IMF: Crypto Assets Become More Mainstream as Hedges Against Weak Currencies, ...
The International Monetary Fund (IMF) published a report stating that crypto assets have gained a “more mainstream presence as speculative investments, hedges against weak currencies, and potential payment instruments.” The IMF has called for a global response to crypto regulation that is coordinated, consistent, and comprehensive. IMF Officials on Crypto Regulation, Mainstream Adoption The International Monetary Fund (IMF) published a report titled “Regulating Crypto: The right rules could provide a safe space for innovation” in the September edition....
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Recent failures of crypto issuers, exchanges, and hedge funds are major motivators behind better crypto regulation. The past few years have seen crypto assets moved from being “niche products” to having more of a mainstream presence, prompting the need for more comprehensive regulation of the space, according to the International Monetary Fund (IMF).In a new report authored by IMF capital markets director Aditya Narain and assistant director Marina Moretti, officials noted that crypto assets have firmly shifted away from being “niche products” to ones used for speculative investments,....
Jeff Currie, the global head of commodities research at Goldman Sachs, described Bitcoin as a “risk-on” asset that is similar to copper as a hedge against inflation. Jeff Currie, the global head of commodities research at Goldman Sachs, has dismissed comparisons between Bitcoin and gold as an inflation hedge, and described BTC as more akin to a “risk-on” asset like copper. Speaking on CNBC’s Squawk Box Europe on June 1, Currie noted that copper and Bitcoin both work as “risk-on assets” for hedging due to their volatility while describing gold as a more stable “risk-off” hedge”: "Digital....
Tyler Cowen, an economist and professor at George Mason University, has suggested that the key use cases of cryptocurrencies are mutually exclusive. He argues that cryptos can either be important inflation hedging tools or useful forms of payment but not both. The Regulation Threat The professor adds that despite the popular assertions by some that bitcoin will replace the U.S. dollar as the world’s reserve currency, the digital asset remains too volatile to serve this purpose. Writing in an opinion piece, the economist concedes that “there is a demand for a non-intermediated,....
Last week's rout in bitcoin market looks like "weak hands" selling out because bidders appeared to materialize whenever prices fell to $30K.
Fan Yifei, vice-governor of the People’s Bank of China believes the best way to make the most of digital currencies is to supervise them and to create their own digital currency. Writing in the Bloomberg View column, Fan states that in order for the PBOC to tackle the challenge of supervising digital currencies it needs to think about how it can maintain financial stability, innovation and proper supervision regarding the issuance and circulation of the new digital currencies. Fan said: With internet access increasing and encryption technology improving, the conditions are ripe for digital....