Veteran investor and financial commentator Jim Rogers has shared his perspective on the role of cryptocurrencies, specifically Bitcoin (BTC), in relation to serving as a government-backed currency.
According to Rodgers, despite Bitcoin’s growth in its current state, the primary role of the flagship cryptocurrency is that of a trading vehicle and does not pose a threat to governments in terms of replacing existing currencies, he said during an interview with Kitco News published on January 31.
“If crypto becomes a threat to governments to their money, they will probably do something, but so far, it’s not a threat. It’s just a trading vehicle,” he said.
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He emphasized that governments are unlikely to recognize Bitcoin as a currency, citing concerns about its competition with existing monetary systems.
At the same time, he downplayed the global impact of Bitcoin as a currency, citing El Salvador’s adoption as a limited example.
“I don’t see cryptocurrencies becoming money because the governments do not want that competition. We do have Bitcoin is being accepted more, but I don’t think it’s a legitimate currency anywhere yet except maybe El Salvador. But El Salvador only has six
million people. I don’t think that’s going to change the world,” he said.
The impact of CBDC
Looking ahead, Rogers predicted that digital currencies, particularly central bank digital currencies (CBDCs), will likely be embraced by several governments globally.
“I fully expect that eventually currencies are going to be on the computer it’s much more efficient it’s cheaper, it’s better for many people and governments,” he added.
However, the investor expressed reservations about the heightened surveillance potential of CBDCs, as governments would gain access to detailed information regarding individuals’ financial activities.
This concern arose at a time when former US President Donald Trump commented on the possibility of the country adopting a CBDC. As reported by Finbold, Trump vowed not to permit the currency, emphasizing that it infringes upon freedoms.
“I will fully uphold the Second Amendment. I will never allow the creation of a central bank digital currency where they can rob your money. We will protect innocent life, and we will restore free speech,” Trump said.
In the meantime, the US House Financial Services Committee passed the CBDC Anti-Surveillance State Act as part of an initiative against the proposed currency.
Watch full interview below:
