Cryptocurrency Is Getting Global Support
The organization will be made up of central bankers, entrepreneurs, blockchain analysts and others who will seek to utilize their knowledge of cryptocurrency trading to establish lasting legislation.
Interestingly, reactions to the news have been divided, with some claiming that the move is a powerful first step towards bringing crypto closer to mainstream territory. Others say it’s likely to present even more problems down the line.
One fan of the initiative is Mark Williams, a professor who teaches fintech at Boston University. He explained:
This announcement is a further indication that the economic elites are no longer ignoring the innovation behind cryptocurrencies and blockchain technology.
However, some have stated that the firm could potentially bring even more confusion to the already convoluted world of crypto regulation. Digital currencies are regulated differently depending on where they are used. Each country has its own rules, and it’s up to the trader to understand those rules and how they apply before they engage with any crypto trading platform.
The firm, however, claims it’s looking to ease up this confusion and potentially put an end to the labyrinth that is the world of crypto legislation.
Klaus Schwab – founder and executive chairman of the World Economic Forum – states:
Digital currency, a cross-cutting topic that requires input across sectors, functions and geographies, is a key area of interest for the Forum. Building on our long history of public-private cooperation, we hope that hosting this consortium will [work towards] conversations necessary to inform a robust framework of governance for global digital currencies.
Lesetja Kganyago, governor of the South African Reserve Bank, echoed this sentiment, explaining:
Any evaluation of digital currencies should consider both policy and business objectives, as well as the unique circumstances that face different economies around the world in order to fully evaluate their risks and benefits. Bringing together diverse perspectives through this consortium will allow for this holistic review. In order to achieve this, we need the public and private sector to collaborate.
The news of the Forum resulted in a small bitcoin bounce. Prior, the asset was trading for as low as $8,200 though it later spiked by $200 and rose to $8,400. The currency has not jumped back up to where it was earlier this week ($8,600), but it’s a start in regaining its previous bullish momentum.
A Few More Words of Wisdom
Patrick Ngugi Njoroge, governor of the Central Bank of Kenya, stated:
While digital currencies offer wide possibilities, these have to be asserted against the fundamental objectives of economic advancement and shared prosperity. Global governance of the diverse initiatives provides greater assurance of this outcome.