Will regulated cryptocurrency become the new fiat currency?

With the collapse of FTX in November 2022 highlighting the need for regulation in the cryptocurrency industry, both lawmakers and the financial sector are asking how one can truly regulate a virtual asset, which exists only on a ledger. of blockchain without borders. Similarly, if cryptocurrencies are designed to be inherently decentralized, how can they be regulated by central agencies? As with all emerging technologies and new financial instruments, we remain caught between enabling innovation and protecting the public. Cryptocurrencies, stablecoins, and NFTs quickly went from being a fringe novelty to being widely adopted and intertwined with major financial markets, presenting policymakers with a problem they don't fully understand. With the breakup of FTX, as well as the unprecedented decline of the Terra stablecoin, 2022 saw a series of high-profile events within the cryptocurrency market that demonstrated the immediate need for significant regulatory oversight. Rival interests seek to answer questions about what we want the fundamental nature of digital assets to be. Are they securities or commodities? Should cryptocurrencies, which have no physical token, behave like the US dollar and other fiat currencies? Will the regulations end the potential of cryptocurrencies for unprecedented financial inclusion?

Full opinion: Will regulated cryptocurrency become the new fiat currency?

Will regulated cryptocurrency become the new fiat currency?

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