Skeptical Payoneer CEO Dismisses Idea of Single Currency Like Bitcoin as Unrealistic
Payoneer chief executive officer Scott Galit has ignored the idea of a single global currency like bitcoin as unrealistic. Galit contended that he doesn’t believe countries such as the U.S. will ever allow citizens to pay taxes in bitcoin due to an excessive amount of volatility in the price of this cryptocurrency.
As one international currency, bitcoin is viewed as key to ending deliberate currency manipulation, eliminating trade fees and improving transparency in global pricing, among other uses.
“Regardless of the pursuits of lots of people out there in the Internet world that love the idea of frictionless commerce and frictionless money and avoiding fiat currencies, I don’t see it,” Galit was quoted by television network CNBC as stating. He was responding to questions on whether the concept of a future single global currency was feasible.
Galit said the bitcoin price volatility means that government money would be subject to the electronic asset’s exchange rate changes — so unstable if that were to occurr into fiat money, government would be in danger of defaulting on its financial obligations. For that reason, he asserts, a government such as the U.S. will draw no tangible benefit from adopting bitcoin in its own operations, less a tax settlement currency.
BTC has lost more than 80 percent of its value since its December 2017 all-time-high of nearly $20,000, at a recession that has shaken the cryptocurrency down industry to its core.
“Now you might have a discussion whether taxes are unfair or fair or whatever but they’re a reality,” explained Galit, who heads the New York City-based Payoneer, a worldwide payments startup voted one of CNBC’s most tumultuous emerging businesses for 2018. “There will be taxation because governments need revenues. Countries actually require tax earnings so as to fund services for their residents,” he added.