Many analysts have debated the impacts of regulations on the Blockchain space’s affairs as opinions continue to be divided. While many analysts have argued that proper regulations tailored towards the affairs of the cryptocurrency space will foster the space’s adoption, many others believe that regulations over the Blockchain space will give government and their financial regulators too much power over a decentralized terrain. However, British Finance Minister- John Glen has other thoughts. The finance expatriate believes that, while it is crucial to regulate the entire space, Stabklecoins should be the top priority of the government and regulatory bodies.
Glen believes Stablecoin projects will enjoy unrivaled autonomy
The Finance Minister, who was one of the speakers at a financial summit earlier today, believes that it will be easier for top dogs to dominate the Stablecoin space, hence, why there is a need for proper regulation concerning the U.S dollar-backed tokens. Glen believes that it is essential to regulate the entire Blockchain space but believes that Stablecoins should be getting most of the attention right now.
He believes that the nature of the U.S. dollar-backed tokens, which had seen them become one of the most traded digital assets by volume, is a reason why the top financial players could exploit the space. Glen’s words have come when many analysts have called for the regulation of the Stablecoin market, as the general belief is that if a top player is allowed to dominate the space, the level of autonomy such player will get will be unrivaled.
However, if granted a license, the Facebook-themed Diem project will be one of the first stablecoin projects. However, according to Glen’s words, he believes should such projects ever launch without regulations in place, it will birth more of the same nature projects.
Glen is correct, but more regulations have to come into place
While Glen’s words have come when there have been different opinions concerning crypto regulations, the British finance minister’s concerns are valid. However, the U.K. financial policymakers- Financial Conduct Authority (FCA), at one point have rejected regulating stablecoins. The FCA believes that despite the cryptocurrency being backed by fiat currency, it does not have the valuable feature of an FCA-regulated asset, and support cannot be provided for the cryptocurrency.
However, in the bigger picture, the broader Blockchain market needs to be regulated, as many analysts have suggested in the past. Many analysts believe that if the cryptocurrency market is regulated, it will aid in adopting the digital assets trading in the market. These analysts believe that if the government backs the market with proper regulations, many traditional investors will reconsider their stance with cryptocurrency assets.
However, while many nations have back the cryptocurrency market in their country with proper regulations to aid trading, a few nations like Nigeria have seemed to halt cryptocurrency trading affairs in the country, with the imposition of laws that hamper crypto trading in the nation.