Bitcoin is the ultimate crypto, Blockstream CEO

Blockstream CEO, Adam Back, admits in an interview with Cointelegraph that for him, there is no other asset more significant than the crypto king itself. Per him, no other cryptocurrency, stablecoins, or central bank digital currency come close to matching Bitcoin’s value. 

Adam Back and Bitcoin go back a long way, and being one of the early investors in Bitcoin; it’s only natural that he has only good things to say about the asset, which played a crucial role in his firm’s success. In August, Blockstream unveiled a massive Bitcoin mining facility in Quebec, Canada, that potentially addressed the concerns surrounding centralization of this sector. Besides, he invented the hashcash proof of work system and was one of the few speakers to speak at length about the positive use cases of blockchain and Bitcoin at the G20 summit in Japan.

At the G20 meetings, Back, who is known to take a rather bold stance, did not hesitate to speak about how blockchain can outshine most traditional banking activities, rendering them obsolete, while sitting next to Dutch central bank’s president. Since then, Japan’s Financial Services Agency has commended Back for his outspoken approach blockchain and cryptocurrencies.

Blockstream CEO discusses China CBDC and Facebook stablecoin project

This time, he was questioned about his stance over one of the most talked-about digital currencies, the Chinese central bank-backed digital currency (CBDC). However, he dismissed the whole idea of a central bank-issued digital currency stating that decentralization and sovereignty are what make Bitcoin stand out. 

According to him, blockchain is about uncensored and permissionless usage that separates currency from the state. If there is a central bank backing it, the traditional establishment interests reflected in operation may make it unappealing to users. And as far as stablecoins are concerned, they may see some potential in crypto trading. However, they will always end up falling short of Bitcoin as they have custody risk associated with them, he explained.

Talking about another subject of prolonged discussions among government entities and private firms, Back said that Facebook’s project Libra has little to do with cryptocurrency. It is a payment facilitating app with a modern twist, he claims.

Fundamentally, Back added, Libra is not a cryptocurrency but more of a business consortium that presents competition to other payment apps like Paypal, and QQ Pay. Given the fact that it needs permissions, account sign-ups, and a user interface, it makes Libra an online banking app with a cryptocurrency wallet feel to it, Back justified.

That said, he also mentioned that China CBDC probably has more chances at success than Facebook. Reducing the trouble of sign up and usage friction does work in favour of companies, Back explained. However, governments, unlike private firms such as Facebook, do not need to worry about market competition and rivalry, thus giving them an advantage. However, in the end, it is only Bitcoin that comes out at the top because of its self-sovereignty properties, Back declared.

Back concluded the interview by pointing out the importance of auditable blockchain. According to him, blockchains find value in being publicly verifiable; otherwise, users cannot tell the difference between organizations working on databases behind a firewall and those using blockchain.

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