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The
U.S. government could fall behind on its bills next month - and
even default on its debt - if Congress does not raise a $31.4
trillion cap on government borrowing, a failure that could
trigger economic calamity and panic on global financial markets.
In the short term, "a U.S. default or a U.S. recession are
probably bad for crypto. These are risk assets, and you want to
take risk off," Blockchain.com CEO Peter Smith said at the Qatar
Economic Forum, organised by Bloomberg.
"On a long horizon, these are probably good for crypto...If the
U.S. government defaults, we'll probably see a quick pull-back
and then a very strong push upward in the crypto market."
The crypto currency market has followed cyclical patterns and
while 2022 was "quite painful", it is recovering this year and
2024 will be "another exponential year", Smith said.
Blockchain.com, which offers users a crypto wallet and is also a
crypto exchange, is considering an expansion of its small Middle
Eastern office in commercial centre Dubai.
"The (Dubai) government's in a very healthy, consultative
process with the industry and about regulations...I think so
long as those end up where we think they will, we'll probably be
investing heavily in Dubai," he said.
Last September, Blockchain.com signed an agreement with Dubai's
crypto regulator Virtual Assets Regulatory Authority (VARA) and
has since opened an office and hired staff.
Currently, the company is investing most heavily to shore up
operations in Singapore and Europe, Smith said.
(Reporting by Andrew Mills; writing by Andrew Mills and Tala
Ramadan; editing by Jason Neely)
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