Governments Won’t Allow Corporates to Replace Fiat with Bitcoin: Analyst

Jafrin  |  Feb 15, 2021

The government of the U.S. will not allow big corporations to replace the U.S. dollar with Bitcoin, says investment advisor Dan Nathan. In an interview with CNBC, Nathan, founder of Risk Reversal Advisors, have said that lawmakers in the United States will never allow the US dollar from falling away as the reserve currency of the world. His remarks came following Tesla's $1.5 billion investment in Bitcoin.

U.S. Government Won't Allow Bitcoin to be Replaced by US Dollar

Nathan started his interview by saying that the U.S. Treasury and the U.S. government will not let this thing get out of hand where corporates are starting to replace dollars to a large extent with bitcoin.

On being asked what the regulators could do to prevent corporations from putting Bitcoin in their balance sheets, Nathan added:

"They can regulate the hell out of it. That’s what they can do."

The investment advisor viewed that there were no more naysayers in Bitcoin:

"All these people, who are making a ton of money on both of these things, just understand that there’s got to be some sort of gravity that takes hold at some point, and the two of them combined makes for, I think, a very difficult situation if they both start going down together, and the ripple effect that we’ll see across currency markets, financial markets, and the such, could be great. No one is talking about it right now. There are no more naysayers in bitcoin."

Corporations Would Follow Tesla's Model of BTC Investment

Nathan is the founder of Risk Reversal Advisors that offers consulting services to investment banks, investment advisors, and private companies. He has prior experiences as an equity and options trader at hedge fund firms SAC, Exis, Cheyne Capital, and within the equity derivatives group of Merrill Lynch.

Following Elon Musk’s investment in Bitcoin, a host of other larger corporations will too be following the footsteps of the company behind the richest man in the world. Earlier last week, Twitter's CFO already said that the social media platform is considering adding Bitcoin to its balance sheet.

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