BIS Innovation Hub Says Global Crypto Regulatory Framework in 2022

BIS Innovation Hub Says Global Crypto Regulatory Framework in 2022

Benoit Coeure, the head of the BIS Innovation Hub, has stated that a worldwide legal framework for cryptocurrencies will be introduced by 2022.

Looking at how quickly crypto is entering the mainstream, Coeure believes it is the right time for thorough regulation. The former member of the European Central Bank’s executive board is quite concerned about the decentralized finance sector’s (DeFi) expansion, which poses a danger to conventional finance (TradFi) and hence can create systemic risks.

According to a famous French economist, various jurisdictions may be on the verge of developing fragmented methods to crypto regulation that will be wasteful on a worldwide basis. He does believe, however, that there is still time to avoid regulatory scenarios and establish a worldwide framework designed to keep new asset classes in mind. Sovereign nations’ ultimate judgments will be a compromise between sovereign strategic interests on the one hand and concerns towards the financial system’s proper functioning.

Consumer Protection

Consumer protection, according to Coeure, needs to be a key concern for politicians. To reduce the dangers associated with the unstable asset class, he has advocated prohibiting pension fund users from holding cryptocurrencies.

Coeure concluded in March that Bitcoin was a failing currency because of its volatility while also voicing concerns about major internet corporations’ Cryptocurrency aspirations.

He claims that digital currencies from the central bank would operate in the form of “the glue” for the whole financial system in his most recent interview. It’s not so much about the CBDC acting as the sovereign option towards the private money as it is about CBDC serving as the system’s glue.

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Jennifer Schreiber is certified Crypto Analyzer. She has completed her graduation from Cazenovia College. She works as an analyzer for our team and makes the latest bitcoin news related to the bitcoin price , fluctuations in prices and to be updated socially. you can contact her at : <a href="mailto:don@bitcoinprice.fun">don@bitcoinprice.fun</a>

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