CEO of digital asset giant Grayscale Investments central bank digital currencyHe thinks that Bitcoin (CBDC) can help further adoption and growth of Bitcoin (BTC).
Michael Sonnenshein, who participated in a new interview on CNBC, thinks that a federally-backed “digital dollar” is a step that could help investors and businesses become more interested in cryptocurrencies.
The CEO referred to PayPal, which began to support the buying and selling of cryptocurrencies and noted:
“We believe the advent of the digital dollar project or a federally backed digital asset could have an impact for investors to think about decentralized applications. For this reason, PayPal and similar companies, Bitcoin (BTC) and other decentralized protocols already in its business models. We believe shedding light on the use of digital assets is a factor that brings greater comfort to investors.”
Sonnenstein stated that he does not agree with the idea that a CBDC to be distributed would leave companies like PayPal out of the game and displace crypto assets.
“I think (a CBDC) will not exclude these entities and companies from the game, but rather will shed light on the use of this technology. In addition, looking at the fundamentals of blockchain technology and shedding light on what is the difference between federal or fiat-backed assets and decentralized assets like Bitcoin could almost create an ‘enable factor’.
We must bear in mind that these ideas are influencing investors and users more as we see the values of this ecosystem are more related to creating a more inclusive and equitable financial system and therefore its adoption in our environment.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.