
Can Crypto be seen as real money? Thiago Prudencio—SOPA Images/LightRocket/Getty Images
Coinbase is adamant that cryptocurrency is the “money of tomorrow,” a form of payment that is more efficient, transparent, and fair. But not everyone agrees.
At the MoneyLive Summit in London, Peter Stilwell, Coinbase’s head of business development for EMEA, argued that crypto has all the characteristics of money, such as fungibility, divisibility, scarcity, security, and verification.
However, Evelien Witlox, the European Central Bank’s program director for the digital euro, sharply disagreed when she took the stage. “In our view, cryptocurrencies are not money, because there’s nothing behind them,” she said.
Witlox went on to explain that the digital euro is more stable with rates staying “roughly” the same over time, unlike cryptocurrency that is prone to fluctuation. She also said that it is important to have a very stable payment option, and that regulation is necessary to ensure that crypto investors understand the risks.
Coinbase’s Stilwell agreed with her sentiment, adding that there are still many challenges preventing crypto from becoming a major currency. He said that “clear, strong, workable regulatory frameworks” and global coordination are needed to protect consumers and help the inherently global product to flourish.
Stilwell also noted that too many people are still victims of fraud, citing a lawsuit against Coinbase where a man claimed he lost $96,000 on the site to a fraudster.
He concluded by saying that the industry needs to invest in making customers feel safe when engaging with cryptocurrencies, otherwise it will never reach widespread adoption.