Crypto may be crashing government parties across the globe, but Big Tech? It’s just not ready.
Microsoft shareholders just voted against adding Bitcoin to the company’s treasury. Even a sales pitch from Bitcoin hype man Michael Saylor couldn’t sway them. Bitcoin’s volatility was just too much to stomach.
Amazon’s shareholders have actually urged the company to hold a minimum of 5% of its assets in Bitcoin. But there’s no delivery on that yet. Other Big Tech members (Google-owner Alphabet, Meta and Apple) have also stayed clear of crypto.
While Big Tech dithers, incoming US president Donald Trump has promised to set up a strategic US Bitcoin reserve. Russia and Brazil are mulling similar moves. Around the globe, governments are thinking about how to regulate digital assets. Crypto ETFs are real and more fintech and payment companies are figuring out how to integrate crypto into their business.
So what gives?
What’s HODLing Big Tech back
Volatility aside, the rules for crypto in the US are still not clear enough for Big Tech to make a play, experts say.
The scrutiny Big Tech is already facing in the US over antitrust and other concerns also makes a full embrace of crypto a riskier play than it seems.
“Big Tech will move but right now it is rightfully being very cautious because regulations are not clear,” Blockchain firm Tassat’s chief product officer and former JP Morgan banker Glendy Kam, tells MONIIFY.
These firms also answer to shareholders who typically value stability over risk, explains Iliya Kalchev, Dispatch analyst at crypto firm Nexo.
Pair that with operational and reputational hoops, and Bitcoin on the balance sheet feels like a moonshot right now.
Waiting for a hug
But when that embrace finally happens (and it will)… the impact will be huge.
Take a look the last year alone. Bitcoin’s earlier highs this year were fueled by TradFi players like BlackRock jumping in. Within weeks of them winning approvals for their spot Bitcoin ETFs in January 2024, BTC hit record highs.
TradFi’s handshake, short of a full embrace, has been followed by financial watchdogs taking a more tolerant view of crypto.
In just the past few days, New York’s financial regulator has approved Ripple’s RLUSD stablecoin, and the UAE has given approvals to Tether and Circle, the world’s largest and second-largest stablecoins.
But a big hug from Big Tech could legitimize crypto in a way that no number of regulatory approvals can. It would not only bring soaring crypto prices, but more legit innovation, and, crucially, a higher degree of trust from the public.
Missing the boat?
The trepidation isn’t new but with Bitcoin smashing the $100K milestone on the back of Trump’s win (Fundstrat Capital says the OG crypto will touch $250K in 2025) are major tech companies missing an opportunity to buy in… again?
It will be “mighty helpful” for everyday consumers if legacy institutions adapt and adopt as it will mean faster deployment of practical applications for digital assets, XChain Managing Director Haydn Jones tells MONIIFY.
As it stands, with the cool kids of Big Tech still not sold on crypto, the industry’s journey from the odd one out to mainstream will be gradual.
