Seamus Rocca, CEO of Xapo Bank, emphasised Bitcoin’s potential as a reserve currency amid economic uncertainties during an interview with Benzinga. He highlighted Bitcoin’s decentralized structure and finite supply as critical advantages for investors, especially in emerging markets suffering from tariff impacts. Despite regulatory challenges, he remains optimistic about Bitcoin’s trajectory and its role in integrating crypto with traditional finance.
In a recent interview with Benzinga, Seamus Rocca, the CEO of Xapo Bank, stressed the increasing importance of Bitcoin as an alternative reserve currency. He claims that amidst economic instabilities and capital control concerns, Bitcoin’s decentralised nature and finite supply could serve as effective hedges. This is particularly pertinent for emerging markets where financial systems often fail under pressure from policies such as tariffs.
Rocca pointed out that the growing geopolitical and financial complexities have undermined traditional safe-haven investments like U.S. Treasuries. He noted Bitcoin’s historical resilience, asserting that despite initial downturns, the cryptocurrency has demonstrated a quicker recovery than stocks following recent market shocks driven largely by global trade uncertainty.
During the conversation, Rocca highlighted that “in a world where stock markets crashed, yes, the Bitcoin price went down because of all the uncertainty. But Bitcoin bounced back faster than any of the stocks did.” This statement underscores the credibility that Bitcoin is earning as a reliable store of value amid market turmoil.
Additionally, the CEO indicated that Bitcoin can act as a safeguard against currency devaluation, particularly as emerging markets grapple with economic turbulence caused by shifting tariff policies. “Here’s an asset that is not controlled by any government,” Rocca explained, praising Bitcoin’s independence and structural limitations which prevent overproduction.
Xapo Bank, originally a Bitcoin wallet services provider, has evolved into a regulated private bank in Gibraltar focusing on high-net-worth clients and long-term Bitcoin holders. They provide secure custody, borrowing against Bitcoin, and yield generation strategies, unlike crypto exchanges that lean towards speculative trading. Rocca also pointed out that around 25% of Xapo’s customers are over 50, reflecting a desire among older clients for more stable investment options.
Nevertheless, Rocca warned that Bitcoin’s volatility and the fragmented regulatory landscape, especially in the U.S., present ongoing hurdles for its adoption as a reserve currency. The lack of a cohesive federal regulation complicates operations for crypto banks, which often find themselves navigating a patchwork of state laws. “If I get a license in New York, why does that not apply to all the other states?” he questioned, calling for more streamlined regulations to ensure growth without stifling innovation.
Despite these obstacles, Rocca expressed confidence about the future of Bitcoin. He mentioned Xapo’s commitment to maintaining robust security standards, emphasising the importance of safeguarding client assets amid increasing digital risks. This stands in stark contrast to the potential pitfalls of self-custody which can lead to major losses with even minor mistakes, particularly as Bitcoin’s value is expected to continue its rise.
Critics of Bitcoin, however, still voice concerns regarding its price volatility and the lack of consistent regulatory frameworks, especially in markets vulnerable to economic insecurity. Furthermore, the challenge of integrating Bitcoin into conventional banking remains, with many large institutions holding back due to competition fears and trust issues with decentralised systems.
Xapo’s approach reflects a widening institutional interest in Bitcoin which has been bolstered by successful Bitcoin ETFs launched by firms like BlackRock and Fidelity. Rocca foresees crypto banks like Xapo as pivotal in linking traditional finance with decentralised financial assets, bringing services that cater to those looking to cultivate generational wealth. “My view, this is what we’re betting Xapo on, is that people will eventually take a long-term view of Bitcoin as a reserve currency,” he stated, reaffirming the bank’s mission going forward.
