- Mark Cuban said cryptocurrencies are the future, especially as the world is recovering from a pandemic.
- The billionaire explained the two reasons he thinks the country should switch to digital currencies.
- Cuban is among the top crypto bulls and is a particularly vocal supporter of memes-based dogecoin.
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As the cryptocurrency market continues to soar – reaching $ 1 trillion in February to double its market cap in just three months – enthusiasts like Mark Cuban are increasingly calling on the world to embrace silver. digital and decentralized.
Cryptocurrencies, the billionaire said, are the future, especially as the world recovers from a once-in-a-lifetime pandemic.
In a podcast hosted by actor Rob Lowe, Cuban described the two big reasons he thinks the country should switch to digital currencies:
No more access
The billionaire investor discussed the barriers to receiving and cashing stimulus checks that many Americans face during the pandemic, whether through direct deposit or by mail. He also spoke about the number of days banks need to clear checks, highlighting the sticking points still encountered when dealing with traditional financial institutions.
“The people who needed this money the most got the most slowdowns,” he told Lowe. “If everyone had a digital bank account, with or without digital coins, the money would go like that, straight to your treasury account, whenever there was a stimulus.”
The billionaire also added that transaction costs would drop significantly with digital assets.
While the cost of producing pennies, nickels, and dimes is less than their true value, the U.S. Mint allocates billions of dollars a year to produce these coins.
For the fiscal year last year, the office responsible for coin production for the United States spent about $ 618 billion to produce all the coins combined, according to a report from Coin News.
“Then there’s just the physical processing for the retailers, which is expensive, and for the banks, which is expensive,” he said. “Then there is the sanitary side. “
There is no downside to switching to digital currency, he said. The only problem is that people resist change.
“Who wants to know what a digital wallet is or wants to take charge of creating a new type of account? ”
Read more: Fundstrat’s head of digital asset research walks us through his year-end price targets of $ 100,000 and $ 10,500 for bitcoin and ether – and shares the 8 tokens he’s optimistic about
The billionaire has long been a supporter of digital currencies. The Dallas Mavericks, which are owned by Cuba, began accepting cryptocurrency as a form of payment for bills and merchandise earlier this year. He also suggested that TV host Ellen DeGeneres allow the use of dogecoin as payment for her show’s merchandise.
Cryptocurrencies have skyrocketed in 2021 – with bitcoin up 95% year-to-date, ether up 380%, and dogecoin soaring 13,000%.
This month, a nonprofit called the Digital Dollar Project announced that it will launch at least five pilot programs to test the viability of a digital currency from a U.S. central bank over the next 12 months.
CBDCs, digital versions of banknotes, are intended to be more instantaneous and more fluid thanks to digital processing. To date, a number of central banks have explored CBDCs spurred by a rapidly growing crypto space and competition from central banks around the world.