Too harsh cryptocurrency regulations would kill businesses, said economist Phillipp Sandner. He believes that regulators and governments should prioritize free trade to allow companies to develop new applications.
Economist Phillipp Sandner and global risk expert Dante Disparte are two professionals immersed in the cryptocurrency ecosystem. They recently spoke about the adoption of stablecoins and the digital euro worldwide.
The analysts explained that regulations on cryptocurrencies should only focus on consumer protection from a neutral point of view. They believe that this would help fuel the growth of the industry of crypto assets. These would include stablecoins and CBDCs like the digital euro, the values of which would remain volatile relative to fiat currencies.
In addition to being an economist, Phillipp Sandner is an expert in teaching blockchain technology. For his part, Dante Disparte is the director of global policy and strategy for the technology company Circle.
Sandner and Disparte think adopting crytocurrencies could boost money transfers between Europe and Latin America. In that sense, MasterCard recently said that a global regulation could promote the growth of that sector. That company and several financial institutions and payment platforms have considered incorporating Bitcoin and other crypto assets.
When writing this article, Bitcoin is trading at around USD 48,559 and has accumulated a 3.6% in the last 24 hours. Its daily trading volume is above USD 30.9 billion, and its market capitalization is about USD 917.8 billion, according to CoinGecko.
The Free Trade in Cryptocurrencies Contributes to the Growth of That Sector
The two experts explained that regulations on cryptocurrencies do not help if they impede the growth of that industry. They stressed that neither regulators nor governments should limit technological innovation such as crypto assets. On the contrary, they believe that those entities should prioritize free trade so that companies can continue to develop new applications.
Phillipp Sandner stated that a too harsh regulatory regime would kill the entrepreneurial spirit around crypto assets. Dante Disparte agreed with Sandner that the balance should allow encouraging responsible innovation. That would contribute to adopting cryptocurrencies within a political framework that promotes them.
Sandner pointed out that companies rather than the State emit 95% of the money in circulation that generates value. For example, he said that all technological innovations tend to develop in the private sector within free trade agreements. Furthermore, he stated that this expanded the role of the US dollar around the world.
The economist also mentioned the SWIFT code to recall that a global decision allowed issuing international bank transfers under a single system. He believes that it is also possible to promote that with stablecoins and the digital euro if there are no limitations on their operation.
Sandner and Disparte said that they expect more adoption of stablecoins in the first quarter of next year. They predicted that 2022 would be the year that blockchain, the technology enabling cryptocurrencies, could change the world.
The growing relevance of cryptocurrencies in the economy is increasingly evident, which governments and regulators do not overlook. For that reason, some authorities try to control and prohibit their adoption and use, with which Sandner and Disparte disagree.
By Alexander Salazar
