The Best Advice on I’ve found

Barry Silbert Explains Why Central Bank Digital Currencies Boost Bitcoin

Barry Silbert, the founder and CEO of Grayscale Investments and Digital Currency Group (DCG), has recently expressed his bullish outlook on Bitcoin in a Grayscale investor call on Feb. 12. He discussed various topics related to digital assets, such as Bitcoin’s role in the generational shift of wealth, stablecoins, decentralized finance and central bank digital currencies (CBDCs).

A federal regulator issues and controls CBDCs, which are digital currencies. 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. 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 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 said that he was confident that central banks will not cap the supply of the digital currency and will require users to engage and use the existing financial systems. “Central banks love to print money,” Silbert noted, pointing out Bitcoin’s limited supply feature.

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. 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 been vocal about his bullish views on Bitcoin and other cryptocurrencies for a long time. He has also been critical of some projects, such as Ripple (XRP), which he considers to be centralized and not a true cryptocurrency. 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 contends 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: Digital Currency Group and Grayscale Investments.