The CEO of the world’s largest Bitcoin wallet provider Coinbase is bullish on the digital currency when he says that Bitcoin could replace the US dollar as the global reserve currency by 2030. Though this is another point to say whether the US will allow a rival currency to replace its dollar, the ramifications of Bitcoin emerging as a reserve currency will be many.
In his latest tweet, Brian Armstrong, the co-founder and CEO of Coinbase, says that he thinks Bitcoin could surpass the dollar as reserve currency within 10-15 years. He also revealed that Coinbase had a “rough plan” to make this happen. Nonetheless, his organization is playing pivotal role in the entire Bitcoin ecosystem; he knows a lot more than the others for sure.
Founded in June of 2012, Coinbase helps merchants and consumers transact with the new digital currency Bitcoin. Based in San Francisco, California, the company has been able to mark its presence in the world’s most widely used alternative currency with a total market cap of approximately $3.5 billion.
Armstrong’s comments that has come after reports that France’s biggest bank, BNP Paribas, is looking at ways to incorporate Bitcoin into its currency funds, is further giving the idea that the digital currency indeed has a bright future. Earlier, BNP Paribas did a “beta testing” with cryptocurrency and an announcement is expected to be made in the coming weeks.
Though there are a lot of challenges in front of Bitcoin before it truly emerge as a reserve currency, one of the biggest barriers is that it is extremely volatile. However, Armstrong believes Bitcoin will overcome this issue as adoption and trust grows. He was quoted saying that volatility is a self-correcting problem.
Bitcoin as Reserve Currency can Play Pivotal Role in Global Economy
According to him they have seen that as it’s dropped in the last three years, year-on-year. He foresees volatility will die down in the next few years. Interestingly, the last year and this year has seen quite stable Bitcoin which when compared with the Bitcoin prices in 2013 seemed reasonable and reliable.
The history shows that reserve currencies have been changing over the years. Before the US dollar took over the reserve currency from the British pound sterling, it was gold that was considered the global reserve. However, as gold cannot be a practical solution for international transactions, Fiat had to replace, now it seems virtual currency’s time.
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