The president of Intercontinental Exchange (ICE) and the New York Stock Exchange (NYSE) Jeffrey Sprecher, said in an interview that Bitcoin does not have a good market structure to achieve greater liquidity and functioning at the institutional level.
In an interview for the Fortune, Sprecher emphasized the decentralization of cryptocurrencies is counterproductive for the development of a bitcoin market legalized by US financial authorities.
“Bitcoin was the epitome of a broken model that, if solved, could change the world”, is one of the phrases that stand out in the interview and confirms the Sprecher stance regarding cryptocurrencies. The financier said that there are aspects of the crypto exchanges that do not fit the parameters of the national financial authorities and do not generate institutional trust for an official exchange.
Sprecher pointed out that markets like Coinbase – from which ICE acquired bitcoins as an experiment a few years ago – and Gemini work under a group of laws and licenses, but have nothing in common with the traditional markets.
He explained that the financial authorities, such as the United States Commodities and Futures Commission (CFCT) and the Securities and Exchange Commission (SEC), have not reached an agreement on the legal sense of cryptocurrencies in the United States.
Sprecher considers a necessity to create a market with robust regulations for Wall Street’s and Main Street investors to participate in the crypto sector.
In his opinion, the difficulty of exchanging cryptocurrencies, volatility of prices and the lack of intermediaries also limits the possibility of creating regulated exchanges with insurance and settlement services, elements that are also worsened by the low speed of transactions on the Bitcoin blockchain.
Due to all these drawbacks and the inability to create a legalized market for cryptocurrencies, Kelly Loeffler, who is now CEO of the new marketing platform Bakkt, owned by Jeffrey Sprecher, stated:
“People in large institutions have the vision that cryptocurrencies could be unpleasant actors acquired by means of obtaining.”
However, Sprecher said at the end of the interview that Bitcoin “has the potential to become the world’s first currency”, a premise that further drives the adoption of cryptocurrencies in the stock market. According to him, this has motivated him to find a way to insert the crypto assets into its financial vision, despite the decisions which SEC has taken during the last weeks regarding the of Bitcoin ETFs.
Similarly, he noted that crypto has captured the attention of younger generations, who are increasingly less motivated to participate in traditional finance.
“Millennials do not trust traditional financial institutions. To win their trust, banks, brokerage firms and asset managers can use a currency in which millennials believe, such as bitcoin.”
ICE is the second owner of financial exchanges in the United States, followed only by the CME Group. The platform has 12 exchanges attended by six clearinghouses.
Sprecher owns assets in the leading platform for medium-sized companies, NYSE American, and in the world’s largest market for ETFs, Arca. Sprecher is also present in the oil market.