- Alan Lane claims that Bitcoin will replace gold as a store of value in the future.
- Lane talks about Facebook’s Libra and expects it to gain acceptance soon.
A new character takes part in the debate about the growing adoption of Bitcoin. Alan Lane, CEO of the Silvergate Bank, talked about the future of Bitcoin as a store of value. In addition, he commented on the growing relationships between his bank, Silvergate, and institutions close to Facebook’s Libra.
Bitcoin will not replace the dollar but gold as a store of value
During an interview with Anthony Pompliano, one of the founders of Morgan Creek digital, Lane referred to the adoption of Bitcoin. He said that, in large part, he has had trouble gaining more adoption because of its reputation. Many in the media speak of Bitcoin as an asset used for criminal activities. It has been associated as a possible form of money laundering or as a method of payment in drug trafficking.
On the other hand, it is also argued that the price of Bitcoin is extremely volatile. Although the figures show that it is one of the best performing assets ever. This year it managed to outperform the S&P 500, one of the most reputable stock indexes in the world, on this aspect.
These two arguments have been refuted. But according to Lane, the perception remains in the banking institutions. In his opinion, Bitcoin will not replace the dollar, but gold as a store of value.
In countries like Canada this seems to be the trend for now. As demonstrated by a survey conducted by the central bank of that country. The figures show that half of the Bitcoin holders surveyed use it as a store of value. This represents only 3.2% of Canada’s population.
Facebook’s Libra will become increasingly accepted
Later, Lane talks about the progress made by Facebook Libra. Although he has had significant opposition in the United States and the European Union, Lane was optimistic.
The CEO of Silvergate believes that compared to traditional financial institutions, Facebook’s Libra is superior in its ability to reach and build networks. It allows a large number of people to connect and use its platform as a method of commercial exchange.
For Lane, the recent events about Libra will not prevent its acceptance. In large part because of the great potential the Facebook currency has.
For now, Libra has begun its testnet phase. It has managed to complete 51,000 transactions in this first stage. However, its most significant achievement, according to crypto space experts, is to steer the interest of world governments towards digital coins.
This has led many major countries to consider implementing their own digital coin. In addition, they have recognized that the technology behind cryptocurrencies could bring better payment mechanisms, among other breakthroughs, to the international financial system.
The price of Bitcoin, at the time of publishing the article, is $8,114 with a slight gain of 0.17% in the last 24 hours.
You can see the full interview with Alan Lane below: