BitPay Chief: Entry Of Facebook, JP Morgan In Crypto Creates Legitimacy For The Whole Industry
COO Of BitPay Says Entry Of Facebook And JP Morgan In Crypto Creates Legitimacy For The Whole Industry
- Sonny Singh of Bitpay sat down for interview with Bloomberg about institutional crypto assets.
- He believes that Facebook’s launch of Globalcoin will be good for the market for three main reasons.
Everyone interested in the cryptocurrency industry is keeping their eyes on Bitcoin, leaving the interest in mainstream institutions on the wayside. However, there has been a lot of growth in this sector, as big names like Facebook and JP Morgan launch their own digital assets, bringing cryptocurrency to groups that may not interact with it otherwise. As Sonny Singh sees it, this adoption by such big companies will bring a sense of legitimacy to the entire crypto market.
Singh, the COO of Bitpay, sat down for an interview with Bloomberg, discussing the impact that Globalcoin (Facebook's digital asset) and JPM Coin (JP Morgan’s digital asset) have on the whole industry. He said,
“You’re starting to see that these currencies have real use cases around the world, and it’s making people really excited now because they can see the light at the end of the tunnel for these use cases.”
He called the Globalcoin, which is tied in with USD and other fiat currencies, an “international Venmo,” adding that there are three big reasons that this token will ultimately be “great” for the industry.
The first of those reasons is that the two tokens would essentially make the crypto market more legitimate in the eyes of traditional investors. Furthermore, it would solidify tokens like Bitcoin and the altcoins in the eyes of the government, since institutions are getting involved now.
Then, Singh pointed to the market expansion projects filling up the crypto industry, specifically drawing attention to the “2 billion users around the world” that have their own Facebook profiles. While Facebook has held an evolving stance on cryptocurrency on their social media platform, the fact that they would be offering a token would expose these users to the industry that Facebook did not let them get involved in before.
The final point that Singh made had to do with the competitors that Facebook presently faces. As they become the first social media platform to get involved in cryptocurrency, other big retailer platforms like Google, Apple, Amazon, and others will be watching to see if the digital asset ultimately gains traction.
AT&T’s recent decision to use Bitpay as a way for customers to pay in Bitcoin was a “no brainer,” as Singh says. With this partnership, AT&T positions itself as a “more innovative” option for customers, while the brand “saves margins” with the use of these payments.
Still, there are “real projects” that are waiting to launch, and this is the time when Singh believes that the market will surge. He said that this will be “the tip of the iceberg,” as the community waits patiently for Facebook, E*Trade, Fidelity, Square, and others will be launching their projects. Singh takes his prediction further, saying that all of these projects will ultimately be good for cryptocurrency as a whole.
As this influx of products arrives, the Securities and Exchange Commission (SEC) will be faced with a regulatory paradox, forcing them to determine policies that can govern the mainstream crypto assets and the new institutional counterparts. The regulators will need to determine regulations that fit all cryptocurrencies, rather than the system presently being used on a case-by-case basis.