Jeremy Siegel, a prominent professor at the Wharton Business School and chief economist at WisdomTree, recently expressed significant concerns regarding Bitcoin’s potential to emerge as a formidable competitor to the U.S. dollar, particularly in its role as the world’s primary reserve currency. During an interview with CNBC, Siegel described Bitcoin as “a threat” while discussing the implications of the GENIUS Act, which was passed on July 18 with bipartisan support. This legislation aims to establish a comprehensive regulatory framework for stablecoins.
In his remarks, Siegel emphasized that Bitcoin is not just a competitor to traditional currencies like the euro, but is increasingly positioning itself as a serious contender against the U.S. dollar. He also acknowledged that while U.S. lawmakers are actively pursuing regulations for digital assets, some elements of the proposed crypto bill could benefit the industry. The last-minute additions to the bill, according to Siegel, represent crucial catalysts that could help modernize the financial system.
Historically, Siegel had downplayed the notion of BRICS nations posing a significant threat to the U.S. dollar, but he noted a shift in this perspective, acknowledging that these emerging economies could indeed challenge dollar supremacy. He criticized the current global financial system for being stagnant, describing international financial transactions as excessively slow and costly. Siegel posited that crypto-based solutions could improve the speed and efficiency of these transfers.
Outside of its function as a transactional currency, Siegel referred to Bitcoin as “digital gold,” a term often employed by investors looking for a hedge against inflation, especially amid the instability of the global trade landscape. With a capped supply of 21 million coins, Bitcoin offers a unique characteristic that distinguishes it from fiat currencies, which can be printed at will by central banks, undermining their value.
In addition, Michael Sonnenshein, the CEO of Grayscale, noted that the significant fiscal stimulus measures implemented in recent years have led investors to reassess what constitutes a viable store of value. He indicated that growing inflation concerns are prompting more individuals to consider Bitcoin as a protective asset for their investment portfolios.
In summary, both Siegel and Sonnenshein highlight a growing perception of Bitcoin as not merely a speculative asset, but as a legitimate competitor to traditional currencies, particularly in an era characterized by economic uncertainty and inflationary pressures.
