Published: 01.04.2022
Article reading time:
2 minutes.
Leading digital asset strategist at Morgan Stanly believes that digital currencies can stand on a par with traditional, fiat currencies.
Sheena Shah, on the Market Thoughts podcast, stated that cryptocurrencies have already begun to undermine the global primacy of the US dollar due to growing interest among individuals and businesses.
“Consumers and businesses are increasingly looking to transact in cryptocurrencies. Perhaps most of them just want to trade the asset, however, as transactions in digital currencies become easier and the regulatory framework is clearer, digital currencies can stand on a par with conventional ones,” Shah said.
Crypto skeptics argue that goods and services cannot be quoted in digital currencies such as bitcoin due to volatility. However, the price of cryptocurrencies may begin to stabilize as people increasingly begin to buy everyday goods with cryptocurrencies, Shah is sure.
In her opinion, the time has begun when the stability of cryptocurrencies and their popularity will only grow. And in order for digital assets to be classified as a currency, payments with it must be simple, it must be possible to use it to pay taxes, plus it must become part of the gold and foreign exchange reserve.
Many crypto companies and exchanges, Shah says, have already issued Visa and Mastercard cryptocurrency debit cards that make it easy to pay in digital currencies. In 2021, Visa reported processing $2.5 billion in similar payments. Also, several local and national governments have introduced or proposed laws to allow citizens to pay taxes with digital assets. For example, Rio de Janeiro, whose residents can pay taxes in bitcoins since 2023, or the US states of Florida and Colorado, whose governors have proposed to allow paying state fees in cryptocurrency.
“Cryptocurrencies are going a long way in challenging the dominance of the US dollar, and the recent presidential executive order on digital assets says that for now, regulators will not get in the way of digital assets,” says Morgan Stanley strategist.
Earlier, Morgan Stanley analysts published a report that talked about the slowdown in the DeFi industry and said that the industry will develop very slowly in the coming years.
Source: Bits
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