Morgan Stanley: Spot Bitcoin ETF Approval Is a ‘Potential Paradigm Shift’ in Global Perspectives on Cryptocurrencies
15 years ago, Bitcoin was an idea that surfaced on Internet forums. With the volume of stablecoins now rivaling payments networks such as PayPal and Visa, Wall Street’s adoption of Bitcoin in the form of a spot Bitcoin ETF represents “a potential paradigm shift in the global perception and use of digital assets.” “It could mean,” said Andrew Peel, head of digital. Investment bank Morgan Stanley’s asset market.
In a note to investors, Peel provided an overview of the current threats to the US dollar’s current reign as the world’s reserve currency, as 60% of the world’s foreign exchange reserve balances are held in dollars. By comparison, China’s yuan accounts for only 2.5% of its balances, despite recent efforts to increase foreign trade.
However, Peel wrote that several “dollar devaluation” threats could erode the dollar’s top position, including the “surprising” adoption of Bitcoin globally, noting that 100 million people globally hold cryptocurrencies ( Peel claims there are Bitcoin ATMs in 82 countries). With large corporations like Tesla and the sovereign nation of El Salvador.
However, according to Peel, stablecoins could prove to be the “killer app” for cryptocurrencies. Peel points out that in recent years, stablecoin trading volume has rivaled that of traditional digital clearinghouses such as Visa and PayPal. Both Visa and PayPal have taken steps to bring about their own stablecoin adoption, with Visa integrating USDC into Solana and PayPal’s PYUSD stablecoin.
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