Damien Vanderwilt, the co-president of Galaxy Digital, believes that security and taxes may be acting as deterrents for crypto investing.
Vanderwilt said:
“When we think about the conversations we have with corporates and institutional clients and any part of those constituencies considering investing in the sector, the first order problem is safety and are the assets that they’re buying going to be safe and available and secure.”
He added:
“The second order problem, particularly for the corporates, is tax treatment and the way that particularly under GAAP accounting in the U.S., Bitcoin is viewed as an intangible asset.”
It has been reported that “5% of finance executives” are considering Bitcoin purchases, as this 5% figure came from a report recently published by research firm Gartner by detailing February survey results from 77 finance executives.
Galaxy Digital’s Damien Vanderwilt says large companies are staying out of Bitcoin for two reasons: security and taxes. While these are problems that can be solved, it might be a while longer before more institutions ape in. https://t.co/Qy86tgT62N — Cointelegraph (@Cointelegraph) February 27, 2021
The report stated:
“Just 5% of Finance Executives Polled in February 2021 Said They Planned to Hold Bitcoin as a Corporate Asset in 2021.”
Likewise, MicroStrategy, MassMutual, Tesla, and Square have all allocated millions of dollars to Bitcoin. MicroStrategy has spent more than $1 billion on the asset and put an additional billion into BTC recently.
Thus, Vanderwilt concluded:
“They’re not unsolvable problems or things that companies can’t get comfortable with, but it does take a little bit of time.”
Source: Cointelegraph