Dawn Fitzpatrick, Soros Fund Management chief information officer, said that Bitcoin (BTC) may once have been seen as a fringe asset. However, the inflation of the US dollar has changed all that. Soros Fund Management’s CIO said that bitcoin is not on the fringes anymore due to the debasement of the dollar in the last 12 months.
Speaking to Bloomberg, she said that her firm had recently started to take an interest in BTC. Fitzpatrick added:
“We think the whole infrastructure around crypto is really interesting, and we’ve been making some investments into that infrastructure — and we think that is at an inflection point.”
This inflection point is coming due to fiat inflation that has seen the US dollar money supply surge by 25% in the past year alone:
“I think when it comes to crypto generally, we’re at a really important moment in time, in that, something like Bitcoin might have stayed a fringe asset, but for the fact that, over the last 12 months, we’ve increased money supply in the U.S. by 25%.”
Soros Fund made two investments in crypto-focused projects this March alone. The first was as part of a $200M funding round held by NYDIG, while the second was an investment in crypto accounting firm, Lukka, that raised $53 million on March 25.
Bitcoin Could Be A Viable Solution
The fund’s confidence in bitcoin and its related technologies seems to be equally matched by its distaste to acquire more fiat inflation, which the executive says there is a real worry:
“So there’s a real fear of debasing fiat currencies. And when you think about Bitcoin, I don’t think of it as a currency, I think of it as a commodity. But it’s a commodity that’s easily storable, easily transferable.”
Fitzpatrick briefly touched on the central bank digital currencies (CBDCs) mainly about China, which she says is moving strategically to become the first mover in CBDC technology. Nonetheless, even if China is the first to unveil a centrally issued digital currency, Fitzpatrick does not believe its effect on BTC would be too destabilizing in the long term. She concluded:
“They want that to be used around the world, and it is a potential threat to Bitcoin and other cryptocurrencies. I think it is a real threat, but I think it will be temporary. I don’t think it will be successful in permanently destabilizing Bitcoin.”