Passport Capital CIO Says Financial Systems are Blind to Crypto’s Impact

Michael LaVere
  • Passport Capital CIO William Peets says financial institutions are blind to the deflationary impact of bitcoin.
  • Peets thinks blockchain will revolutionize finance while most continue to ignore the technology. 

Chief Intelligence Officer (CIO) and investment strategist William Peets says that financial institutions are underestimating the deflationary impact of cryptoassets. 

Peets, who is the portfolio manager for digital assets strategies at Passport Capital, believes that blockchain is a generational change technology that will continue to have profound effects on the global financial system.

In an interview with Real Vision Finance published Oct. 30, the CIO explained that current institutions are grossly underestimating the deflationary impact of cryptocurrencies such as bitcoin and are becoming ripe for disruption.

He said, 

Security issuance, tokenization of real assets, trading of those assets, custody-all those things can potentially be done in a more efficient manner with distributed ledger technology. And that shrinks the margins of the likes of a State Street or Northern Trust, or these traditional banks and incumbents, again, which is all deflationary.

He continued, 

What's going on in the macro environment as it relates to indebtedness and the amount of debt that's trading out and negative interest rates, it really starts to make you think about the current monetary system, and if that's sustainable.

Peets went on to highlight how a “large portion of the market” continues to remain blind to the influence of blockchain and crypto and will be surprised by how fast the system can change. 

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