Central Bank Digital Currencies a Real Threat to Crypto but Won’t Permanently Destabilize Bitcoin – Markets and Prices Bitcoin News
According to the Soros Foundation’s chief investment officer (CIO), central bank digital currencies pose a potential threat to bitcoin and other cryptocurrencies, but only temporarily. He also claims that bitcoin robs gold of some of its buying power.
Dawn Fitzpatrick, chief investment officer (CIO) of the Soros Foundation, spoke to Bloomberg’s Front Row last week about bitcoin and the impact central bank digital currencies (CBCs) could have on the crypto industry. She said:
We think the whole infrastructure around crypto is really interesting….. We have invested in this infrastructure, and we believe we are at a turning point.
She gave several examples of where her firm invests, including stock exchanges, asset managers, custodians and tax advisory firms. Earlier this month, Soros Fund Management invested in New York Digital Investment Group (NYDIG), a provider of bitcoin investment technology and solutions.
The Soros Foundation has about $27 billion in assets under management. Institutional Investor is the second best performing hedge fund of all time, with an annual return of 44% since its inception in 1970 by veteran investors George Soros and Jim Rogers.
Digital currencies of central banks A temporary threat to cryptocurrencies
Fitzpatrick also discussed the potential impact of central bank digital currencies on the cryptocurrency market. I think digital currencies from central banks will come faster than expected, she said, citing the example of China. There are a few strategic reasons why they [China] will be pioneers, continued the CIO, who noted that China wants to roll out its digital currency globally. She warned:
This is a potential threat to bitcoin and other cryptocurrencies. I think it’s a real threat, but I think it will be temporary. I don’t think they can permanently destabilize bitcoin.
Fearing devaluation of fiat currency, investors are shifting from gold to bitcoin
Fitzpatrick explained that he sees bitcoin as a commodity: When you think of bitcoin, I don’t think of it as a currency. I think it’s a utility item, but it’s easy to store. Easy to transport.
She went on to describe how the rapid increase in the US money supply has prevented bitcoin from remaining bitcoin, and pointed out that there is a real fear of devaluation of fiat currency. The CIO said: In terms of crypto in general, I think we’re at a very important point where something like bitcoin may have remained an untapped asset, but in the last 12 months we’ve seen the money supply in the U.S. increase by 25%.
The Soros Foundation director also thinks some investors will switch from gold to bitcoin over time:
If you look at the performance of the gold price in the context of fairly high inflation, it’s struggling to hold up, and I think that’s because bitcoin is taking away some of its customer base.
The whistleblower was also asked if she owned bitcoins herself. But she laughed and replied: I won’t answer that question.
Do you agree with the Soros director, Mr. Fitzpatrick? Let us know your comments in the section below.
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