There was a time when the whole world was against the idea of decentralization; they didn’t want to do anything with it. But now everyone is back on the crypto train, and global regulators are torn between either accepting it and delegating it as the future of modern finance or ridiculing it. The main thing is that the idea of decentralization is now talked about freely and has gone mainstream. The Bank of England now wants to develop a firm legal framework around cryptocurrencies and how these will be working with their fiat counterparts. John Culliferthe, the deputy governor for the bank, has sincerely discouraged the use of cryptocurrencies within the UK financial system.
He says that these are still treated as something that is a threat to modern finance, whereas it is not; the usage of cryptocurrency remains as an activity that is frowned upon still. This is not a positive attitude for the digital assets in the UK; although their use has increased, their reputation has not changed at all. John stressed the fact that the UK needs to completely change its perspective on the use and overall being of these cryptocurrencies; these are not a threat but an important transitional change that is significant for modern finance.
Bank of England Strongly Backs Regulation of the Crypto Market
The bank used to fear in the old days about the effect of cryptocurrencies over the morale of the institutional investors and traders towards other assets such as gold, stocks, and whatnot and the payment processors being in a spill of crypto, thus blurring their understanding of the good old ways. John thinks that the idea of decentralization in itself is harmless, but it is the approach of the investors and the banks that could put a strain on this whole thing.
Regulators have been ringing the bells for a long time on crypto investment and the market in general and have said multiple times that the need to develop a legal framework around crypto is today. But nobody seems to care much for it until now. Therefore, the regulation is a must, and it should tag along with the process of transitioning crypto with the fiat world.