Microstrategy Co-Founder Michael Saylor says a central bank digital currency (CBDC) launch in the United States will only result in more interest in Bitcoin. He discussed his opinion on CBDC launch in a new interview with Valuetainment
There is a recent push for regulation of cryptocurrencies with the aim of controlling what the industry can or can’t do. This is being pursued by many countries around the world, but the U.S has been left behind with no regulatory framework for the industry.
The government after in other parts of the world powers have advanced in their CBDC research, but the U.S has reluctantly started considering a digital dollar. Such a digital currency will be based on a blockchain just like decentralized cryptocurrencies like Bitcoin, but will be centralized, with the control exclusively owned by the central bank.
While the government considers this a good way to get a good grip on the financial system, Saylor says such a move will only increase interest in Bitcoin.
“Interest in CBDCs will only fuel more fervent interest in Bitcoin. It is really increasing awareness, and Bitcoin is rising as people become more aware of the need for a non-sovereign store of value that is resistant to nation-states,” he said during the interview.
A CBDC has many Drawbacks
Saylor in the interview expressed his belief that a CBDC has many shortfalls that includes among other things mass surveillance of users. He said the government seeks to gain total control over the citizens’ financial spending, and place limits on access to funds.
On the contrary, he said he likes Bitcoin because no one has control over it, and you can spend it any time and whenever you see fit. This is the opposite of a CBDC which is programmable and you can be banned from spending at any time. Speaking on the issue, he said:
“It’s not money (referring to BTC) in a bank in Lebanon, Argentina, or anywhere else in Africa. Those banks will not let you withdraw your funds. Consider Nigeria: $42 per day. That is the maximum amount you can withdraw from the bank. They’ve taken your money. So Bitcoin is the only network that allows you a reasonable chance of controlling your own money and then spending it how you see fit.”
Meanwhile, the U.S is also one of the harshest countries in the world when it comes to cryptocurrency regulation, even though it has no framework for it.
Bitcoin is a decentralized digital currency created to serve as digital cash. It was the first cryptocurrency to launch, and is currently the most popular. Bitcoin has grown to an all-time high of over $60,000 in 2021, but has crashed to much lower prices.
One unique characteristic of the cryptocurrency that also applies to other digital assets is that you can carry any amount of it around without anyone knowing about it. The same cannot be said of gold, or cash, which are considered to be older rivals of Bitcion.
This is why the asset is preferred by people like Saylor since no one can confiscate or place any kind of restriction on it. The asset started growing again recently after the 2022 crash. Having hit a yearly high of $30,000, it has dropped to lower levels, and may still go lower.
However, analysts believe it may reach up to $100,000 by 2024, which is another thing that makes it attractive to investors. It isn’t only censor-resistant, it has been a good investment asset over the years.