Crypto is likely to be integrated with the future financial system
Hong Kong Monetary Authority (HKMA) CEO Eddie Yue recently said that cryptocurrencies are likely to play a central role in the financial systems in the future, despite the recent problems in the sector.
Speaking at the G20 meetings on July 17, Yue said he did not think crypto and DeFi would go away, even after the LUNA incident. While admitting that they could be held back, Yue still promoted the benefits of the technology. He said:
“The technology and bushiness innovation behind these developments are likely to be important to our future financial system,”
Yue said successful crypto protocols could be modified to adapt to the current financial market. He also emphasized the importance of a comprehensive regulation that can support the healthy growth of this implementation.
Bitcoin as part of every portfolio
Blackrock’s former director Edward Dowd, unaware of Yue’s comments, also recently said that Bitcoin would become part of everyone’s portfolio.
Dowd also claimed that bear market conditions are not the end of crypto. However, he also differentiated Bitcoin from other cryptocurrencies and said it was likely to beat gold in the future.
He said:
“Bitcoin is here to stay. It’s going to be part of everyone’s portfolio. At least with Bitcoin you can exchange it digitally, and gold is a much tougher sell to me. I’m not against gold, and there’s no bad idea to have gold.
He likened Bitcoin to Amazon during the early days of the internet. According to Dowd, 90% of cryptocurrencies will collapse, just like 90% of online companies did in the early years of the internet. Bitcoin is like the remaining 10% of those years, which became Amazon.
Like-minded officials
Yue and Dowd are speaking the same lines as US Senators Cynthia Lummis and Kristen Gillibrand. The duo recently presented a draft bill to integrate cryptocurrencies into the financial system. The bill appoints the Commodity Futures Trading Commission (CFTC) as the crypto market regulator and aims to fully incorporate crypto into the US financial system.
Another government office that agrees with the rest is the Bank of England (BoE). The bank has been talking up the crypto sector for years, while remaining cautious about volatility. Recently, the BoE’s Deputy Governor for Financial Stability Jon Cunliffe also likened the crypto sector to the early days of the internet. He said he was confident about crypto’s future and promoted its incorporation into the financial system. However, like Yue, Cunliffe also called for a set of regulations.
