Paxos CEO Says BTC Won’t Be Used For Payments Anytime Soon

The Paxos CEO says BTC won’t be used for payments anytime soon and explained his reasoning for this statement, as we can see in today’s Bitcoin latest news.

In an interview with CNBC, Paxos CEO Charles Cascarilla said that there will be a lot of changes in institutional appetite in 2022. He noted:

“The amount of interest and the amount of mainstream adoption that I see coming is tremendous.”

Curious what price fluctuations in #crypto mean for the long term? As Paxos CEO Charles Cascarilla said to @CNBC @SquawkStreet this AM, volatility does not mean "fundamentals have changed." Catch the segment here https://t.co/gYw5RniBCO

— Paxos (@PaxosGlobal) January 19, 2022

When asked whether this year we will see more assets like DOGE or BTC being used as payments, he was not really optimisic. He said that people want dollars and they want to make payments in dollars. Cascarilla continued to stay that “money is a product” and it hasn’t evolved fast enough with how our lives are changing, adding to this narrative that this is why stablecoin usage has surged. The total market cap for stablecoins is about $173 billion or more than 400% over the past year. He said that the crypto assets are mainly speculators and not likely to be used as payments:

“Do people want to use Bitcoin and Dogecoin to buy things? I’m not sure, I think a lot of what that is about is owning an asset that’s going to go up … its not really money today, dollars are money.”

Cascarilla thinks that 2022 will be the year that the dollar-pegged stablecoins will be regulated and used for purchasing everyday goods and services and added that it is probably unlikely that BTC will be used as a payment method. He was however more bullish on his own product than the decentralized rival payments option. Paxos is a minnow among stablecoins and ranks 9^th with 1 billion in circulation, and a market share of 0.6%.

Tether is the industry leader with around 45% dominance though this dropped dramatically from 75% this time last year. Most of the losses rivaled Circle as USDC’s supply grew by 800% over the past year and has a 26% market share. The third biggest stablecoin by market cap, Binance USD has a circulation of 14.2 billion tokens while TerraUSD took the fourth spot with 10.7 million tokens in circulation.

Stablecoin issuer and exchange Paxos strives to get a new license to become a clearing firm with the US SEC.  Clearing firms are intermediaries in the US Securities markets facilitating payments and the transfers of the securities for exchanges. If Paxos gets this license, it will become one of the few clearing firms in the US that will join the Depository Trust Company, Options Clearing Corporation, and others.