Issuance of Central Banks’ Cryptocurrencies Positive For Bitcoin; Expert

Issuance of Central Banks’ Cryptocurrencies Positive For Bitcoin; Expert

Bitcoin (BTC) is expected to benefit from the issuance of cryptocurrencies by global central banks, claims the founder at the world’s biggest digital asset manager.

In the new Grayscale investor call, Barry Silbert, Founder and CEO of digital currency asset manager Grayscale Investments and blockchain venture capital firm Digital Currency Group (DCG), has once again reiterated his bullish stance on Bitcoin.

Silbert spoke, during the call titled “The State of Digital Currencies,” about a number of significant issues related to digital assets including the role of Bitcoin in the generational shift in wealth, stablecoins, decentralized finance and digital currencies of the central bank (CBDC).

Central Bank Digital Currencies (CBDCs)

CBDCs are virtual currencies which a federal regulator issues and regulates. CBDCs obviously reflect fiat money in digital form, unlike other cryptocurrencies such as Bitcoin.

While no global authority has so far launched a CBDC, a number of governments have been gradually pursuing and building such ventures, with China reportedly planning to issue its CBDC’s first real-world test soon.

It is worth mentioning that, at least 10% of central banks are expected to issue a CBDC for the general public very soon, a new survey by the Bank of International Settlements revealed.

More Power to Non-Central Bank Cryptos Like Bitcoin

Silbert sees that central banks are paving the way for institutional interest by creating their own fiat currency-backed digital currencies which could provide more power to Bitcoin.

Bitcoin and other non-central bank cryptocurrencies will eventually benefit from the same infrastructure used by CBDC’s widespread adoption, Grayscale CEO said:

“So at one point of the future we might have 80 different CBDCs. And if that happens, it would trigger a tremendous amount of investment in operators of financial systems where essentially every financial institution would then have to be able to safely store and transact CBDCs and, guess what, if they actually build that infrastructure, that same infrastructure could be used for non-central bank digital currencies like Bitcoin.”

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