With all the focus firmly pegged on the price chart of Bitcoin [BTC], the case for mainstream financial and technology institutions veering towards the digital assets realm is often forgotten. Bitpay’s Sonny Singh however, claims that this very adoption is buoyant for the industry as it brings legitimacy.
In a recent interview with Bloomberg, the CCO of Bitpay spoke about the importance of Facebook’s GlobalCoin and JP Morgan’s JPM Coin. Singh compared the Menlo Park company’s GlobalCoin, backed by USD or a basket of fiat currencies, to an “international Venmo.”
Singh highlighted three key reasons why the Facebook Coin would be “great” for the cryptocurrency industry. First, the digital currency industry will find legitimacy with the introduction of both GlobalCoin and the JPM Coin, he stated.
“It legitimatizes [the] digital currency industry, so now Facebook and JP Morgan have a coin, then the government can’t rule that, “hey, Bitcoin is illegal now”
He then went on to shed light on the market expansion prospects of the cryptocurrency industry, owing to Facebook’s “2 billion users around the world.” Finally, he stated that competitors will be “on notice,” questioning what the likes of Google, Apple, Amazon, Rakuten, and Alibaba will employ once Facebook’s GlobalCoin accumulates “traction.”
Singh added that the decision of AT&T to integrate Bitcoin payments for bills via Bitpay was a “no brainer.” This partnership would be beneficial for AT&T on two fronts, primarily from a technology point of view as this is a “more innovative” option. On the other hand, from a payment perspective as the company “saves margins” during BTC payments, argued the Bitpay executive.
Singh stated that he expected the market to surge in the future as “real products haven’t launched yet.” Singh deems this period, “the tip of the iceberg,” as the industry awaits the launch of cryptocurrency projects from the likes of Facebook, Etrade, Fidelity and even Square, all of which will have a positive effect on the digital assets industry.
Singh also highlighted the regulatory paradox that will befall the SEC, when tabled with decisions pertaining to mainstream digital assets like Bitcoin and Ethereum versus their institutional counterparts from the JP Morgans and Facebooks of the world. The regulators will have to craft regulations around “all digital currencies,” rather than a piecemeal system. He concluded,
“How is a regulatory going to show, JP Morgan we like, but Bitcoin and Ethereum we don’t like.”
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