According to Paxos CEO, Bitcoin will not be used for payments anytime soon

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In an interview with CNBC’s ‘Squawk on the Street’ on Jan. 19, Paxos co-founder and CEO Charles Cascarilla predicted that institutional appetite will alter dramatically in 2022.

“The amount of interest and the amount of mainstream adoption that I see coming is tremendous,” he said before adding that changes in price do not equate to changes in fundamentals.

When asked if additional crypto assets such as Bitcoin or Dogecoin will be utilized as payments this year, he sounded pessimistic. People want dollars, he added, and they want to pay for things in dollars.

“Money is a product, and it just hasn’t moved fast enough with how our lives have changed,” Cascarilla continued, adding that this narrative is why stablecoin usage has risen. Stablecoins have a total market valuation of $173 billion, up more than 400% in the last year.

“Do people want to use Bitcoin and Dogecoin to buy things? I’m not sure, I think a lot of what that is about is owning an asset that’s going to go up … its not really money today, dollars are money.”

Stablecoins fixed to the dollar will be controlled and used to buy ordinary goods and services, with BTC being “probably improbable” to be used in the same way.

The CEO of a stablecoin company, on the other hand, is likely to be more enthusiastic about his own product than a decentralized competing payment option.

Paxos is the ninth most popular stablecoin, with only 1 billion in circulation and a stablecoin market share of 0.6 percent.