Hong Kong Monetary Authority’s (HKMA) CEO Eddie Yue recently said that cryptocurrencies are likely to play a central role in the financial systems in the future, despite the recent problems in the sector.
Yue spoke during the G20 meetings on July 17 and said that he didn’t think crypto and DeFi would disappear, even after the LUNA incident. Yue acknowledged that they might be restricted, but he still praised the technology’s benefits. He said:
“The technology and the bushiness innovation behind these developments are likely to be important for our future financial system,”
Yue stated that successful crypto protocols can be modified to fit the current financial market. He also stressed that a comprehensive regulation is necessary to ensure the implementation’s healthy growth.
Bitcoin should be part of any portfolio
Blackrock’s former executive Edward Dowd, unaware of Yue’s comments, also recently said Bitcoin would become a part of everyone’s portfolio.
Dowd also said that the bear markets are not the end to crypto. He did however, say that Bitcoin is different than other cryptocurrencies and will likely surpass gold in the future.
“Bitcoin is here to stay. It is going to be a part of everyone’s portfolio. You can exchange bitcoin digitally at least, while gold is much more difficult to sell. I’m not against gold, and having some gold is not a bad idea,”
He compared Bitcoin’s rise to prominence to Amazon’s in the early days. Dowd predicts that 90% of cryptocurrency will go under, much like the 90% of internet companies in the early years. Bitcoin is the 10% remaining in those early years that became Amazon.
Yue, Dowd and U.S. speak the same language. Senators Kristen Gillibrand, Kristen Lummis, and Cynthia Lummis agree. A draft bill was presented by the two senators to incorporate cryptocurrencies into our financial system. The bill appoints CFTC (Commodity Futures Trading Commission) as crypto market regulator. It aims to fully integrate crypto into the U.S. financial systems.
Another government office that is in agreement with the rest of the group is the Bank of England. The Bank of England (BoE) has spoken fondly about the crypto sector for many years, while being cautious about the volatility. Recently, BoE’s Deputy Governor for Financial Stability Jon Cunliffe also likened the crypto sector to the early days of the internet. He said he was confident in crypto’s future and promoted its incorporation into the financial system. Cunliffe however, was also a proponent of a regulatory framework.