(Kitco News) – Individuals and institutions have different solutions when it comes to protecting cryptocurrency wallet keys, said Diogo Monica, president of Anchorage.
“It is a combination of factors. One of them is have a hardware wallet that consumers can use to store their bitcoin and do exactly that, store a safety back-up seed in paper, or better yet, in metal in a safe deposit box, either at a bank or at home,” Monica said.
On central bank digital currencies (CBDCs) that are emerging, Monica said that a country doesn’t need a reserve currency backed by a cryptocurrency for CBDCs to function.
“I think it’s two different matters, whether you want to have bitcoin as a reserve currency or if you want to have a CBDC, a digital asset that is backed by a central bank. Those are two completely distinct, and both of them can simultaneously be true. You might believe that bitcoin is not the right reserve asset and at the same time have a digital asset, so those two issues are distinct,” he said.
Monica’s comments come as bitcoin breaches $40,000 a coin for the second time in its history on Monday.
“I think that the best thing for the bitcoin price is not if it’s going up or down, but for it to be right, [and] it is for institutions to have the liquidity and the price discovery capability to ensure that we have a safe market for institutions to participate. Over the long-run, I think it’s going to go up. I think it is a digital store of value, I think people are recognizing the narrative of digital gold,” he said.
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