The top official of the GrayScale investments, Michael Sonnenshein, said that the launch and introduction of the digital dollar are unlikely to affect the market of the world’s most famous crypto asset, Bitcoin.
While talking to a local news channel, Sonnenshein said that the digital version of the American currency aims to serve the common people. At the same time, the possibility of capital gains in the BTC market is likely to push more individuals into the crypto market. He added,
I actually think we take the opposite view. We’re definitely seeing not only the digital dollar project underway, but also seeing a lot of other countries around the world, getting into launching their own central bank, digital currencies or CBD seeds. I think that will not displace or if anything take or market share or compete with decentralized currencies like bitcoin.
GrayScale and numerous other American firms, including Osprey Funds, stated that the digitalization of dollars would encourage people to enter the decentralized financial space. Greg King, the company’s founder, believes that the new dollar will give the state officials more control and push millions of people to adopt virtual assets, especially Bitcoin.
Besides that, he also highlighted the growing concerns in the market over the government’s control on the digital fiat currencies backed by the state banks. As of now, several countries across the world are studying the potential use of digital currencies.
Meanwhile, experts have raised concerns about the access of user’s data to the government, citing the example of the first country to launch its CBDC.
In America, the Federal Reserve bank has stated that it would need support from the upper chamber of the US Congress to push ahead with its plans to launch a digital currency.
It comes a month after the Digital Dollar Foundation revealed its plans to launch at least five pilot projects to test the new digital currency – the first-ever test in the United States.