Global Cryptocurrency
According to former Goldman Sachs President and advisor to President Donald Trump, Gary Cohn, there will be a global cryptocurrency, but it will not be Bitcoin.
In an interview with CNBC, Cohen reiterated that the global cryptocurrency wouldn’t be based on mining costs or costs of electricity. If true, then this will be a significant differentiator from Bitcoin, which is created from an energy-intensive mining process.
Bitcoin the first application of blockchain technology eliminated the need for third-party intermediaries by enabling the creation of a secure and permanent record of transactions between two parties. However, its adoption into the mainstream industry has been affected by the fact that people, let alone regulators around the world, don’t have a clear understanding of it.
Taking into considerations the complexities of bitcoin, Cohen believes the global cryptocurrency will be much simpler, something that will enhance its adoption.
“It will be a more easily understood cryptocurrency,” he said. “It will probably have some blockchain technology behind it, but it will be much more easily understood how it’s created, how it moves and how people can use it,” said Mr. Cohen.
While it comes as a surprise that Cohen is confident about the future of cryptocurrencies, it appears he is not a firm believer of Bitcoin, even though it is the world’s most valuable cryptocurrency. In addition, the former chief economic advisor expects Blockchain technology to have a big impact in various sectors of the economy.
Bitcoin resentment in the financial sector does not come as a surprise. Given that the virtual currency is resistant to censorship and regulation, it has always been rejected especially in the financial sector where regulators maintain a watchful eye. While its censorship resistance attribute is a nuisance to financial institutions, it remains a favored payment method for people who want to keep their financial dealings private.
Cohen remarks about a global cryptocurrency come at a time when confidence in the cryptocurrency appears to be picking up after taking a hit early in the year. The likes of Bitcoin and Ethereum have bounced back after coming under pressure amidst concerns over a possible bubble burst in the cryptocurrency sector.
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