Bitcoin on the central bank’s balance sheet? Yes, predicts Gemini’s Winklevoss – News
Winklevoss predicted in 2015 that Bitcoin’s market capitalization would reach $ 1 trillion, which happened in 2021.
A central bank will have Bitcoin on its balance sheet because it has gold on its balance sheet, bitcoin advocate Tyler Winklevoss, co-founder of Gemini, said during an AIM Summit webinar on the convergence of crypto markets and capital.
Winklevoss predicted in 2015 that Bitcoin’s market cap will reach $ 1 trillion, which happened in 2021. “At some point a central bank will have Bitcoin on its balance sheet, this will happen simply because central banks have gold in their balance sheet. . And Bitcoin is gold to highlight, ”Winklevoss said.
“I think you have a world where all companies, public private companies put Bitcoin on their balance sheets. You have sovereign wealth, endowments, central banks too, because that’s right, they’ve already done it with gold, and everyone agrees that Bitcoin is a better version of gold.
The famous Winklevoss twins – Cameron Winklevoss and Tyler Winklevoss – whom you may remember are known for their legal battle with Facebook founder Mark Zuckerberg, but it’s over. The Winklevoss twins have charted a whole new course and eased the way for digital asset investors.
The AIM Summit Webinar on Converging Crypto and Capital Markets also hosted Frederick Pye, CEO of 3iQ and Zachary CEO of Dalma Capital.
“Our advice to cryptocurrency investors in the Middle East would be to start with a liquid, regulated investment that can be followed in the context of a regular portfolio. Embrace bitcoin as a long-term tech game, a potential future store of wealth, or a portfolio diversifier. Bitcoin is the technological platform of the new digital world, ”said Pye.
Canadian digital asset management firm 3iQ has received regulatory clearance for a double listing of the Bitcoin Fund (QBTCu.TO) on the Nasdaq Dubai, making it the first fund indexed to digital cryptocurrency assets in the Middle East.
The Bitcoin Fund, which was listed on the Toronto Stock Exchange last year, has around $ 1.5 billion in assets under management and plans to manage double that next year, Frederick Pye told Reuters , CEO of 3iQ, in an interview.
“The idea is that bitcoin trades 24 hours a day … so our interest is to bring a regulated product to the Dubai market during their hours,” Pye said.
The shares are expected to start trading on Nasdaq Dubai in the second quarter. Pye said 3iQ is already in talks with stock exchanges in Singapore, Taiwan, Sweden and the United States to list the Bitcoin Fund in these markets, eventually targeting 24-hour cryptocurrency trading.
Dalma Capital, a Dubai-based alternative investment firm, was the manager of 3iQ’s syndicate for the fund’s expansion in the Middle East. Corporate Finance Advisor 01 Capital and London-based investment firm Razlin Capital advised the listing and Pinsent Masons acted as legal counsel for the listing process.
“We believe now is the right time to expand this unique investment opportunity in the Middle East region,” said Pye.
Institutional investors, including sovereign wealth funds, have expressed interest in the listing, Cefaratti said.
“There was just a lot of grassroots demand for it. Historically, investors who attempted to invest in bitcoin through their regional banks … in many cases, if banks found out that they were sending money to cryptocurrency exchanges, they would in fact close their accounts. . So this is a huge change and a huge change, ”said Cefaratti.
At the same time, the latest edition of the PwC Global CBDC Index 2021 highlights the ongoing transformation triggered by central bank digital currencies (CBDCs) around the world.The PwC Global CBDC Index is designed to measure the level of maturity of a central bank in the deployment of its own digital currency.
It provides a synthetic index, capturing the progress of central banks, the position on CBDC development and the public interest in two distinct use cases: retail CBDCs which are owned directly by citizens and businesses; and interbank or wholesale CBDCs which are reserved for financial institutions, primarily for interbank payments and financial settlement processes.
“We believe that the CBDCs will make a significant contribution to the modernization of the international monetary landscape, along with the reconfiguration of payment and financial infrastructures. They will create many opportunities for further digitization in businesses and financial institutions as they become integrated into payment and financial infrastructures. Seizing these exciting opportunities will require upgrades to operational, legal and regulatory processes as well as alignment of accounting and internal control measures, ”the report said.
“The evolution of CBDCs could allow deposit holders to keep their savings directly with the central bank, which would pose a significant threat to the commercial banking model given the potential disintermediation of banks in holding (and lending) savings. Given the important role of commercial banks in creating money through fractional reserve banking, CBDCs are likely to be accompanied by “ forced intermediation ” – requiring CBDC holders to designate an authorized member bank to “ hold ” their CBDCs on their behalf and continue to maintain exclusivity. for commercial banks to hold deposits directly with the central bank, thus allowing commercial banks to continue to make fractional reserve deposits and lend excess liquidity. Such forced intermediation will largely maintain the status quo of the financial system while unlocking many of the advantages of CDBCs over current monetary systems, but it will continue to put CBDCs at a disadvantage over truly decentralized cryptocurrencies like bitcoin, ”he said. added Cefaratti.
More than 60 central banks have been exploring CBDCs since 2014. Progress has accelerated, with some CBDC projects now entering the implementation stages. Institutional involvement in the CBDC continues to strengthen the ecosystem as a whole, with public actors such as the Bank for International Settlements, the World Bank, the International Monetary Fund or the World Economic Forum active on the subject.
More than 88% of CBDC projects, in pilot or production phase, use blockchain as the underlying technology. While a blockchain is not always necessary to create digital tokens, blockchain technology brings several benefits to CBDC developments. – [email protected]