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Crypto is likely to integrate with the future financial system

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Hong Kong Monetary Authority (HKMA) CEO Eddie Yue recently said that cryptocurrencies are likely to play a central role in financial systems in the future, despite recent challenges in the sector.

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Yue spoke during the July 17 G20 meeting and said he doesn’t think crypto and DeFi will disappear even after the LUNA incident. While acknowledging that they could be contained, Yue still promoted the benefits of the technology. He said:

“The technology and innovation behind these developments is likely to be important to our future financial system.”

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Yue said that successful crypto protocols can be changed to adapt to the current financial market. He also stressed the importance of comprehensive regulation that can support the healthy growth of this implementation.

Bitcoin as part of every portfolio

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Former Blackrock chief executive Edward Dowd, unaware of Yue’s comments, also recently said Bitcoin will become part of everyone’s portfolio.

Dowd also argued that bear market conditions are not the end of cryptocurrencies. However, he also distinguished bitcoin from other cryptocurrencies and said that it will likely outperform gold in the future.

He said:

“Bitcoin is here to stay. It will be part of everyone’s portfolio. At least with bitcoin you can exchange it digitally and gold is much harder for me to sell. I’m not against gold, and having some gold is not a bad idea.”

He compared Bitcoin to Amazon in the early days of the Internet. According to Dowd, 90% of cryptocurrencies will collapse, as happened to 90% of online companies in the early years of the Internet. Bitcoin is like the other 10% of the years that Amazon has become.

like-minded officials

Yue and Dowd say the same as US Senators Cynthia Lummis and Kristen Gillibrand. The duo recently introduced a bill to integrate cryptocurrencies into the financial system. The bill appoints the Commodity Futures Trading Commission (CFTC) as the regulator of the cryptocurrency market and aims to fully integrate cryptocurrency into the US financial system.

Another government agency that agrees with the rest is the Bank of England (BoE). The bank has spoken fondly of the crypto sector for years, but has been wary of volatility. Recently, Bank of England Deputy Governor for Financial Stability John Cunliffe also compared the crypto sector to the early days of the internet. He said he was confident in the future of crypto and promoted its inclusion in the financial system. However, like Yue, Cunliff also called for a regulatory framework.





Credit : cryptoslate.com

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