As the Federal Reserve prepares to publish an article examining the US central bank cryptocurrency (CBDC), popularly known as Fedcoin, investors are speculating on when it will be released and what its release will mean for Bitcoin and the rest. Kevin O’Leary also said that the use of Fedcoin is unlikely. According to the Shark Tank star, it is more promising for someone from the private sector to take on this burden…
Kevin O’Leary: Stablecoins could meet all the Fed’s needs
Kevin O’Leary, chairman of O’Shares ETFs and star of the reality TV show Shark Tank, says a Fedcoin is unlikely to materialize in the purest sense of the word. Speaking to Kitco News editor-in-chief Michelle Makori, O’Leary said that stablecoins pegged to the US dollar or any other anchor fiat currency can work in the same way as a central bank cryptocurrency and meet all the government’s needs. What needs to be done, according to O’Leary, is regulating stablecoin issuers like banks. But he thinks the Fed is not ready for this:
I think you and I will still be talking about this 20 years from now. What I think is more likely to happen is that they regulate stablecoin issuers as banks. This would be a good result. I agree with that too. The idea of the Fed issuing their own stablecoin, I don’t think they’re actually ready to do that, they don’t have the infrastructure yet, doesn’t mean they can’t.
O’Leary added that innovations in capital markets must come from the private sector, not from the Fed, a regulator:
The amount of innovation and deals I’m seeing right now, all the ideas coming out of decentralized finance, I never expect governments to deliver. I’m waiting for someone to sit in the basement and imagine this.
O’Leary prefers layer 2 projects over Bitcoin (BTC)!
O’Leary’s comments came while the Fed was working with crypto experts, including researchers from the Massachusetts Institute of Technology, to publish a technical paper on how Fedcoin could work. In an article in the Wall Street Journal published earlier this week, he says:
The Fed plans to start the scrutiny by issuing an article analyzing the issue and soliciting public comment, but it is unlikely to contain definitive policy advice.
Previously a skeptic and critic of cryptocurrencies, O’Leary has since changed his stance and invested in Bitcoin, altcoins, and DeFi protocols, as well as crypto-related companies like WonderFi, Immutable Holdings, and Sam Bankman-Fried’s FTX. diversified. He now sees cryptocurrencies as an essential part of his portfolio and goes so far as to say that for an investor they are just as important as an industry of the S&P 500. O’Leary had this to say about it:
I currently see cryptocurrencies and decentralized finance called DeFi as the 12th sector of the S&P 500. No one has decided this yet, but I do it in terms of how I manage my own portfolio of businesses.
Meanwhile, besides Bitcoin, O’Leary is also investing in Ethereum, Solana, and “second layer Blockchain of all kinds.”
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