BitOoda Global & Regulatory Analysis, 10/21/2019: Global Focus on Stablecoins & CBDCs
Back in July, we analyzed the question: “Will the fight over Libra engage global monetary authorities in a way that compels them to decide how they will fit digital assets into their economic structures?” Our assessment that Libra could be the factor that spurs real engagement by national governments and global regulators on virtual currencies is becoming more accurate by the day. In the past month, the following alphabet soup of regulatory bodies has jumped into the fray on stablecoins and central bank digital currencies (CBDCs): the G7 and G20, the Bank of International Settlements (BIS), the International Monetary Fund (IMF), the Financial Stability Board (FSB), the Financial Action Task Force (FATF), the European Central Bank (ECB), and the European Commission. Country-level authorities including the U.S. Federal Reserve and former CFTC Chair Giancarlo also jumped in on the CBDC debate with statements on digitizing the USD. These initial reports led to an agreement by the G20 to develop global standards for stablecoins; that action plan will start in April 2020 when the G20 receives recommendations from the FSB, FATF, and IMF.
We invite you to follow the links above for more details on these various reports and statements, but let us save you some time and summarize the overall sentiment from these global bodies: stablecoins have the potential to improve the international monetary system (such as payments and access to banking), but governments first need address the risks (such as money laundering, market integrity, and data privacy) and assess the implications for monetary policy and financial stability. Given the accelerating momentum behind both national and multinational policy debates over CBDCs and global stablecoins, we think it is only a matter of time before the international monetary system begins to fundamentally change with the integration of digital assets.
This is why we at BitOoda have focused on a strategic business model that cuts across the various verticals within the digital asset ecosystem. The comprehensive nature of the evolving changes to the nature of money means that every aspect of financial activity will need to involve the digital economy, which is why we have developed an unmatched ability to structure bespoke products using our comprehensive regulatory stack to cut across asset classes, leverage our industry-wide network to provide advisory services tapping into any sector of the digital economy, and apply our expertise on everything from derivatives to mining to infrastructure and more. We welcome the growing momentum behind the integration of digital assets into the mainstream economy, even if global regulators take time to work through the more complex and challenging elements of the digital asset ecosystem…and of course the political shenanigans that come with any significant change.