Blockchaincom CEO Peter Smith said that the US default could shake up the crypto industry.
The CEO of London-based crypto firm Blockchaincom said on May 25 that the default by the US government will trigger a pullback from cryptocurrencies at first, followed by an upward push.
Smith: 2024 Will Be An Exponential Year
Unless Congress raises the $31.4 trillion limit on government borrowing, the U.S. government could lag behind or even default on debt payments next month. This situation can bring about economic disaster and panic in global financial markets.
Speaking at the Qatar Economic Forum organized by Bloomberg, Peter Smith said that if the US defaults or goes into a recession, it could be bad for the crypto industry. Smith continued: “These are risky assets and you want to eliminate risk. In the long run, these are probably good for crypto. “If the US government defaults, we will likely see a rapid pullback in the crypto market followed by a strong upward push.”
Stating that the crypto market follows cyclical patterns, Smith said that although 2022 will be quite painful, this year the market has recovered and 2024 will be another exponential year.
However, Blockchaincom, a crypto exchange offering crypto wallet service to users, is considering expanding its small Middle East office in Dubai.
Smith: “The Dubai government is in a very healthy, consultative process with the industry and regulation. “I think as long as these end up where we think we will invest heavily in Dubai,” he said.
Smith noted that currently the company is investing most in supporting operations in Singapore and Europe.
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