There Shall be a Global Cryptocurrency; It Will not be Bitcoin
We might just have a global cryptocurrency in the future but it will not be Bitcoin. At least that’s according to former Trump economic advisor Gary Cohn. If we are to believe him, the global crypto will not come with energy-sapping mining that is part and parcel of most digital currencies in existence now.
Cohn is not a believer of Bitcoin himself, he told CNBC. Instead, “I am a believer in blockchain technology,” he said.
As the world gradually understands the blockchain technology a global cryptocurrency will come into place but it will not be “based on mining costs or cost of electricity or things like that,” he noted.
A growing number of countries are mulling over launching their own cryptocurrencies. Venezuela already has its El Petro developed reportedly with help from Russia. The central bank has been mandated to accept it as payment.
The Marshall Islands is also planning its own and Japan, Kazakhstan and Dubai are considering the move.
It is not clear what form the global cryptocurrency Cohn has in mind.
While Bitcoin is yet to be widely used in day to day transactions, institutional investors are lining up to take advantage of the highly volatile but otherwise lucrative space. ICE, NYSE’s parent company is recently reported to be planning to have a cryptocurrency exchange.
Goldman Sachs where Cohn previously worked is to provide clearing services for bitcoin futures contracts.
Of course, CBOE and CME launched bitcoin futures contracts late last year but the renewed interest could catapult the market to greater heights.
With institutional money pouring in, pundits believe it will provide a stabilising factor against huge price swings.
However, renewed interest as was the case late last year could precipitate another bubble. It also opens the floodgate for people betting against the market.
For now, Bitcoin continues to face regulatory pressure that has stifled its growth for much of this year. Governments and financial institutions have become major stumbling blocks amid concerns of money laundering.