In a webcast on Thursday, Sheena Shah, a lead cryptocurrency strategist at Morgan Stanley, warned that as crypto continue to challenge the US dollar’s dominance, they may eventually become a currency. As consumers and businesses continue to conduct more transactions in cryptocurrencies, the crypto industry has begun a cycle of greater stability and popularity.
Sheena Shah, Morgan Stanley’s lead cryptocurrency strategist, feels that crypto has already begun to become a currency as consumer and business demand grows, eroding the US dollar’s worldwide dominance. Crypto critics argue that, due to their volatility, goods and services cannot be quoted in cryptocurrencies such as Bitcoin. Cryptocurrency prices, on the other hand, may begin to stabilise as more people use them to buy daily products and services. She claims that the cycle of crypto stability and popularity has already begun. To qualify as a currency, cryptocurrency payments must be simple, taxable, and part of foreign reserves.
Many cryptocurrency organisations and exchanges have produced crypto cards that are linked to the Visa and MasterCard payment networks, allowing users to pay in cryptocurrency with ease. The cards are accepted all across the world. Visa said that its crypto-related cards handled $2.5 billion in payments in 2021. Furthermore, crypto and financial services organisations are forming relationships with retailers in order to execute simple and inexpensive transactions.
Some municipal and national governments have passed or proposed legislation that would allow residents to pay taxes using cryptocurrencies such as bitcoin. After adopting Bitcoin legal tender in 2021, El Salvador had already accepted tax payments. Rio de Janeiro, Brazil’s largest city, recently declared that bitcoin payments for taxes will be accepted beginning in 2023.
Do you agree with Sheena’s thoughts? Comment below.
Read more: JP Morgan becomes the first bank to launch a virtual “Onyx lounge” in the metaverse
