CBDC Could Create Tailwinds For Crypto, Grayscale Said

There are more bullish movements that are taking place into the crypto space.

It’s been revealed that the CEO of digital asset titan Grayscale Investments said that a central bank digital currency (CBDC) could propel Bitcoin (BTC) into further adoption and growth.

In a new interview on CNBC’s Squawk Box, Michael Sonnenshein explained that a federal-backed digital dollar could serve as a tailwind for investors and businesses to look into crypto.

He referenced also the payments giant PayPal, which now supports the buying and selling of cryptos.

“The emergence of a digital dollar or a federal-backed digital asset, we actually believe, creates a tailwind for investors to think about decentralized applications so companies like PayPal and others are already including decentralized protocols like Bitcoin and others in their business model.”

He also said the following:

“Shedding light on the use of digital assets, we think, is an enablement factor that does give investors more comfort.”

Sonnenshein says he disagrees with the idea that a CBDC could drive companies like Paypal out of business and displace crypto assets.

“Not crowding out, but instead actually shedding light on the usage of this technology. It would almost be an enablement factor here to look at the underpinnings of blockchain technology and also shedding light on the difference between federal or fiat-backed assets as well as decentralized assets like Bitcoin.”

“We have to remember that a lot of the ethos of this ecosystem is about creating a more inclusive, more equitable financial system, and so the more that we see adoption around us, the more that those ideas pervade investors and users.”

Regarding the price of Bitcoin today, at the moment of writing this article, BTC is trading in the red, and the king coin is priced at $41,353. Stay tuned for more news.