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Coinbase CEO Says Bitcoin Our Next Reserve Currency

Now that bitcoin has been getting a little more positive press with its prices hovering around the $300 mark, the CEO and founder of Coinbase — the world’s largest bitcoin wallet provider — appears to be extra bullish about bitcoin’s future.

In fact, Brian Armstrong went as far as saying that “bitcoin could surpass the dollar as reserve currency within 10-15 years,” International Business Times reported.

This comes at a time bitcoin has made big headlines internationally with banks such as France’s BNP Paribas that has said it is looking how to use bitcoin within its currency funds. The bank said it has been testing the digital currency and told International Business Times that it plans to report the results of its tests soon.

Bitcoin, of course, gets most of its criticism because of its connection to criminal activity and its volatility of prices, but Armstrong has also been a strong proponent that bitcoin could wade the volatility issues. The year 2015 has been a relatively stable year for bitcoin’s prices since they’ve been more stable with price variations going more on the upward trend than downward.

“Volatility is a self-correcting problem, and we’ve seen that as it’s dropped in the last three years, year on year,” Armstrong said in an interview late last year. “I foresee it continuing to do that over the next few years.”

When compared to how the U.S. dollar has been as a reserve currency, there’s been a bit of decline in recent years.

“We are seeing the beginnings of a change,” banking consultant Patrick Barron told IBT. “[The U.S. Federal Reserve] has been inflating the dollar massively, reducing its purchasing power in relation to other commodities, causing many of the world’s great trading nations to use other monies upon occasion.”

To check out what else is HOT in the world of payments, click here.

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New PYMNTS Report: Preventing Financial Crimes Playbook – July 2020 

Call it the great tug-of-war. Fraudsters are teaming up to form elaborate rings that work in sync to launch account takeovers. Chris Tremont, EVP at Radius Bank, tells PYMNTS that financial institutions (FIs) can beat such highly organized fraudsters at their own game. In the July 2020 Preventing Financial Crimes Playbook, Tremont lays out how.

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