Bitcoin (BTC), Cryptocurrency-With the crypto market that has put in place a small recovery during the day and trying to close the year on a positive relative note despite the bear cycle of 2018, the number one currency by market capitalization continues to be divisive.
Speaking in a interview With CNBC, published December 28, Scott Galit, CEO of New York-based payment processing company Payoneer, said that a single non-fiat global currency like Bitcoin was unrealistic.
Galit's take on Bitcoin depends more on what it considers an unattainable position for BTC to become a single unifying global currency, as some have pushed as a possibility for decentralized money. Galit admits that the idea of a non-fiat digital currency is attractive to large areas of the Internet as a way to overcome the international transaction barriers, but considers unrealistic application,
"Despite the interests of many people out there in the Internet world who love the idea of frictionless trade and frictionless money and avoiding legal currencies, I do not see it"
In particular, Galit cites the improbability that the US government accepts BTC for taxes due to the extreme volatility of cryptocurrency prices. As outlined by Galit, the US government exposed itself to an exchange rate that fluctuated up to the degree of BTC, a result that would never have made its way through the Congress,
"Now you could discuss whether taxes are right or wrong or anything else, but they are a reality, there will be taxes because governments need revenue," says Galit. "Countries actually need tax revenue to finance services for their residents".
In November, Ohio became the first state allow taxes to be paid in Bitcoin, starting with businesses and increasing availability to individual filers. However, the process involves a trading platform that converts the BTC paid into dollars, protecting the state from the aforementioned volatility of the cryptocurrency.
Galit also appeals to the Federal Reserve's responsibility to maintain control over the nation's fiat, a source of leverage that would become useless if BTC becomes a dominant currency,
"The central bankers are there to actually help manage the economies and provide some sort of responsible management for those economies," says Galit. "Part of this is actually currency management in interest rates [for lending] and in exchange rates. If you do not really have any control over a currency, you've lost one of the main policy tools you have, so what do you do? "
Galit's comments arrive only a week after Yahoo Finance named Square payment platform as their company of the year. Square, founded by Twitter CEO Jack Dorsey, began offering Bitcoin as a trading option in November 2017, with the company that has pledged throughout 2018 to push functionality as a legitimate division of the own service. In November, Square announced that third quarter BTC-based revenues rose steadily to $ 43 million, up from $ 37 million in the previous quarter.
Dorsey, who also chairs as CEO of Twitter, a social media platform will likely feel the pressure to enter cryptocurrency following Facebook's ties with rival stablecoin– He has long been a vocal in his support for Bitcoin. In March, Dorsey canceled the titles stating that he believed that Bitcoin could become the single currency in the world, catalyzed by the adoption of the Internet,
"In the end the world will have a single currency, the internet will have a single currency, I personally believe it will be bitcoin"