Fmr says that blockchain technology has a lot of potential. Sheila Bair, chair of the FDIC.
However, she argued that much of the promise of the blockchain industry is speculative.
Cryptocurrencies with value will operate in a clear regulatory environment.
Blockchain technology holds a lot of promise
Sheila Bair, former chair of the Federal Deposit Insurance Corporation (FDIC), told cnbc In a recent interview, he believes that there is a lot of hope in blockchain technology.
Barr, who is also the executive director of Paxos, a blockchain technology company, said;
“I have always separated assets from technology. I think the technology holds a lot of promise for socially beneficial uses such as payment systems and tracking supply chains. There are a lot of interesting use cases that can be developed is and must be developed. The problem is that much of this industry has gone into speculative assets, and it works until it doesn’t.
He added that cryptocurrency projects that do not have value are being punished by the market, while those that do have value will help nurture the technology in a clear regulatory environment where it socially benefits society. And regulation shuts it down where it doesn’t belong.
crypto space news clear regulation
His comments come barely two weeks after Binance CEO Changpeng Zhao said the crypto sector was hard Clear and stable rules are needed,
When asked about the slow regulatory approach towards the cryptocurrency market, Baer said;
“There is a frustrating lack of agility in our regulatory system. We saw that during the great financial crisis when regulators were slow to respond. Part of this has to do with our vulcanized regulatory structure, which includes the SEC, CFTC, FDIC and many other regulatory agencies. _(v_( you) you’re there, who are tasked with handling different jobs. So when it comes to regulating the market, there is a war between regulatory agencies as to where the focus should be on regulation.”
The former FDIC boss urged Congress to allow regulatory agencies to regulate the market and become less intrusive in matters.
This Latest Cryptocurrency News The broader crypto market is slowly recovering from yesterday’s slump. The total crypto market cap is inching towards the $850 billion mark after adding over 2% to today’s value.