Bobby Zagotta, the CEO of Bitstamp USA, has recently voiced that as several investors have turned to stablecoins, there is presently a small amount of de-risking in the digital asset sector. And if there is more mainstream adoption, Bitcoin (BTC/USD) trading might soon become similar to gold trading.
How Zagotta Predicts the Future of Cryptocurrency
Bitcoin supporters usually compare the asset to gold, claiming it provides a buffer against inflation and serves as an alternative investment strategy amid financial crises. Bobby Zagotta, the CEO of Bitstamp USA, is another advocate of such a point of view.
BTC might start trading like gold, said the senior executive in a recent interview with CNBC, as the coin gains more mainstream investment. Nonetheless, the primary cryptocurrency has not yet achieved that stage of its development.
Zagotta provided an overview of the uncertainty that currently exists in the financial markets. He feels that a large number of investors are staying away from such high-risk assets as digital currencies. As a result of the continually growing prices of goods and services, the world-shaking COVID-19 epidemic, and the recent Russia-Ukraine war, investors started to invest in less volatile assets like stablecoins to reduce the risk of loss.
The CEO also further discussed the executive order of President Joe Biden on digital currencies. As he pointed out, there are millions of cryptocurrency investors in the United States, thus it is very crucial for the government to acknowledge the chance as valid and legitimate. In his view, the directive is a significant step forward in terms of transparency, which will in turn increase consumer trust.
After that, he commended Biden’s choice to embrace cryptocurrency and to elevate the United States to the position of the world leader in the industry:
“Its tone is, at least to my read, focused on innovation and competitiveness for the US. We think that is incredibly important. President Biden is not only saying that the US should accept crypto but also be a leader in this emerging global arena.”
What Endeavors Recently Made by Bitstamp
Bitstamp, whose headquarters is in Luxembourg, is one of the most important cryptocurrency exchanges in Europe. It facilitates the exchange of fiat cash and a wide range of digital assets such as Ethereum, Bitcoin, Bitcoin Cash, Litecoin, etc.
By the end of 2021, the firm made it possible for its clients to trade Shiba Inus against the US dollar and the euro on its platform. The first-ever memecoin, Dogecoin, was rejected by Bitstamp, justifying that the coin was unduly influenced by Elon Musk, the CEO of Tesla.
Earlier this year, the Luxembourg-based exchange announced its plans to expand into the realm of traditional finance by allowing its users to exchange stock trading products.
A three-year partnership with Immortals, the U.S. professional esports organization, was signed by Bitstamp last month. As a consequence, Bitstamp will become the official digital asset exchange for the gaming corporation.