Global competition for the next wave of financial innovation is heating up.
Consumers see financial innovation as a means to break down legacy inefficiencies, increase access and lower the cost of financial services.
While cryptocurrencies have mainly been vehicles for financial speculation because of their significant volatility, new stablecoins move closer to meeting consumer demands for more secure and faster transaction options.
The value to underserved populations is evident from the potential utility and ease of use that specialized financial services products built off innovations such as stablecoins could offer.
The G7 working group report on stablecoins published last week makes clear that consumer participation in financial services is rapidly changing and that innovation will continue to expand.
The report shows that financial overseers understand the need for a viable framework for these new, ambitious projects that seek to transform digitally native interactions with money and value.
The fear is that stablecoin systems - while decentralized by design and transparently governed by a collection of companies and non-profits, and that abide by the rules and regulations set forth by the U.S. Congress and the international community - could undermine the banking system, embolden money launderers, or cause cracks in the global monetary system.
Just as changing consumer habits across the technology and financial services landscape have pushed companies to reimagine how the global economy buys and sells goods and services, the intense public scrutiny of stablecoins is now pushing organizations developing these systems to ensure appropriate regulation.
They will need to collaborate with government bodies to ensure any new system is safe, secure, and complementary to the existing financial system.
Regulators should offer a path for stablecoins to exist alongside current financial systems and under regulatory environments.
Don't Squash Them
pubblicato su Oct 23, 2019
by Coindesk | pubblicato su Coinage
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