Bitcoin (BTC) will benefit from central banks around the globe developing their own cryptocurrencies, according to the founder of the world's largest digital asset management company.
Barry Silbert – founder and CEO of digital asset management unit Grayscale Investments and blockchain venture capital firm Digital Money Group (DCG), once again expressed an optimistic view on Bitcoin during the home call. Latest Grayscale investment on 12/02.
In a call called “The State of Digital Currency,” Silbert talked about a number of important issues related to digital assets, including Bitcoin's role in the generational transition. wealth, stablecoins, decentralized finance, and central bank digital currencies (CBDC).
What is a central bank or CBDC digital currency?
CBDC are digital currencies issued and controlled by government agencies. In contrast to cryptocurrencies like Bitcoin, CBDC is clearly representing fiat currency in digital form. So far, no country in the world has launched a CBDC, a number of governments have begun to strengthen research and development of such projects, with China soon launching CBDC testing. reality first.
According to a new survey by the International Payment Bank, at least 10% of the central bank will be able to issue CBDC publicly in the short term.
CBDC will eventually bring more benefits to non-bank central cryptocurrencies like Bitcoin
Silbert, who claimed to first buy Bitcoin in 2012 or about three years after Bitcoin's first block was launched on the blockchain, argues that central banks' development of digital currencies is supported. because their fiat currency can bring more energy to Bitcoin by paving the way for institutional interest. According to the CEO of Grayscale, Bitcoin and other non-central bank cryptocurrencies will eventually benefit from the same infrastructure used by the widespread adoption of CBDC:
“So at a future time, we may have 80 different CBDC. And if that happens, it will trigger a huge investment in financial system operators – where basically every financial institution will need to be able to store and trade CBDCs. safely and guess, if they actually built that infrastructure, then the same infrastructure could be used for non-central bank digital currencies like Bitcoin. ”
In addition, Silbert expressed confidence that eventually central banks will require users to use and participate in existing financial systems and will not limit the supply of digital currencies. “Central banks like to print money,” Silbert emphasized to point out Bitcoin's limited supply feature. Predicting that CBDC “is not something in 2020” that will be applied for years or decades, Silbert described that CBDCs are important because they contribute to the future value proposition of digital money.
Founded in 2013, Grayscale Investments is recognized as the world's largest digital asset management unit by cryptocurrency exchange and wallet service Coinbase. In January 2020, the Grayscale report described 2019 as a company record year for cumulative investments. As Toiyeubitcoin reported, the company's total investment surpassed $ 1 billion in 2019, while its assets under management (AUM) exceeded $ 2.
According to the latest investor call, Grayscale has $ 3.1 billion AUM to date. This news comes as Bitcoin broke the $ 10,000 threshold for the second time in 2020 to trade at more than $ 10,200 at the time of writing.
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According to CoinTelegraph
Translated by ToiYeuBitcoin
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