Digital assets are growing increasingly more popular, and soon enough will be adopted into the mainstream. This rapid rise in popularity is keeping the international regulatory agencies on edge.
Various experts including Stefan Ingves, the governor of Sweden’s central bank Riksbank, have commented on the matter of Bitcoin’s increasing popularity. According to a recent interview, Ingves stated Bitcoin’s rapidly growing popularity will clearly raise the stakes for regulatory agencies, central banks, and lawmakers all over the world. thus increasing the demand for regulations.
Ingves believed that digital assets are getting bigger, and attracting more consumers which will lead to money laundering schemes and fraud. The governor of Riksbank continued saying the chances of more regulations were quite high, and will likely happen in the near future.
It is not surprising that agencies have a hard time forming regulatory frameworks for digital assets since crypto-assets are designed to bypass the nature of traditional finance. Thus forming regulations for digital assets is incredibly tedious.
Federal Reserve Vice Chairman Randal Quarles in the USA, stated the ongoing regulatory provisions for cryptocurrency are inadequate, implying that the Federal Reserve is currently looking for the best way to tackle the situation. The Chairman’s remarked during a time when Bitcoin shredded $15,000 in one swoop.
The EU has pledged to place together a comprehensive framework to uptake crypto assets in the financial sector by 2024. Asa Lindhagen, the minister for financial markets in Sweden, has stated the government is currently attempting to strengthen the regulatory standards for digital assets. She also pointed out the need for international coordination between regulators around the world.
The Swedish central bank has developed a central bank cryptocurrency e-Krona, designed to use a distributed ledger technology from R3. It is said to be operational in 5 years.
