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Horizen Labs’ co-founder says CBDCs could raise Bitcoin awareness

Central Bank Digital Currencies (CBDCs), will likely affect Bitcoin in some fashion.

Dean Steinbeck, co-founder and chief operating officer of Horizen Labs, posited that Bitcoin’s core atmosphere would remain the same on the surface.

According to Cointelegraph, Steinbeck stated that “There has recently been plenty of activity internationally with governments exploring the development of native virtual assets.” Steinbeck also works as general counsel at Horizen. He also added that “A healthy, robust virtual assets ecosystem has the potential for broader financial inclusion, more efficient markets, and so forth.”

“It’s hard to say how the growing interest behind CBDCs will affect bitcoin, or cryptocurrency in general,” Steinbeck stated, adding:

“Bitcoin was always meant to operate outside of governmental control in a peer-to-peer fashion, so on the face of things not much will change for those attracted to bitcoin on principle. However, it remains to be seen if governments will begin attempts to crack down on digital assets operating outside of whatever system they have decided is ‘correct.’”

Bitcoin is a borderless asset run by people and code, with a value untied to national currencies. On the other hand, countries will peg the value of their CBDCs to native fiat currencies, although exact specifications remain unclear at this stage. According to recent comments from Decred’s co-founder, Jake Yocom-Piatt, stablecoins tied to the value of national currencies could see impact from CBDCs in the future.

“I believe the collective awareness of censorship — among many other variables — bodes well for the future of cryptocurrency,” Steinbeck said. “Broader awareness of the benefits of digital currency, like CBDCs, also has the potential to expose more casual users to the world of crypto.”

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