In the world of cryptocurrency, well-known investor and financial commentator Jim Rogers shared his opinions on cryptocurrencies, particularly on the role of Bitcoin (BTC) as a government-backed currency.
Bitcoin Not a Threat
According to Rogers, despite Bitcoin’s current growth, its main feature is being defined as a trading tool, and therefore it is not in a position to be considered a threat to governments in terms of replacing existing currencies.
During an interview with Kitco News on January 31, he said:
If crypto becomes a threat to their currencies, governments will probably do something, but so far it’s not a threat. It’s just a trading tool.
The investor, who believes that the likelihood of governments accepting Bitcoin alongside existing currencies is low, also highlighted his concerns about the potential competition between current monetary systems and Bitcoin.
At the same time, the investor, who also had a dismissive attitude towards Bitcoin, downplayed the global impact of BTC and emphasized that the adoption by El Salvador was not significant enough:
I don’t see cryptocurrencies becoming money because governments don’t want this competition. We see Bitcoin being accepted more, but I don’t think it’s a legitimate currency anywhere yet, except maybe El Salvador. But there are only six million people in El Salvador. I don’t think it will change the world.
In Rogers’ comments about the future, there were statements suggesting that cryptocurrencies, especially CBDCs, would likely be rapidly adopted by many governments globally:
I hope that eventually currencies will be on the computer, much more efficient, cheaper, better for many people and governments.
Trump’s Approach to Bitcoin
On the other hand, Jim Rogers reiterated his concerns about CBDCs, due to the ease with which governments could access detailed information about individuals’ financial activities.
This concern expressed by Rogers followed the statements made by former U.S. President Donald Trump regarding his stance on CBDCs if he were to win a potential presidential election. Trump pledged that he would not allow a digital currency that could violate freedoms if re-elected:
I will fully support the Second Amendment. I will never allow the creation of a central bank digital currency that could rob your money. We will protect innocent life and restore freedom of speech.
Meanwhile, Bitcoin was also experiencing a price decline. At the time of writing, Bitcoin was trading at $42,750, down 0.38%, and had lost the critical $43,000 level again.
