CEO of leading the United States derivative market CME Group, Terry Duffy told Business Insider on Monday, March 25, that Bitcoin’s limited amount is a challenge for regulators.
The inability to run Bitcoin on a deficit is challenging for regulation, as per Duffy. He further explained that the governments can’t run unless they can run on a deficit. As per him, he is trying to figure out why they would say, ‘Sounds good to me, because I want to be responsible and run everything on the even-for-even basis. I can’t borrow against anything.’
For that reason, one of the most important selling points of most cryptocurrencies, a limited supply, is an impediment to their additional adoption by state entities, as per Duffy. Furthermore, he added that regulators are still wary about digital assets and cryptocurrencies, as they are still a relatively new financial instrument. Duffy mentioned that he does believe that the regulators right now are a little careful about just rubber stamping anything as it relates to crypto. As per him, one is going to have to have an offering that the regulators are going to have to get comfortable. Moreover, he thinks that it is hard to get comfortable with something that is so new like this.
Furthermore, he thinks that stablecoins pegged to the U.S. dollar or euro will gain more traction. The primary reason behind this is that they have some of the characteristics of traditional money.
He thus recapitulated his standpoint from a February interview with Bloomberg. At that time, he said that major commercial banks are not expected to get involved in the market unless the governments globally begin accepting digital assets and cryptocurrencies.
It is to be noted that numerous financial experts and cryptocurrency entrepreneurs opt for stablecoins as the best use case of cryptocurrencies. For illustration, the Winklevoss twins believe that stablecoins and tokenized securities are the future of cryptocurrency innovation. Interestingly, Winklevoss twins earlier launched their own dollar-backed stablecoin, the Gemini dollar.