Skip to main content

FED VICE PRESIDENT: CRYPTO ECOSYSTEM NEEDS TO BE REGULATED!



 Lael Brainard on cryptocurrencies

On Friday, July 8th, the Vice Chair of the US Federal Reserve spoke at a Bank of England conference on cryptocurrencies and decentralized finance. She emphasized some problems of the still young market environment. Because of the high volatility when considering the dollar exchange rate of a cryptocurrency, easy handling is not possible.


She sees great dangers in the areas of liquidity and leverage trading in particular. In fact, these are no different from the dangers inherent in traditional finance. In addition, she also emphasized the ability that cryptocurrencies and digital innovations can bring great efficiency to the market, thereby saving costs and time in large parts. In fact, she does not go into the actual innovation of the blockchain: decentralized account management without third parties.

In the current bear market, many projects go bankrupt. In the bull market, these were often inflated too much without actually thinking long-term. Terra (LUNA) and Celsius are probably among the biggest contenders on the list right now. The danger for private investors is very high with these projects, which is why regulation should take place according to Brainard. Because the small investors should be protected.


Regarding the crypto ecosystem, Lael Brainard explained :

Future financial resilience will be greatly enhanced if we ensure that the regulatory framework encompasses the crypto financial system and reflects the principle of “same risk, same disclosure, same regulatory outcome”. Especially with a CBDC this could be solved.

In Asia, CBDC has been the new standard for over a year - Europe wants to start with its CBDC in 2023. Many central banks around the world are currently racing to see how a CBDC could work in a meaningful way for the respective country or monetary system. The USA with the Fed also want to switch to a digital alternative in the long term. 


Because this alternative gives the central banks significantly more power and opportunities to control payment transactions and pursue a new monetary policy. As soon as this CBDC was introduced, the state could have significantly more influence on our lives than is otherwise only known from authoritarian systems. At the same time, the developments surrounding the CBDC seem to be causing more and more regulatory restrictions for cryptocurrencies as well.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

The 5 largest platforms for non-fungible token (NFT) collectibles

  Since the beginning of 2021, non-fungible tokens (NFT) have had no holding back and the sector is setting new records almost every day.  More and more artists, stars and brands are realizing the potential - NFT are well on their way to catapulting the crypto space into the mainstream.  But which collectibles are currently the most popular? What are NFT? NFT are unique tokens that cannot be exchanged one-for-one for an equivalent token.  Any asset that is tokenizable can be an NFT.  This includes, for example, (digital) works of art, trading cards, game items and crypto domains.  Theoretically, however, real estate or securities can also be mapped as NFT. NFTs can be used to transparently map ownership structures on a public blockchain.  This allows them to store value just like real objects, even if additional copies are easy to make.  For example, the original picture of the Mona Lisa is significantly more valuable than a photo, as everyone kno...
11 comments
Read more

CARDALONIA: THE CARDANO METAVERSE OPENS THE GATES!

  Have you ever been to Cardalonia? With these words, the Cardano Metaverse called Cardalonia starts the gates. In this 3D world, developers and users can interact with each other. First of all, users have to create an individual character with which they can move online. After that you can enter one of the worlds built by developers with this character. You can also purchase your own land in the Cardano Metaverse via the marketplaces in Cardalonia . This is secured by Cardano's blockchain technology and therefore offers a relatively secure transfer of ownership. Since these are only digital plots of land, it is not yet entirely clear when the plots of land are purchased whether they can also be sold again in the future. A possible profit cannot be estimated at the moment. In Cardalonia, the cryptocurrency Lonia is used. The maximum amount of tokens in circulation is 100,000,000. The team consists of Alice Sand (Co-Founder), Vasil Air (CTO) and Dustan Water (Fullstack Developer). T...
Post a Comment
Read more

Cardano: This is the vision that founder Charles Hoskinson has

  The Altcoin Cardano has tended to decline in recent weeks.  The Alonzo upgrade was supposed to bring improvements, but it soon turned out to be a disappointment.  Cardano founder Charles Hoskinson presented his vision for the cyber motto in a live Twitter video. • Cardano in the last few months under pressure • Charles Hoskinson explains his Cardano vision via Twitter • Security and privacy at the center The cryptocurrency  Cardano  has had a difficult few months.  While founder Charles Hoskinson's cyber motto has had a strong run in 2021, it has been steadily downhill in recent months.  Cardano is faced with some difficulties.  The so-called Alonzo upgrade went live in mid-September, for which crypto fans had high hopes, but which soon turned out to be a disappointment.  The upgrade should make it possible to use smart contracts on the cryptocurrency as well.  It soon turned out, however, that although these were entered into Cardano,...
Post a Comment
Read more