized finance could significantly impact both the network and global financial markets in the coming years.
