Today, a news report from Reuters has mentioned, once again, that the blockchain industry continues to develop at an unprecedented speed, and that regulators need to get themselves caught up to speed, or risk behind left behind in the dust.
In fact, the report suggests that many of the world’s Central Banks are becoming increasingly worried that the ongoing development of cryptocurrencies and digital assets is threatening the very balance of the current global financial system.
Their belief is that certain cryptocurrencies, namely stablecoins, as well as the advent of other major companies like Facebook launching its own digital currency, could potentially “reduce state control over money around the world”.
Regulators Are Being Left In The Dust
Yesterday, we reported that, in a formal financial reform proposal, Michael Bloomberg, former Mayor of New York City and current presidential candidate, made many financial recommendations for helping the U.S. economy recover, and even hinted at the fact that digital currencies could play a role in preventing future financial crisis at the national and even global scale.
According to Bloomberg, “Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped.”
What Does This Mean For The Future Of The Industry?
According to the report, Randal Quarles, Chairman of the Financial Stability Board (FSB) and a Governor of the US Federal Reserve, said in a letter to the G20 financial authorities of the world that “We are resolved to quicken the pace of developing the necessary regulatory and supervisory responses to these new instruments.”
Alongside statements from presidential candidate Bloomberg, Quarles, a former U.S. Federal Reserve governor, also mentions that a group is currently working at creating policies in hopes to address the benefits and risks of stablecoins.
In their concluding statement to Quarles’ letters, the G20 responded, after their last meeting in Riyadh, Saudi Arabia last weekend, that the “risks from global stablecoins need to be evaluated and appropriately addressed before they start operation.”
And while the future of crypto still isn’t set in stone, this is, needless to say, another big step for digital currencies and the crypto industry around the world.
There’s an increasing number of world leaders stepping up and speaking out about the importance of regulation, which helps drive the point home, that crypto is here to say.