As stated by the head of the White Company, Elizabeth White, it is “extremely unlikely” that cryptocurrencies will be able to surpass the traditional financial system, at least at the current stage of development.
Elizabeth White emphasized that at the moment “the volume of transactions in fiat currencies is an order of magnitude greater than the volume of cryptocurrency payments,” so it’s too early to talk about replacing traditional money with digital assets.
“Why should governments and international companies suddenly switch to using Bitcoin instead of their usual money? They simply do not have such a need, and the adoption of cryptocurrencies has not yet reached this level. Of course, Bitcoin will always survive, because it is not pegged to the currency of any country, ”White said.
However, White believes that in the future there may be a global digital currency. Such a coin could be issued, for example, by the World Bank. It would be tied to a basket of fiat currencies and could draw attention to the blockchain technology. In addition, such a currency could easily be used for payments.
“I believe that over the next 10 years, the blockchain technology will affect almost every aspect of our life. Since most blockchain projects do not need their own token for work, 10-15 tool tokens will remain on the market. Among the cryptocurrency will remain only Bitcoin and its fork, as well as the ether and several other coins, like BAT. For payments, mainly stablecoins will be used. It is also very likely that we will see state digital currencies, ”White noted.
According to Randal K. Quarles, Chairman of the Financial Stability Board (FSB), cryptocurrency can challenge any financial structure. At the same time, representatives of the Federal Reserve Bank of New York, on the contrary, believe that digital assets will not be able to compete with the dollar in the near future.