Looking On The Bright Side of
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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 covered different issues related to digital assets, such as the role of Bitcoin in the transfer of wealth across generations, decentralized finance, stablecoins and central bank digital currencies (CBDCs).
CBDCs are virtual currencies that are issued and controlled by a federal regulator. Unlike Bitcoin and other cryptocurrencies, CBDCs are 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.
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. Silbert pointed out Bitcoin’s limited supply feature, saying: “Central banks love to print money.”
As he leads two major companies that are involved in various aspects of digital assets, Silbert is one of the most influential figures in the crypto industry. With over $40 billion in assets under management as of Feb. 12, Grayscale Investments is the world’s largest digital asset manager. Various crypto-related projects, such as Foundry, Genesis Trading and CoinDesk, are invested in by Digital Currency Group, which is a venture capital firm.
For a long time, Silbert has been vocal about his bullish views on BTC 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 projected that most altcoins will go bankrupt in the long run, while Bitcoin will continue to dominate the market.
To sum up, Barry Silbert is a prominent figure in the cryptocurrency industry who thinks that central bank digital currencies are beneficial for Bitcoin. He maintains that CBDCs will create the infrastructure for institutional interest in non-central bank cryptocurrencies like Bitcoin. He also highlights 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.