The CEO of Payoneer, Scott Galit, has said that the idea of making a digital asset like Bitcoin a single global currency is unworkable. The payment firm CEO aired his view on the matter during an interview with CNBC which took place recently.
Payoneer is a payment company which makes it possible for businesses and professionals to conduct cross-border money payment digitally, with a reach that extends to over 200 countries. The progress of the company didn’t go unnoticed as it was recognized by CNBC as the thirteenth most disruptive company this year.
The Basis of Galit’s Argument
Galit argued against frictionless commerce, the prevention of the reality of traditional currency and money with two main points which are, the concerns shown by central banks and the resistance of national governments, with the United States being the primary focus.
Making reference to the latter, he argued that since the government relied on taxes as a source of revenue generation, the highly volatile nature of digital assets like Bitcoin will make it harder for the government to allow residents to pay their taxes with it.
He stated that the financial obligations of the government would suffer if fiat currency shared the volatile nature of cryptocurrency, which would translate to residents lacking basic services from the government.
A Seamless Government-Crypto Relationship
According to CNBC, some states in the USA have become more willing to participate in the crypto industry lately, with the state of Ohio taking the lead as the first to make it possible for its residents to use Bitcoin in the payment of certain tax obligations. However, before the government can access the paid taxes, the digital asset needs to be first converted to fiat money, and this is done with a portal provided by the state with the address OhioCrypto.com.
While referring to central banks, Galit said the following:
“Central bankers are there to actually help manage economies and provide a kind of stewardship for those economies […] Part of that is actually managing currency in the interest rates [for lending] and in exchange rates. If you don’t actually have any control over a currency you’ve lost one of the major policy tools that you have, so what do you do?”
Previous reports have shown that key innovators all over the world have disagreed with Galit’s opinion. In May, the CEO of Twitter, Jack Dorsey, said: “the internet deserves a native currency.” Dorsey idea was later supported by Steve Wozniak, the co-founder of Apple.