The CEO of Payoneer, which is a payments processing firm based in New York City, has recently opined that it is not at all realistic to have a single cryptocurrency like Bitcoin that operates globally. The CEO is called Scott Galit and he happened to make these comments while he was being interviewed with business news outlet CNBC recently, on the 28th of December.
CNBC was interviewing Galit as his firm had found a mention in CNBC’s list of most disruptive companies this past year. Payoneer, which took the 13th slot in the list is a company that renders financial services including multinational support for individuals and corporates in the field of cross-border money transfers and digital payments.
Galit argued for the fact that having a single cryptocurrency such as Bitcoin was anything but realistic on the grounds that governmental opposition and legal complications (especially in relation to Central Banks) made it difficult to avoid fiat currencies and stick to just Bitcoin or other such cryptocurrencies. He said that since most governments derive the bulk of their earnings or revenue in the form of taxes collected from residents, it would never become viable to collect taxes from the citizens in the form of Bitcoins, considering how volatile the cryptocurrency’s price point usually is.
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He said that if fiat currencies like the US Dollar were as volatile as Bitcoin is, then the governments would never be able to meet their budgetary requirements.
About Central Banks, Galit said:
“Central bankers are there to actually help manage economies and provide a kind of stewardship for for those economies […] Part of that is actually managing currency in the interest rates [for lending] and in exchange rates. If you don’t actually have any control over a currency you’ve lost one of the major policy tools that you have, so what do you do?”