Could Crypto eat the Regulators as well as TradFi?
Here is our pick of the 3 most important Stablecoin news stories during the week.
This story from Wolfgang Münchau got us thinking this week. Wolfgang is worth a follow if you are interested in a different take on Politics in Europe. Crypto is based on open source code and transaction processing that anyone with a moderate level of technical knowledge can verify for themselves. Regulators have been put in place in the TradFi space to verify things we can’t for ourselves. So going forward into this new Digital Age will we be able to do away with regulators?
In the meantime, Central Bankers are trying to figure out if they can get into the Finance game directly themselves.
“Recognizing the potential benefits of innovation in digital money and payments, finance officials from the Group of Seven (G7) major economies addressed relevant public policy and regulatory issues at their latest meeting which also produced over a dozen guidelines for central bank digital currencies (CBDCs).”
Whilst in TradFi at least one player has twigged that they are so far behind and carry such a large cost base that they are going to need some help from the regulators to compete in this new playing field.
“Beth Hammack, a member of the Goldman Sachs Management Committee, raised the issue of different rules being applied to incumbent banks versus startups in the digital currency sector and multiple times called for a level playing field for banks.”
So in summary, Central Bankers (who are part of the Regulatory framework) are trying to figure out if the can get in, TradFi players want some help from those same Regulators to catch up and we have this tantalizing vision that we may not need either of them.
Seriously, Goldman Sachs you can cry me a river!
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Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years.
We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information.
For context on stablecoins please read this introductory interview with Alan “How stablecoins will change our world” and read articles tagged stablecoin in our archives.
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