Silvergate CEO: Bitcoin will not Replace U.S. Dollar

Moreover, the Silvergate chief noted that “the primary use case for Bitcoin was for nefarious activities.” As technology companies continue to innovate in the payments sector, the entrepreneur stated that firms such as Facebook’s Libra and Google’s Google Pay; “have distribution” and in comparison to traditional financial institutions, “are much better at building networks.”

In addition, Lane reiterated on the fact that while Silvergate lacked a direct link to Facebook’s Libra Association. However, he noted that his firm had close ties with the Association’s partner banks. In order to make this a reality, financial institutions such as Silvergate have targeted innovation towards expanding existing payment networks. Lane said:

“We’re not going to try to compete with the behemoths that have all the financial resources, the technical resources and the distribution.”

Bitcoin won’t Replace the U.S. Dollar

Furthermore, Lane commented on the incoming crypto-regulations. He noted that he believes that “in order to change the regulation, you need to change the law.” Moreover, Lane said that Facebook’s distrust is not a threat to Libra’s acceptance. He compared the idea to leading stablecoin, Tether, which has been successful in maintaining its market capitalization. Providing a macro perspective of the crypto-ecosystem. According to Lane:

“I don’t think that Bitcoin is going to replace the U.S. dollar. Could it (Bitcoin standard) become the reserve currency for the world and replace gold? Certainly.”