The CEO of the cryptocurrency company Paxos, Charles Cascarilla, believes that, despite the high volatility of cryptocurrencies, buyers will remain interested in them, especially the demand for stablecoins will grow.
In an interview with CNBC, the co-founder of Paxos said that the recent fall in the cryptocurrency market does not necessarily indicate a change in some of the basic principles of the industry, as digital assets are rapidly being adopted around the world. Cascarilla mentioned several large companies that have integrated payments in cryptocurrencies.
So, last year, the Newegg online store began to accept payments in DOGE, LTC and SHIB. And, according to Capgemini, in the next two years, 45% of consumers will switch to payments in cryptocurrencies. Cascarilla expects that in 2022, the appetite of institutional investors for crypto assets will only increase.
However, when it comes to using BTC or DOGE to make payments, Cascarilla is not very optimistic. Fiat currencies are more suitable for these purposes, since digital assets are mainly used for investments. According to the head of Paxos, investors need dollars because people want to pay with them. He called fiat money a product that has not kept pace with the changes taking place in modern life. This is the reason for the high demand for stablecoins, the total market capitalization of which has now exceeded $173 billion.
Cascarilla suggested that stablecoins pegged to the US dollar will continue to be in high demand in 2022. Including the stablecoin PAX, which has become especially popular in Brazil.
Earlier, the chairman of the US Federal Reserve System (FRS), Jerome Powell, said that stablecoins will be able to function alongside central bank government digital currencies. However, many regulators fear that stablecoins will become a threat to the US dollar and have repeatedly raised the issue of their regulation.
The crypto industry will welcome reasonable rules for digital assets, Cascarilla says. The clear requirements of the law that crypto companies will have to comply with will benefit the entire industry in the long run, and the lack of regulation can slow down its development.
Six months ago, Cascarilla said that for the widespread adoption of stablecoins, regulatory state control is necessary, otherwise they will not be taken seriously by governments.