Bitcoin Is Above Everything, Even Stablecoin and CBDC: Says Blockstream CEO Adam Back
In an exclusive interview, the CEO at Blockstream, Adam Back made a most prominent statement. He said, for him, Bitcoin is beyond everything, whether they are stablecoins or any other central bank coins.
Adam Back made his appearance in the G20 meetings this year took place in Japan. At G20, he opened up regarding the beneficial use cases of emerging blockchain technology.
Sitting beside the Dutch central bank’s president at G20, Back stated he found blockchain a future initiative for open networks.
Further, he said, monetary organizations no more take advantage of the technology because it would mean that international transfers would not require central banks with questionable credit.
Financial Services Agency of Japans stated Back is legendary cypherpunk. He is the person who can facilitate with fruitful discussions regarding the role that cryptography and blockchain can play in the near future.
In an interview, the CEO was asked to give remarks on China’s central bank digital currency (CBDC). Also, he was asked to comment on the growing uses of blockchain in the private sector. In response to both the questions, Back states he is standing with the Bitcoin and considers nothing is above it.
think that blockchains are more about permissionless, uncensorable usage and free-market money – separating money from the state – using a gold-like mined digital commodity money: Bitcoin. I think while it is possible and useful for some use cases, like crypto trading, to have stable coins, they inherently fall short of Bitcoin as they have custody risk. And if there is a central bank underwriting also traditional establishment interests reflected in the operation which may look unattractive to users.
Moreover, Back remarked regarding Facebook-powered Libra. He stated Libra is not more than just another ” banking app with modern touch.”
Effectively though, as Libra showed, it will not be a cryptocurrency. And it is more a business consortium competitor to Venmo, PayPal, and QQ Pay, just with a user interface that looks like a crypto wallet. In terms of permissions, sign up, account freezing, or financial interest for the operators to go fractional, it is just another online banking app with a more modern feel.
Furthermore, Back has a similar opinion for the CBDC. But he thinks CBDC comparatively has a great potential than Facebook’s project Libra. In future, success chances for CBDC are greater as compare to Libra. Still, he indicated the importance of Bitcoin. He said said that it has “self-sovereignty” that gives it supremacy over the current under-development projects.
Companies, after all, do have a financial interest to reduce signup and usage friction experienced by users. Governments are more insulated from market competition being policy monopolies. So we’ll see how things develop in various countries. But I would think of today’s stablecoins as lacking much of the self-sovereignty properties of Bitcoin, and potential future central government-operated ones similarly.
Back recently emphasized on the fruitfulness of Lightning Network that is inclusive of the faster transaction confirmations.