"The governments can't run unless they can run on a deficit. I am trying to figure out why they would say, 'Sounds good to me, because I want to be responsible and run everything on even-for-even basis. I can't borrow against anything.'"
Therefore, a major selling point of most cryptocurrencies, a limited supply, is an obstacle to their further adoption by state entities, according to Duffy. He further added that regulators are still wary about cryptocurrencies, as they are still a relatively new financial instrument:
"I do believe that the regulators right now are a little careful about just rubber stamping anything as it relates to crypto. You are going to have to have an offering that the regulators are going to have to get comfortable. And I think it is hard to get comfortable with something that is so new like this.”
Duffy thus reiterated his stance from a February interview with Bloomberg, when he said that major commercial banks are not likely to get involved in the market unless the governments worldwide start accepting cryptocurrencies.
Many crypto entrepreneurs and financial experts opt for stablecoins as the best use case of cryptocurrencies. For instance, the Winklevoss twins, who earlier launched their own dollar-backed stablecoin, the Gemini dollar (GUSD), believe that stablecoins and tokenized securities are the future of crypto innovation.