Some cryptocurrency market observers and bitcoin bulls speculate that the evolution and potential proliferation of central bank digital currencies (CBDCs) could damage bitcoin and other digital currencies. Others don’t concur.
In fact, some experts believe that a digital dollar, which is a possibility in the U.S., could actually improve the case for bitcoin. Recently, Nellie Liang, the U.S. Treasury Department’s undersecretary for domestic finance, said that a digital dollar is under consideration in the U.S.
There are reasons for that and they don’t have to be destructive to bitcoin, the largest cryptocurrency by market value. Those include helping the dollar retain its status as the world’s reserve currency and improving efficiencies in cross-border transactions.
As noted by deVere Group CEO Nigel Green, there’s clear momentum for CBDCs as central banks in China and across the world are considering such moves. However, Green, who’s long been enthusiastic about bitcoin, sees the king of crypto benefiting from the evolution of CBDCs.
“Whilst CBDCs might…