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CME Group's CEO, Terry Duffy is speaking on why government is still hesitant to adopt Bitcoin and his view towards stablecoins.
Bitcoin is disrupting the world today, admitted or not. The largest cryptocurrency by market capitalization was the pioneer, which leads to the creation of all the cryptocurrencies that have changed the way people live today.
The regulatory aka the government, however, decides to maintain their opposition stance towards Bitcoin. According to the CME Group CEO, Terry Duffy, the major thing that makes the government do it is, unlike fiat currency, Bitcoin has a finite supply.
The supply cap doesn’t suit modern economic theories, on which governments are allowed to print money whenever they want it.
Still according to him, the “lack of feature” makes it very unlikely for governments to ever use Bitcoin.
Elaborating his point, “The governments can’t run unless they can run on a deficit.”
Moreover, Duffy said, “I am trying to figure out why they would say, ‘Sounds good to me because I want to be responsible and run everything on [an] even-for-even basis. I can’t borrow against anything’,” as quoted by CCN.
He added that Bitcoin will only be able to gain adoption on Wall Street is if it’s approved by the regulators, something that’s unlikely to happen as they keep on raising doubt about the cryptocurrency.
He pointed out what the Securities and Exchange Committee (SEC) has done in the last couple of years, which is rejecting the multiple Bitcoin ETF applications.
Duffy also highlighted the excessive fear of price manipulation, given the unregulated nature of Bitcoin market. Something that he said, “Once you get the use of it, the price will take care of itself. But the argument has gone only to the price of, say, bitcoin or any other cryptocurrency. No one is talking about, ‘How do I use this asset?'.”
Read more: US SEC chairman Clayton still woried over possible Bitcoin ETF manipulation
Closing his statement, he conveyed his opinion towards stablecoin, like the upcoming Facebook Coin by saying that they are a “better fit” for everyone, be it the regulators, governments, or other significant players in the financial industry.
“Only currencies backed by stable fiat assets like the dollar or euro could allow these organizations to enjoy a cryptocurrency without inheriting its risks,” Duffy concluded.