CME Group CEO: The Biggest Obstacle for Crypto is Regulators
The chairman and CEO of CME Group, Terry Duffy, has specified that monetary regulators will be unlikely to provide a nod to crypto and are far more likely to authorize digital currencies backed by existing fiat currencies. Terry Duffy likewise stated that cryptocurrencies such as Bitcoin will require such a regulatory green light for the market surrounding digital assets to progress.
The executive from the Chicago Mercantile Exchange Group believes that such regulatory approval is hard to think of coming for cryptocurrencies like Bitcoin since they would not allow governments to run deficits. Duffy also believes that too much of the story surrounding the current crypto space is driven by speculation on price instead of adoption and genuine usage cases.
Bitcoin Type Cryptocurrencies Not Attractive to Lawmakers
Despite the Chicago Mercantile Exchange Group offering one of the most prominent crypto trading products presently available in the form of its Bitcoin futures contracts, its CEO and chairman is not so optimistic about the future of Bitcoin and other non-fiat-backed digital currencies. Terry Duffy offered his impressions and outlook for the space in an interview with Business Insider earlier this month at FIA’s International Futures Industry Conference, held in Florida.
Nevertheless, Duffy is more positive about fiat-backed digital assets, such as that being introduced by JP Morgan and the so-called “stable-coin” projects being provided by an ever-increasing number of interests. Such digitized variations of existing currencies, according to Duffy, will allow users to profit utilizing crypto with none of the expected drawbacks.
“How do we figure out how to get the cryptos in there, but just have them backed up by fiat, and let that work as it is.”
Duffy also stated that he felt that too much of the crypto-space’s emphasis was on the price of a given cryptocurrency and that perhaps a more meaningful conversation to have would be about actual uses:
“Once you get the use of it, the price will take care of itself… But the argument has gone only to the price of say bitcoin or any other cryptocurrency. No one is talking about, ‘How do I use this asset?’”
Duffy went on to comment that the most significant barrier to crypto at present was regulators and the thing putting regulators off Bitcoin and other cryptocurrencies was their finite total products:
“The governments can’t run unless they can run on a deficit. I am trying to figure out why they would say, ‘Sounds good to me, because I want to be responsible and run everything on even-for-even basis. I can’t borrow against anything.’”
Finally, the CME Group CEO specified that the only way for such non-government assets to ultimately get approval is if they do not make regulators unpleasant in any way. This is why fiat-backed-digital assets are more likely, in his viewpoint, to be successful where Bitcoin and other decentralized cryptos will stop working:
“You are going to have to have an offering that the regulators are going to have to get comfortable. And I think it is hard to get comfortable with something that is so new like this.”
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