As the cryptocurrency world churns, it’s easy to speculate that digital assets could outpace, outperform, and oust the dollar in importance. But one leader from a legacy bank isn’t worried that the new currency will do any of that for the foreseeable future.
Vince has plenty of wisdom and insight about currency, courtesy of his long career in the financial services industry. Prior to taking over BNY’s CEO role in 2022, he spent nearly three decades at Goldman Sachs — rising from a trader to chief risk officer.
Equally impressive is the rise that cryptocurrencies, or digital assets, have enjoyed over the past decade. Crypto evangelists sing its praises for being a decentralized form of currency and free from the government’s ability to set its worth or control its flow.
In the political arena, former president Donald Trump has been more enthusiastic about crypto, even expressing aspirations to become a “crypto president.”
Former GOP presidential candidate Vivek Ramaswamy told Sozzi in a recent interview that Bitcoin could partially drive Fed policy. He added that Trump would be a friend to the crypto faithful if he retakes the White House.
Crypto now has a market cap of $2 trillion, with bitcoin, its darling currency, making up $1.4 trillion.
In 2024, the US Securities and Exchange Commission approved the first bitcoin and ethereum ETFs, making way for more institutional investment in the assets. Despite wild volatility, bitcoin prices are up nearly 30% on the year.
Tie all this together, and it makes sense pundits would say the dollar’s role in the world is on the shot clock.
Vince is candid about its potential.
The opportunity is there through the technology and blockchain distributed ledger, alongside “the ability to take certain assets and represent them on those types of ledgers as a digital asset,” he said.
However, crypto still has its limitations. “Whether or not an individual wants to put all their money in a particular coin is a slightly different thing,” he said.
Vince does view cryptocurrency as a way for BNY to evolve as it looks to maintain its innovative DNA.
“The way we treat and make the dollar work efficiently and effectively in the world’s financial system is going to evolve,” said Vince.
