Cryptocurrency News

Riksbank says rising popularity of bitcoin will lead to more regulation

The steady growth and greater mainstream adoption of cryptocurrencies is keeping international monetary authorities on their toes.

in fresh notes This week, the governor of Sweden’s central bank, Riksbank, Stefan Ingves, said that the growing popularity of digital assets has raised the stakes for regulators, central bankers and lawmakers around the world:

“When something gets big enough, things like consumer interest and money laundering come into play. So there is good reason to believe that [regulation] What will happen.”

Creating a regulatory framework for an asset that was initially designed to circumvent the very architecture and rules of traditional finance is not an easy task. In the United States, the Federal Reserve’s vice president of oversight, Randall Quarles, raised his concerns that Current regulatory provisions for crypto are inadequate, indicating that the Fed is in the process of looking at the best way to tackle the issue. Quarles was commented with bitcoin amid a week of wild volatility in cryptocurrency markets (B T c) temporarily dropped the price by a whopping $15,000 in one stroke.

Meanwhile, the European Union has resolved to create “a comprehensive framework to enable the rise of distributed ledger technology (DLT) and Crypto-assets in the financial sector“By 2024 – one that, equally, will deal with the risks involved in mainstreaming these technologies.

In Sweden, Financial Markets Minister Osa Lindhagen has said that the government is already engaged in strengthening regulatory standards for cryptocurrency exchanges. Various crypto regulatory approaches remain, he said, “a work in progress internationally.”

Ingwes himself remarks that cryptocurrency rules “may come in different areas at different times.” Yet when it comes to the “very important issue” of money laundering, Lindhagen pointed to the need for cross-border coordination between regulators around the world.

As regulators how to approach the phenomenon of decentralized crypto assets, the Swedish central bank is meanwhile making progress with itself Development of a central bank digital currency, e-krona. its Uses proof-of-concept corda, a distributed ledger technology solution from R3. Inges had previously indicated that the currency could be operational within five years.