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Central Bank Digital Currencies Are Good for Bitcoin, Barry Silbert Says
In a recent Grayscale investor call on Feb. 12, Barry Silbert, the CEO and founder of Digital Currency Group (DCG) and Grayscale Investments, shared his optimistic view on Bitcoin. 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. So far, no global jurisdiction has launched a CBDC, but many governments have been exploring and developing such projects. At least 10% of central banks are anticipated to issue a CBDC for the general public soon, while China is reportedly about to test its CBDC.
He claims to have acquired his first Bitcoin in 2012, three years after the creation of the first block on the Bitcoin blockchain. Silbert stated that by developing the infrastructure for institutional interest, central banks that make their own digital currencies might be strengthening Bitcoin. He suggests that Bitcoin and other non-central bank cryptocurrencies could gain from the same infrastructure that is used by the widespread adoption of CBDCs: He remarked: “We could have 80 different CBDCs in the future. And if that happens, it would stimulate a massive amount of investment in operators of financial systems where essentially every financial institution would then have to be capable of safely storing and transacting CBDCs and, guess what, if they actually create that infrastructure, that same infrastructure could be applied for non-central bank digital currencies like Bitcoin.” He also expressed confidence that central banks will require users to use and engage with the existing financial systems and will not limit 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, as 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 CoinDesk, Foundry and Genesis Trading.
Silbert has been vocal about his bullish views on Bitcoin and other cryptocurrencies for a long time. Some projects, such as Ripple (XRP), which he regards as centralized and not genuine cryptocurrencies, have also been criticized by him. He has also projected that most altcoins will go bankrupt in the long run, while Bitcoin will continue to dominate the market.
To conclude, Barry Silbert is a prominent figure in the cryptocurrency industry who suggests that central bank digital currencies are positive for Bitcoin. He argues that CBDCs will create the infrastructure for institutional interest in non-central bank cryptocurrencies like Bitcoin. He also points out 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: Grayscale Investments and Digital Currency Group.