The biggest risk for retail investors is the lack of regulation in cryptocurrencies. The future of digital assets depends on the US stance.
This year OCC has issued licenses to three digital banks.
Cryptocurrency The interest of investors is increasing continuously. After the order of the Supreme Court, the ban has been lifted from its trading, but the Reserve Bank has not yet given it legal recognition. According to a report, investment in crypto has increased from $ 200 million to $ 40 billion in the last one year.
In a report published in Bloomberg, Marshall Wace Asia Ltd CEO Amit Rajpal said in his interview that the biggest risk for retail investors is the lack of regulation in cryptocurrencies. There have been many such cases in which investors’ money has been sunk because their accounts have been hacked and emptied. The biggest drawback of its asset is its price volatility. However, the good thing is that its acceptance is gradually increasing and due to this the regulation architecture is improving. There has been a lot of improvement in trading exchange and regulation as compared to last 3-5 years.
Cryptocurrencies are no longer a threat to the financial system
Do cryptocurrencies pose any threat to the current financial system? Regarding this, he says that right now it is a very small market. The cryptocurrency market has recently crossed the $1 trillion mark. If you look, there are many such companies in the world whose market cap is more than 1 trillion dollars. In terms of value, it is not even half a percent of the global financial system, but the reason for its discussion and attraction is the volatility in the price.
US attitude will decide digital currency future
Regarding its future, he says that the attitude of America towards cryptocurrencies and digital assets will determine its future. Currently 6 regulators are working to make cryptocurrencies and blockchain technology a part of the financial system. This includes the Office of the Comptroller of the Currency (OCC), the Federal Reserve, the New York Department of Financial Services, the SEC (The US Securities and Exchange Commission) and the Financial Crimes Enforcement Network (FinCEN).
Many countries have moved towards adopting it.
This year OCC has issued licenses to three digital banks. These banks only transact in digital currency. Here the Reserve Bank is also working in the direction of government digital currency. The People’s Bank of China has even progressed to the pilot project. In such a situation, there is every possibility that digital currency will also get recognition. However, this journey is expected to be full of ups and downs.
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