A variety of reactions all around the globe have been inflamed by the El Salvadoran adoption of Bitcoin (BTC) to be used as a legal tender. Although those in favour of Bitcoin are consequently praising this step yet various regulatory bodies are vocalizing their criticism for cryptocurrencies and are condemned by many people for being unreliable as well as dangerous.
For instance, the refusal By World Bank to help El Salvador by World Bank is a fresh example of these reactions stating that the shortcomings related to transparency and environmental influence of Bitcoin are the cause behind the denial.
On a podcast, Anthony Pompliano touched the subject with the CEO and founder of ShapeShift, Erik Voorhees, by saying that the Industry is far ahead, leaving the governments to lag 3 to 6 years behind. The governments, he stated, are not grasping the potential of Bitcoin as it would continue to develop into an exceptional currency type. He further mentioned that ultimately, it would out-compete the traditional currency all around the globe. Previously this month, severe criticism has been made by Elizabeth, the U.S. Senator, mentioning the environmental concerns and security threats. Further, she pointed toward the legal, financial, and macroeconomic concerns related to the adoption of Bitcoin (BTC) by El Salvador.
Voorhees, while discussing the negative responses from the regulatory authorities, revealed his expectations for the regulators to realize that the openness of the system, lack of fraud, honest money, and transparency are just a step away from the decentralized technology. He further disclosed that the governments would not be able to harness the expedition of crypto as it was done by them with the traditional currency because the people themselves are now taking their private financial decisions without any observance of governments over them.
In response to Pompliano’s discussion on DeFi and Bitcoin adoption, Voorhees disclosed that the financial institutions are unaware of the future as the DeFi will prove to be as dominant in financial tooling as Bitcoin is in currency.
A recent report, including the polling of Chief Financial Officers at 100 hedge funds all around the world, revealed an increased interest of the prominent hedge funds regarding digital assets. According to the report, the dominant proportion of hedge funds is expected to be invested in digital currencies within the next five years.