Central Bank Digital Currencies Are Perfect for Bitcoin, Barry Silbert Says

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

Barry Silbert, founder, and CEO of digital currency asset manager Grayscale Investments and blockchain venture capital firm Digital Currency Group (DCG) reiterated its positive approach to Bitcoin in the new Grayscale Investor Call on Feb. 12.

During the call titled The State of Digital Currencies, Silbert spoke about a number of important 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).

What are digital currencies like CBDCs in the central bank?

CBDCs are virtual currencies that federal regulatory issues and regulates. CBDCs obviously reflect fiat money in digital form as opposed to cryptocurrencies such as Bitcoin. While a CBDC has so far not been initiated by any global authority, a number of governments have been gradually pursuing and developing such ventures, with China reportedly planning to issue the CBDC’s first real-world test soon.

According to a new Bank of International Settlements report, in the short term. At least 10% of central banks are likely to issue a CBDC to the general public.

Eventually, CBDCs could give more power to non-central bank cryptos like Bitcoin 

Silbert, who claims to have purchased his first Bitcoin back in 2012, just around three years after the development of the very first block on the Bitcoin blockchain. Argued that central banks that are creating their own fiat currency-sized digital currencies might give Bitcoin more power by paving the way for institutional interest.

Bitcoin and other non-central bank cryptocurrencies will ultimately benefit from the same infrastructure used by the widespread adoption of CBDC, according to the Grayscale CEO.

So, they might have 80 separate CBDCs at one point in the future. And if that were to happen, it would cause a huge amount of investment in financial system operators. Because, in turn, any financial institution would then have to be able to safely store and transact CBDCs. If they actually build the infrastructure, that same infrastructure could be used for digital curing. By non-central bank digital currencies like Bitcoin.

Silbert expressed confidence

In addition, Silbert expressed confidence that central banks would ultimately allow users to use it. And connect with existing financial structures, and will not limit the digital currency’s availability. “Central banks love to print money,” Silbert noted to point out the limited supply functionality of Bitcoin. Predicting that CBDCs are “not something of 2020” but would like to be implemented in many years or decades. Silbert outlined that CBDCs are important because they contribute to the future value proposition of digital money.

Grayscale Investments was established in 2013. Recognized by major crypto exchange and wallet provider Coinbase as the world’s largest digital currency asset manager. Grayscale announced in January 2020 that 2019 had become a record-breaking year for the company in terms of total investment. Total investment by the company, as announced, exceeded the $1 billion mark in 2019. while assets under management (AUM) reached $2 billion.

Until now, Grayscale has $3.1 billion AUM, according to the new investor call. The news comes in the wake of Bitcoin smashing the $10,000 mark to trade at more than $10,200 at press time for the second time in 2020.

Source: cointelegraph.com

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