In a recent interview, renowned investor and financial commentator Jim Rogers shared his perspective on the role of cryptocurrencies, particularly Bitcoin (BTC), in relation to serving as government-backed currencies. Rogers emphasized that while Bitcoin has seen significant growth, its primary role remains that of a trading vehicle and does not pose a substantial threat to existing monetary systems.
According to Rogers, governments are unlikely to recognize Bitcoin as a legitimate currency due to concerns about its competition with established fiat currencies. Despite the increasing acceptance of Bitcoin in various industries, Rogers cited El Salvador’s adoption as a limited example of its global impact, given the country’s relatively small population.
Bitcoin as a trading vehicle, not a currency
Jim Rogers, an experienced investor with decades of market expertise, expressed skepticism about the idea of cryptocurrencies like Bitcoin replacing traditional government-backed currencies. He argued that governments are reluctant to embrace cryptocurrencies as legitimate currencies due to their competitive threat to existing monetary systems.
“I don’t see cryptocurrencies becoming money because the governments do not want that competition. We have Bitcoin being accepted more, but I don’t think it’s a legitimate currency anywhere except maybe in El Salvador. But El Salvador only has six million people. I don’t think that will change the world,” Rogers stated during the interview.
While Rogers believes that cryptocurrencies like Bitcoin may not become widely recognized as currencies by governments, he anticipates the rise of digital currencies, especially central bank digital currencies (CBDCs). He suggested that many governments worldwide may eventually embrace CBDCs due to their efficiency and cost-effectiveness.
“I fully expect that eventually, currencies will be on the computer; it’s much more efficient; it’s cheaper, it’s better for many people and governments,”
Rogers added.
Concerns about CBDC surveillance
Jim Rogers expressed reservations about the potential surveillance capabilities associated with CBDCs. He highlighted that governments would have access to detailed information about individuals’ financial activities if CBDCs were widely adopted.
This concern arose in the context of former US President Donald Trump’s comments about the possibility of the United States adopting a CBDC. While CBDCs offer numerous advantages, including faster transactions and reduced costs, the trade-off may involve increased government oversight and monitoring citizens’ financial transactions.
