07.24.2019

QUICK TAKE: US Lawmakers Know Crypto Is the Future

07.24.2019

So, what does the future hold for crypto? And will the U.S. get behind the nascent currencies?

Nigel Green, deVere Group

According to Nigel Green, Chief Executive Officer of the deVere Group, the recent Congressional hearing surrounding Facebook and its stablecoin Libra are a de facto admission by U.S. lawmakers that cryptocurrencies are the future.

And while there is still day-to-day volatility in crypto, the ongoing U.S. governmental hearings and fascinations regarding crypto and stablecoin underscores that digital currencies are now mainstream, he added.

“The high-profile scrutiny of this new cryptocurrency must be championed as cryptocurrencies are already part of the global financial system,” Green began. ““They are here to stay. And their influence is set to grow exponentially.  As such, they should face the same scrutiny and meet the same standards and requirements as the rest of the financial system.”

The deVere exec added that governmental or financial regulation is necessary within the sector, as it will provide further protection for the growing number of people using cryptocurrencies, the less likely it will be that criminals will use these digital payment methods, the less potential risk there will be for the disruption of global financial stability, and the more potential opportunities there will be for higher economic growth and activity in those countries which introduce it.

“This (acceptance of crypto and stable) is a step in the right direction for establishing a robust global regulatory framework for the wider crypto market,” Green said. ”Whatever you think about Facebook’s Libra (or others) as an individual cryptocurrency, these top-level U.S. governmental hearings underscore again that, as a concept, digital, global, borderless currencies are now a part of mainstream finance, and increasingly so. “This all adds to greater awareness and acknowledgement of digital currencies that will further boost mass adoption and push up prices across the sector.”

So, what’s next?

Green said that following President Trump’s recent Bitcoin comments, he agreed with the Tweeter-in-Chief that Facebook’s new Libra project should be scrutinized.

“But whatever happens with the social media giant’s crypto project, it is clear from the top-level hearings that the U.S. government now understands that, whether they like it or not, people and institutions across the world are increasingly using a combination of sovereign and non-sovereign digital currencies,” Green finished.

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