Bitcoin, once a mere idea on an internet forum, has grown into the largest digital asset with a market capitalization of $840 billion. The latest milestone for Bitcoin is the green light for 11 spot Bitcoin ETFs in the United States, indicating a potential paradigm shift, according to Morgan Stanley’s Head of Digital Asset Markets, Andrew Peel.
Peel highlights the competition stablecoins bring to traditional payment networks like PayPal and Visa, suggesting that Wall Street’s adoption of spot Bitcoin ETFs could significantly alter the global perception and utilization of digital assets.
In a note to investors, Peel discusses the dominance of the U.S. dollar, which comprises 60% of global foreign exchange reserve balances. Despite China’s efforts to increase its international trade, the Chinese yuan only makes up 2.5% of global reserves, emphasizing the U.S. dollar’s lead.
However, Peel notes that various de-dollarization efforts, including the widespread adoption of Bitcoin and the involvement of major companies like Tesla and countries such as El Salvador, could challenge the dollar’s supremacy. He points out that over 100 million people worldwide own Bitcoin, with Bitcoin ATMs present in 82 countries.
Peel also comments on the rise of stablecoins, which have become formidable competitors to traditional payment networks in recent years. He speculates that stablecoins might be the “killer app” for cryptocurrency, as both Visa and PayPal have made significant moves into the stablecoin space.