Prospects of Bitcoin as a currency are uncertain – Rabobank

Bitcoin's value has risen sharply on balance in recent months. Skeptics anticipate a collapse at some point, while true crypto believers see Bitcoin as the currency of the future. What is the biggest threat to Bitcoin? In the view of Wim Boonstra, Senior Advisor at Rabobank, central banks are not going to allow cryptocurrencies to take out their sovereignty.

Bitcoin faces a slightly contradictory threat that it could become too successful

“Central banks will not allow an uncontrollable type of alternative money to take away their control of domestic monetary developments. The same is true with stablecoins: central banks are now working hard on CBDC themselves, with the preservation of monetary sovereignty as the main reason.” 

“Bitcoin or any crypto should not become systemically important. Regulators have worked hard in recent years to strengthen the stability of the banking system and won't be happy to see it now eroded by shadow banking.” 

“Overall, I get the sense that the DLT, the real innovation behind cryptocurrencies, is likely to become a permanent fixture in the financial system. However, the prospects of Bitcoin as a currency, like those of other cryptocurrencies, are a lot less certain.”