Getting To The Point –
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How Bitcoin Benefits from Central Bank Digital Currencies, According to Barry Silbert
On Feb. 12, Barry Silbert, the founder and CEO of Digital Currency Group (DCG) and Grayscale Investments, spoke about his positive perspective on Bitcoin in a Grayscale investor call. He addressed various matters related to digital assets, such as how Bitcoin influences the movement of wealth among generations, decentralized finance, central bank digital currencies (CBDCs) and stablecoins.
CBDCs are virtual currencies that are issued and controlled by a federal regulator. Unlike cryptocurrencies like Bitcoin, CBDCs represent fiat money in the digital form. No CBDC has been launched by any global jurisdiction yet, but such projects have been developed and explored by many governments. While China is reportedly getting ready to test its CBDC soon, at least 10% of central banks are expected to issue a CBDC for the general public in the near future.
Barry Silbert millionaire, who claims to have bought his first Bitcoin in 2012, three years after the creation of the first block on the Bitcoin blockchain, argued that central banks that develop their own digital currencies might be giving more power to Bitcoin by creating the infrastructure for institutional interest. He believes that Bitcoin and other non-central bank cryptocurrencies could benefit from the same infrastructure that is used by the widespread adoption of CBDCs: “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.” He also stated that he was sure that central banks will require users to use and engage with the existing financial systems and will not restrict the supply of the digital currency. “Central banks love to print money,” Silbert noted, pointing out Bitcoin’s limited supply feature.
Silbert is one of the most influential figures in the cryptocurrency industry, since he leads two major companies that are involved in various aspects of digital assets. As of Feb. 12, Grayscale Investments is the world’s largest digital asset manager, with more than $40 billion in assets under management. Digital Currency Group is a venture capital firm that invests in various crypto-related projects, such as Gensis Trading, Foundry and CoinDesk.
Silbert has long been vocal about his bullish views on Bitcoin and other cryptocurrencies. Some projects, such as Ripple (XRP), which he regards as centralized and not genuine cryptocurrencies, have also been criticized by him. He has also predicted that most altcoins will experience bankruptcy in the long run, while Bitcoin will continue to dominate the market.
In conclusion, Barry Silbert is a prominent figure in the cryptocurrency industry who believes that central bank digital currencies are good for Bitcoin. He contends that CBDCs will create the infrastructure for institutional interest in non-central bank cryptocurrencies like Bitcoin. He also emphasizes that Bitcoin has a limited supply feature that makes it superior to fiat money. He leads two major companies that are involved in various aspects of digital assets: Digital Currency Group and Grayscale Investments.