The regulatory demands on cryptocurrencies were a central theme at the World Economic Forum in Davos held last week: financial institutions and organizations from around the world remain wary of this sector, and while inviting more industry discipline, they are also questioning on how future regulation could impact on this asset class.
Moreover, this growing expectation is also leading to a stalemate in some linked segments. The governments of many countries in the world have for some time showed their intention to legislate and regulate cryptocurrencies, and it seems that the major banks and finance companies are waiting things to become clearer before entering the market in a convincing way.
It is to be noted how the moves are rather uncoordinated. Countries such as Russia are moving forward towards the creation of their “state” cryptocurrency, which can be centrally controlled (and therefore has little to do with the current bitcoins). Others, like Venezuela, have instead been substantially forced to launch alternative assets also to try to keep inflation at bay.
Talking with RT at the WEF in Davos, Universa’s CEO Alexander Borodich said that governments are eager to release their virtual currencies, to be supported with commodities such as oil. But how? “From my point of view – said Borodich – they will offer cryptocurrencies at the national level as” cryptoruble “or” cryptopetrol “going so to use crude oil or other natural resources as assets to” tie “to the virtual” . The CEO then added that 2018 could be the right year to witness the emerge of these cryptocurrencies, thus challenging the domain of Bitcoin and other popular virtual currencies.
Despite the best intentions by qualified, reliable and honest teams, a feeling of great skepticism towards cryptocurrencies remains in the market. And, to be aware of this, it is sufficient to take a look at recent statements by US Treasury Secretary Steve Mnuchin, who has expressed concern about applying greater effort, with the aim of preventing cryptocurrencies being used for illegal trade.
“My number one focus on cryptocurrencies, whether they are digital currencies or Bitcoin or anything else, is that they are not used for illegal activities” – said Mnuchin, showing to be more fearful of the negative aspects, rather than optimistic about the innovations that these assets are making.
“We encourage fintech and encourage innovation, but we want to make sure that all our financial markets are safe. We want to be sure that the rest of the world – and many of the G20s are already proceeding along this path, with the same regulations “- he added.