Horizon Labs Executive Says CBDC Development Could Be A Double-Edged Sword For Bitcoin

Co-founder and chief operating officer of Horizen Labs, Dean Steinbeck, stated that central banks' interest in developing central bank digital currencies could either draw awareness to the crypto industry or create regulatory hurdles for the space in an interview with CoinTelegraph.

Steinbeck went on to say that a healthy digital asset ecosystem could potentially expand financial inclusion and help create more efficient markets. He added that it is unclear how the issuance of CBDCs will affect Bitcoin but offered two scenarios. Bitcoin was meant to operate outside of government agendas, but if governments decided to issue a CBDC and wanted people to use that instead of Bitcoin they could pass regulatory barriers for crypto use. 
On the other hand, Steinbeck said, the issuance of CBDCs could draw more attention to the crypto industry allowing the space to grow. 

“I believe the collective awareness of censorship — among many other variables — bodes well for the future of cryptocurrency,” Steinbeck told CoinTelegraph. “Broader awareness of the benefits of digital currency, like CBDCs, also has the potential to expose more casual users to the world of crypto.”

By Emily Mason

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