Crypto Checkup: Insights from the CEO of BTC Markets
The economic fallout from COVID-19 continues to prompt a historic level of dislocation across all asset classes. Stocks are on track for record declines, currencies are whipsawing and even bond markets have seen a surge in volatility.
Cryptocurrency hasn’t been immune to the selloff, but the asset class continues to warrant plenty of discussion among analysts and commentators.
For example, whether Bitcoin will function as a store of value — the digital currency equivalent of gold — in an environment where major governments are announcing plans for unprecedented spending measures to keep their economies afloat.
For an update on the sector, Stockhead recently caught up with Caroline Bowler, the new CEO of Melbourne-based cryptocurrency exchange BTC Markets.
As the market continues to develop, Bowler said one of her primary focus areas is on the broader regulatory backdrop, which will govern how digital assets continue to integrate with traditional financial markets.
And she pointed to a number of recent examples which show evidence of continued activity in the space:
– A January report from the European Securities and Markets Authority (ESMA), where it highlighted plans to establish clearer regulatory parameters around digital assets;
– The tabling this month of the “Crypto-Currency Act of 2020” to US Congress which attributes regulatory oversight for different aspects of the crypto market to various federal agencies; and
– Continued efforts to integrate crypto payments, such as US crypto-custody platform Bakkt setting up direct payment integration with the Starbucks coffee chain.
“I think it’s important to build out the legal platform for cryptocurrency because one you establish regulation, that gives people a framework to start shaping their business models,” Bowler said.
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