Bitcoin will soon no longer be used for payments: Paxos CEO

[ad_1]

In an interview with CNBC’s “Squawk on the Street” on Jan. 19, Paxos co-founder and chief executive Charles Cascarilla said there will be many changes in institutional appetite in 2022.

“The degree of interest and the degree of mainstream adoption that I see coming is huge,” he said before adding that price changes do not correspond to changes in fundamentals.

Curious what #crypto price fluctuations mean in the long term? As Paxos CEO Charles Cascarilla told @CNBC @SquawkStreet this morning, volatility doesn’t mean “fundamentals have changed”. Catch the segment here https://t.co/gYw5RniBCO

— Paxos (@PaxosGlobal) January 19, 2022

Bitcoin is a speculative tool

When asked if this year would see more crypto assets such as Bitcoin or Dogecoin being used as payments, he was not so optimistic. He said people want dollars and they want to make payments in dollars.

Cascarilla continued to argue that “money is a commodity, and it just hasn’t moved fast enough with the way our lives have changed,” adding that this narrative is why the use of stablecoins increased. The total stablecoin market capitalization is around $173 billion, up over 400% from last year.

He suggested that crypto assets are mostly speculative and not likely to be used as payments:

“Do people want to use Bitcoin and Dogecoin to buy things? I’m not sure, I think a lot of it is about owning an asset that’s going to go up… it’s not really money today, dollars are money.

Cascarilla thinks 2022 will be the year that dollar-pegged stablecoins will be regulated and used to buy everyday goods and services, adding that it’s “likely unlikely” that BTC will be used in the same way.

However, it stands to reason that the boss of a stablecoin company would be more bullish on his own product than a rival decentralized payment option.

Stablecoin Ecosystem Insights

Paxos is a minnow among stablecoins, ranked ninth with just 1 billion in circulation, giving it a stable market share of 0.6%.

Tether is still the industry leader with around 45% dominance, although this has fallen sharply from 75% at the same time last year. Most of those losses have been to rival Circle, as USDC’s supply has grown 800% over the past 12 months to $45 billion or 26% market share.

The third-largest stablecoin by market capitalization is Binance USD (BUSD), which has a circulation of 14.2 billion tokens, according to CoinGecko. TerraUSD (UST) took fourth place in decentralized DAI with 10.7 billion tokens while there are just under 9.4 billion DAI in circulation.

On January 13, CryptoPotato reported that a number of US banks had formed a consortium to mint their own USDF stablecoins.

SPECIAL OFFER (sponsored) Binance Free $100 (exclusive): Use this link to sign up and receive $100 free and 10% off Binance Futures fees for the first month (terms).

PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to get 25% off trading fees.

[ad_2]