“India will fight against the use of crypto-currencies “, China will harden measures against crypto-currencies “, ” South Korea will ban the trading of crypto-currencies “… in recent weeks, the headlines to believe that the future of the complex crypto-currency is threatened multiply in the media.
By scratching beneath the surface, one realizes yet that this is either the extension of measures already in place (China), a willingness to put the order on a marketplace, somewhat anarchic, which can only be positive for its long-term sustainability. But the media is constantly publishing articles alarmist, which magnifies the movements of prices, to a certain extent foreseeable, incurred by this uncertainty.
Next to these alerts that are the buzz, but there is a good news, on which the press insists less (this is less seller). In addition to the futures contracts on the Bitcoin, which began trading on the CME, the authorities its slowly in the process of adouber the crypto-currencies after the be tolerated.
The United States, a guarantee for the future of crypto-currencies
If some countries such as China, have chosen to ban purely and simply the crypto-currencies, all the nations of the world do not have the same look on the ecosystem. In the United States, the authorities and the regulators are working now on the establishment of a legal framework for crypto-currencies.
In this respect, the chairman of the CFTC, and J. Christopher Giancarlo today, must pass in front of the banking committee of the u.s. Senate to provide testimony on the role of regulators in this market, and by the opportunity to give its opinion on the complex.
We already have his testimony in writing, published on the official website of the Senate banking committee. I translate here some of the passages, extremely interesting :
“To begin, I would like to point out that the timing of this hearing particularly timely. In general, the technologies financial emerging are in the process of opening a new chapter of economic history. They directly impact the trading, markets and the whole financial world, with huge consequences for capital formation and the transfer of risk. These technologies include artificial intelligence, machine learning, algorithmic trading, data analysis, intelligent contracts that autovalorisent and calculate payments in real-time technology and registries distributed, which in the end could undermine the traditional structures of the markets. They transform the world around us, so this is not a surprise if these technologies have an impact on the capital markets and derivatives americans. “(page 1)
“Opinions abound regarding crypto-currencies, […] some are excited, others talk of bubbles. […]
It is important to put things in perspective. On 5 February in the morning, the market value of Bitcoin was $ 130 billion on the basis of a Bitcoin to a 7 700 $. This market value is lower than that of a large corporation such as Mcdonald’s (around 130 billion). The total market value of the complex was $ 365 billion. Seen that the virtual currency like Bitcoin is sometimes compared to an asset such as gold as an investment vehicle, it is important to know that the total value of the gold in circulation is 8 trillion dollars according to the World Gold Council. […] Clearly, the level of media attention focused on the virtual currency, is much higher than their weight on the global economy. “(…) (page 2)
Capitol – source Pixabay
“The CFTC believes that a response regulator responsible for the virtual currency must start with the education of consumers. Beyond the assumptions, crazy, out of the headlines and hyperboles shocking about them, a greater understanding and clarity is needed. “
“While the records distributed promise huge benefits for companies and associations, they are also likely to help the financial market regulators in their mission of surveillance of healthy markets and risk control. There would have been a big difference if, just before the crisis of 2008, regulators had real-time access to the accounts of major Wall Street banks instead of having to assemble the complex pieces of a puzzle to re-create portfolios of trading individual. […] (page 12)
“Two decades ago, when the Internet was entering a phase of growth and rapid expansion, the republican congress and the Clinton administration established a series of fundamental principles. The evolution of the Internet should not be […] hampered by laws or regulators. […]
This simple approach has allowed the Internet to lead to profound changes of the human society. […] “Not to hinder” was undoubtedly the correct approach to be adopted for the development of the Internet. Similarly, I think it is the right approach to the technology of records distributed.
The virtual currency, however, must be monitored more carefully in key areas, especially due to the fact that small investors are attracted by this market. “
And finally, finally, the conclusion of J. Christopher Giancarlo :
“The global financial markets are entering a new digital era. As we have seen with the development of the Internet, it is impossible to fit this genie in its lamp. The virtual currency, introduce a new paradigm in terms of payments, financial processes, and of the way in which the economic activity takes place. Ignore these developments will drive no, it not a question more a response manager. The evolution of these assets, their volatility, as well as the interest of young people for this requires a serious review.
With the right balance of intelligent policies, oversight, and innovation of the private sector, these new technologies will allow u.s. markets to evolve to be more responsible, generate growth and increase prosperity. This hearing is an important element in the search for this balance. “
Bitcoin can dive up to 5 000 or 2 000 $, nothing will change. All technologies derived from the invention of Bitcoin has undoubtedly the power to trigger a revolution similar to that of the Internet in the 90’s. The chairman of the CFTC, himself goes in this direction, by developing similar arguments to those I advanced in the article ” Why governments need the crypto-currencies “. This is not a guarantee in terms of the valuation of crypto-currencies in the short or medium term. However, to think that crypto-currencies will die with the explosion of the bubble is according to me either ignorance or a total lack of understanding of what is being played. If the united states enact legislation supportive of the other big nations will follow. This is great news.
Source : Site of the banking committee of the Senate US