According to a crypto expert, it is not “unreasonable” for businesses to create and use their own cryptocurrencies. In an interview on CNBC, Blockchain Capital Limited co-founder Gavin Brown, made these comments at the Credit Suisse Global Supertrends Conference in Singapore. The key question is “will people trust that coin?” He said that, “within three hours, we could have it up and running, and when people transact with people, we could request that we do it using a particular coin.” This is a subject that is being discussed recently but it is important to note that governments are usually trusted more than some large corporations, usually.
Our opinion – think about the massive retail giants in the US, they all had cash flow and thousand of outlets to use the currency but they are now bankrupt. Sears, Mattress Firm, National Stores, Gumps and Brookstone are a few. And note, these 2018 failures. If they issued coins, these coins would be worthless.
Mr Brown made the point that in this era, companies such as McDonald`s have a higher credit rating than countries such as Ireland, so the notion that high quality companies want the to be paid in their own currencies is “not that outlandish.” It is all about having a trusted brand and that brand could be your firm or some other entity. When we buy prepaid cards from Starbucks and other firms we are actually trusting a brand and a name, and if the firm has billions in assets, this does ensure some sense of security.
Mr Brown, who is also a lecturer in Financial Economics at the Manchester Metropolitan University, has tabled some interesting ideas that, in the future may just become reality. You can find his interview on CNBC.