Coinbase Inc. COIN UK CEO Daniel Seifert on Thursday dubbed Bitcoin BTC/USD as a viable alternative in countries that are grappling with financial challenges.
In an interview with Benzinga, Seifert pointed to several catalysts fueling Bitcoin's meteoric rise to a new all-time high, including regulatory advancements and the anticipation of Bitcoin's halving event.
"Over 80% of G20 and major financial hubs have regulated or are in the process of regulating crypto," Seifert noted, highlighting the SEC's approval of several ETF applications in January, with Coinbase serving as the custodian for the majority.
This regulatory progress has contributed to a growing mainstream acceptance of digital currencies, now owned by 425 million people worldwide, he said.
Seifert emphasized the pivotal role of Bitcoin ETFs in boosting investor confidence towards digital assets. "The approval has created greater trust and confidence in the asset," he stated, acknowledging the surge in demand following the regulatory green light for ETFs.
Addressing the talent migration due to regulatory constraints, Seifert expressed optimism about the U.S. catching up, despite acknowledging a shift in the global distribution of crypto developers.
"Uncertainty is never good for innovation, so greater clarity on regulation will improve conditions for crypto companies in the U.S.," he said.
Emerging markets, according to Seifert, are crucial in advancing the crypto industry, offering solutions to financial challenges through digital currencies.
"Bitcoin has played a significant role in markets where traditional financial systems are ineffective or inaccessible, becoming an alternative to financial challenges in many regions," he said and added that countries with high inflation rates and limited access to traditional banking are increasingly turning to digital currencies to address these problems, as well as increase financial inclusivity.
On the topic of Ether ETFs, Seifert maintained a neutral stance, emphasizing consumer choice while acknowledging the unpredictability of regulatory approvals.
He also addressed the potential of Bitcoin becoming a global reserve asset, underscoring the importance of regulation and government approval in determining its future role.
Confronting the issue of scams within the crypto space, Seifert stressed the responsibility of platforms to educate customers and enhance security measures.
"As the most trusted and secure cryptocurrency platform, we regularly monitor our systems and actively manage our product," he said, outlining steps users can take to secure their online accounts.
He also addressed concerns about Bitcoin mining's energy consumption, calling it a misconception and highlighting the industry's shift towards more sustainable practices.
He welcomed the UK’s Financial Conduct Authority (FCA) approval of crypto investment products as a positive development, reflecting the growing global interest in cryptocurrency.
Read Next: Donald Trump's Crypto Portfolio Is Up 8%, But Which Asset Is The Top Performer?
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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