A digital dollar won’t doom bitcoin, according to two cryptocurrency fund managers.
As central banks around the world consider digitizing their fiat currencies, the trend could actually push more investors into crypto, Grayscale’s Michael Sonnenshein and Osprey Funds’ Greg King told CNBC this week.
“That will not displace or, if anything, take market share or compete with decentralized currencies like bitcoin,” Sonnenshein, the CEO of Grayscale, said in a Monday interview on CNBC’s “ETF Edge.”
“I think it all trends towards the digitization of money and something that investors and just your average person … who may not be in the investment market can glom onto as well,” Sonnenshein said.
Grayscale runs the largest bitcoin-based fund in the world, the Grayscale Bitcoin Trust (GBTC), with over $24 billion in assets under management.
While bitcoin has yet to establish itself broadly as a payment mechanism, its role as a store of value may only strengthen with the introduction of government-backed digital currencies, said King, the founder and CEO of Osprey, another bitcoin fund provider.
“Imagine the world’s fiat currencies are digitized. I actually think that pushes more people into something like a bitcoin because, frankly, that would give governments even more control than they already have around their money supply, and a lot of people get into bitcoin for concerns about that type of control,” he said in the same “ETF Edge” interview.
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