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Sheena Shah, lead cryptocurrency strategist at Morgan Stanley, in a podcast on Thursday, said cryptocurrencies could start to become a currency as it continues to challenge the dominance of the US Dollar. Crypto has begun a cycle of increased stability and popularity, as consumers and businesses continue to conduct more transactions in cryptocurrencies.
Morgan Stanley’s Sheena Shah: Crypto Could Become a Currency
Morgan Stanley’s lead cryptocurrency strategist Sheena Shah believes crypto has already started to become a currency as rising interest among consumers and businesses erodes the US dollar’s global primacy.
In Morgan Stanley’s “Thoughts On The Market” podcast, Sheena Shah said:
“Consumers and businesses are increasingly wanting to transact in cryptocurrency. Maybe most are simply wanting to trade the value of the asset, but as it becomes easier to transact in crypto and legal structures are defined, cryptocurrencies could start to become currency.”advertisement
Crypto skeptics say goods and services cannot be quoted in cryptocurrencies like Bitcoin, mainly because of their volatility. However, crypto prices could begin to stabilize as everyday goods and services purchases begin to be made in cryptocurrencies.
She asserts that the cycle of increased crypto stability and popularity has already started. In order to qualify as a currency, paying in cryptocurrency needs to be easy, eligible for paying taxes, and should be part of foreign reserves.
Many crypto companies and exchanges had issued crypto cards linked to Visa and MasterCard payment networks that make paying in crypto easily. The cards are accepted globally. In 2021, Visa reported handling $2.5 billion worth of payments with its crypto-related cards. Moreover, crypto companies, as well as financial services companies, are establishing partnerships with merchants to conduct easy and cheap transactions.
Some local and national governments have introduced or proposed laws to allow their residents to pay taxes with cryptocurrencies like bitcoin. El Salvador had already accepted tax payments after making Bitcoin legal tender in 2021. Recently, Brazil city Rio de Janeiro announced to allow cryptocurrency payments for taxes starting in 2023. In the U.S., Colorado and Florida have announced proposals to accept crypto for taxes amid the growing crypto adoption.
IMF Sees Rising Crypto Adoption
On March 31, IMF’s first deputy managing director Gita Gopinath warns of rising crypto adoption and declining dominance of the U.S. Dollar due to the Russian-Ukraine war.
Now, Morgan Stanley’s Sheena Shah has joined BlackRock CEO Larry Fink in believing that crypto adoption is rising amid its growing popularity.
“Cryptocurrencies are beginning the long journey of challenging US dollar primacy, and the president’s recent executive order on digital assets shows little sign of regulators getting in their way for now.”