Financial institutes and governments are slowly opening up to cryptocurrencies and blockchain technology. A commissioner from the CFTC believes crypto is going to get bigger because companies around the world leverage crypto-assets. On top of that the CEO of Moneygram believes that crypto ‘could be disruptive to cash markets’.
Moneygram has been experimenting with Ripple Labs’ XRP token. They use the token for moving value across borders. In an interview with Gulf Business CEO Alex Holmes also points out the lack of liquidity that Ripple has. On the other hand Moneygram has piles of cash stashed all around the globe. This is their way to speed up money transactions. Moneygram embraced crypto, but Holmes understands that this is difficult for governments.
“If cryptocurrency can translate into fiat currency, it can be disruptive to cash markets. Most governments understand that, but most governments fear that too. As much as governments don’t like having cash in the system, they’re also worried about crypto which isn’t a currency of their country – a scary thought for central banks and governments who wonder how can they control and run a country if they don’t have control over their currency.”
Alex Holmes, interview Gulf Business (Saturday September 14th 2019)
Brian Quintenz, commissioner for the U.S. Commodity Futures Trading Commission (CFTC), seems to agree with the ideas of Holmes. Speaking to television channel CNBC the commissioner said that the cryptocurrency industry will continue to grow. This in turn will create new challenges for the regulatory body.
I think it’s just going to get bigger. I think as more established companies get into cryptographic products, whether they are centralized or decentralized, I think you will see the appeal of all crypto-assets increase across the globe.
Brian Quintenz, commissioner CFTC, on CNBC (Thursday September 19th 2019)
Financial institutes & governments love hate crypto
Even though we see some positive notes in this article, there are also plenty of naysayers. People, companies, institutions and governments have their roots tied into fiat money and perhaps gold. Giving space to crypto means that their current strengths lose their power. Governments fear the anonymity of cryptocurrencies, but they sure want to be able to observe all transactions on a blockchain. It’s not without reason that Japan is regulation everything, while banning privacy coins.
Many governments are already busy with blockchain technology. The Turkish government is going to use it for the administration of land, academic certificates and customs. The Marshall Islands is even getting its own crypto currency, while China has similar plans.
Also published on Medium.