I cannot imagine that even a medium-sized economy will ever relinquish the economic and political power that accompanies the issuance of its own currency. Some small economies have abandoned their own fiat currencies and adopted the US dollar, and one of them – El Salvador – recently introduced Bitcoin as legal tender alongside the US dollar. Could such a country finally go all the way and completely abandon fiat in favor of a cryptocurrency? Increased regulation and arbitration. Binance`s recent announcement that it has received crypto asset licenses from Dubai and Bahrain, and its chief executives` statement that this is an “important step in our journey towards comprehensive licensing and regulation worldwide” is the clearest example of major market players seeing writing on the wall. Not so long ago, the SEC invited crypto companies to voluntarily enter the regulatory tent. Smart businesses will step in and help shape regulation. Staying outdoors is becoming less and less of an option. The choice will not be whether to regulate, but where to regulate. This has sparked a debate about whether national rules alone can ever address these risks posed by an asset class that is globally within its reach but does not exist anywhere, or whether international rules and even some sort of supranational body will be needed to regulate crypto-assets. These changes will not happen quickly, but they should already affect the prospects of all those working in this field. Decentralized finance (DeFi), one of the fastest growing ecosystems in the cryptocurrency market, has long been a dilemma for regulators given the decentralized nature of the space. Switching to DeFi, I suspect that most retail investors don`t because they`re looking for more privacy. They strive for better returns than they think they can get with other investments.
While some DeFi members believe in complete financial privacy, I expect projects solved for pseudonymity to be more likely to succeed, as investors can then be sure that asset prices reflect the real interest of real investors and not prices pumped by hidden manipulators. Projects that address this issue are also more likely to comply with SEC regulations and other legal obligations, including anti-money laundering and anti-terrorist financing requirements imposed by the Bank Secrecy Act. Continued adoption of cryptocurrencies and digital assets more broadly. Whether viewed from the perspective of financial markets in major economies (for example, a 2021 survey of 100 hedge funds found that executives expect to hold an average of 7.2% of their wealth in cryptocurrencies by 2026) or developing countries whose citizens have not been as well served by the existing global financial system as more advanced economies and appear from certain parameters ( for example, the volume of P2P transactions and the number of cryptocurrency users). The market is much more open to cryptocurrency adoption and is expected to continue to grow. The total locked value (TVL) is the sum of all cryptocurrencies used, loaned, pooled or used for other financial actions in DeFi. It can also represent the sum of certain cryptocurrencies used for financial activities such as Ether or Bitcoin. Secondly, transparency has its limits. It`s all well and good that fully decentralized, on-chain systems are readable by end users.
This does not mean that end users can understand what they are buying or how to assess risks. Only a tiny fraction of crypto buyers have the technical knowledge (let alone time) to fully understand the most complex DeFi protocols. In short, as in the traditional banking sector, end-users or depositors are dispersed and lack the supervisory expertise to sufficiently discipline these institutions. The #FBI warns that cybercriminals are increasingly exploiting vulnerabilities in decentralized financial platforms (DeFi) to steal cryptocurrency from investors. If you think you may be a victim, contact your local FBI or IC3 office. Read more: t.co/fboL1N17JN pic.twitter.com/VKdbpbmEU1 cryptocurrencies and decentralized finance continue to be scrutinized by federal agencies and commissions.