The widespread adoption of cryptocurrencies, especially Bitcoin (BTC) has brought up controversial topics over its decade of existence, with various industrial experts choosing a side between digital currencies and fiat currencies.
The latest person to weigh into the debate is the co-founder of Morgan Creek Digital, Anthony Pompliano.
In a Friday interview with CNBC Squawk Box on the current state of the crypto market and what the future holds for cryptos, especially Bitcoin, Pompoliano commented that regardless of the price volatility associated with cryptos, people would always prefer them over fiat.
He explained that the inability for government to control Bitcoin just like fiat currencies will always make it “attractive” and would make it stand out.
“Over time more and more people would choose a currency that a government does not control,” Pompliano said.
In the interview, Pompliano went further to site different scenarios where Bitcoin would edge fiat currencies.
He noted that a country’s economic position could not affect the value of Bitcoin because its value is not tied to any nation’s economy.
Another feature he noted that makes Bitcoin attractive is the fact that it cannot be seized or confiscated by the government, he added.
There have been cases of countries developing their cryptocurrency, and as such, this development is considered a threat to Bitcoin and other altcoins value.
Pompliano was next quizzed on how Bitcoin would remain a store of value if every country decides to develop a digital currency just like China.
He stated that countries developing a digital currency would not affect the store of value of Bitcoin. Instead, it will only stir up competition among different countries’ monetary policies.
Notably, Pompliano asserted that said he would quickly tokenize the U.S. dollar if he has the means to do so. This is because since the launch of China’s digital Yuan is around the corner, countries would find it easier to buy the digital Yuan, and it would see the dollar’s position threatened as the global reserve currency in the future.
Meanwhile, the People’s Bank of China (PBoC) is yet to give a timeline for the launch of the digital Yuan. Early speculation had it that the currency would be released in the first quarter of 2020, but recent comments by the Chinese apex bank governor, Yi Gang shows there is no official launch date for the Chinese crypto.