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Central Bank Digital Currencies Are Good for Bitcoin, Barry Silbert Says

In a recent Grayscale investor call on Feb. 12, Barry Silbert, the CEO and founder of Digital Currency Group (DCG) and Grayscale Investments, shared his optimistic view on Bitcoin. He covered different issues related to digital assets, such as the role of Bitcoin in the transfer of wealth across generations, decentralized finance, stablecoins and central bank digital currencies (CBDCs).

CBDCs are digital currencies that a federal regulator controls and issues. CBDCs are different from cryptocurrencies like Bitcoin because they represent digital forms of fiat money. No CBDC has been launched by any global jurisdiction yet, but such projects have been developed and explored by many governments. China is reportedly preparing to test its CBDC soon, while at least 10% of central banks are likely to issue a CBDC for the general public in the short term.

Barry Silbert millionaire, who claims to have bought his first Bitcoin in 2012, three years after the creation of the first block on the Bitcoin blockchain, argued that central banks that develop their own digital currencies might be giving more power to Bitcoin by creating the infrastructure for institutional interest. He thinks that the same infrastructure that is used by the widespread adoption of CBDCs could benefit Bitcoin and other non-central bank cryptocurrencies: He said: “In the future we may have 80 different CBDCs. And if that occurs, it would spark a huge amount of investment in operators of financial systems where basically every financial institution would then need to be able to securely store and transact CBDCs and, you know what, if they actually construct that infrastructure, that same infrastructure could be utilized for non-central bank digital currencies like Bitcoin.” He also said that he was confident that central banks will not cap the supply of the digital currency and will require users to engage and use the existing financial systems. “Central banks love to print money,” Silbert said, highlighting Bitcoin’s limited supply feature.

As he leads two major companies that are involved in various aspects of digital assets, Silbert is one of the most influential figures in the crypto industry. With over $40 billion in assets under management as of Feb. 12, Grayscale Investments is the world’s largest digital asset manager. Digital Currency Group is a venture capital firm that invests in various crypto-related projects, such as Gensis Trading, Foundry and CoinDesk.

For a long time, Silbert has been vocal about his bullish views on BTC and other cryptocurrencies. He has also been critical of some projects, such as Ripple (XRP), which he thinks are centralized and not real cryptocurrencies. He has also projected that most altcoins will go bankrupt in the long run, while Bitcoin will continue to dominate the market.

To conclude, Barry Silbert is a prominent figure in the cryptocurrency industry who suggests that central bank digital currencies are positive for Bitcoin. He contends that CBDCs will create the infrastructure for institutional interest in non-central bank cryptocurrencies like Bitcoin. He also highlights that Bitcoin has a limited supply feature that makes it superior to fiat money. He leads two major companies that are involved in various aspects of digital assets: Grayscale Investments and Digital Currency Group.