Centralized Entities Needed To Support Crypto: Coinbase UK CEO Urges

United Kingdom CEO of Coinbase, Zeeshan Feroz argued that centralized entities such as the central banks and Facebook needed to support the crypto infrastructure.

Coming off a six-hour testimony by Facebook CEO Mark Zuckerberg in front of the United States House of Representatives Financial Services Committee in which he was unable to convince lawmakers that their concerns surrounding the launch of Facebook’s Libra were unfounded.

CNBC published on the 24^th of October in an interview with Feroz that there were two options in cryptocurrency; mainstream: central bank digital currency (CBDC) and Facebook Libra.

Silicon Valley will have less clout than Central Banks

When speaking about CBDC issued by a central bank as a digital currency spanning the US dollar or British pound, Feroz stated that it could, create usage of cryptocurrency in a way that Silicon Valley stalwarts might not be able to.

What he did not mention, however, is that the only CBDC currently to have been introduced as a global economy is the People’s Bank of China who offers the option of a digital Renminbi.

Facebook’s Libra could be another solid route to encouraging the mass adoption of cryptocurrency. He said that Libra’s currency had the potential to create payment options of a universal nature.

He admitted that it would not be an easy task as it challenges existing norms and that it was only the beginning of a lengthy process.

One of 21 companies who form part of the Libra Association, Coinbase has, in the past been put under the microscope by several law enforcement agencies the world over.

They subsequently have lost 7 high profile clients, amongst them Visa, eBay and Mastercard.

Despite this, Feroz has remained steadfast in his argument saying that once the process with Libra is complete they could pioneer a financial system that’s more open, where people can send funds globally as easily as you send an email.

Centralized Entities Before Paradise

When pushed about Libra not having the capabilities to replace institutional and governmental control, Feroz notably erred in his attitude.

Zeeshan said that changing the currency ideals of the world as it is right now into a utopia did perhaps need centralized entities.

He was however adamant that people cannot simply buy crypto if no centralized business exists who maintains those relationships with banks.

He believes that centralized businesses have their place supporting the crypto environment. Regardless, his confidence in the system does rely on the fact that part of that environment needs to be decentralized.