Blockchain’s promise is mostly speculative, says former FDIC Chair

  • Blockchain technology has a lot of potential, says Fmr. FDIC Chairman Sheila Bair.

  • However, she argued that most of the blockchain industry’s promises are speculative.

  • Any cryptocurrency of value operates in a well-defined regulatory environment.

Blockchain technology has many possibilities

Sheila Baer, ​​former chairman of the Federal Deposit Insurance Corporation (FDIC), said: told CNBC In a recent interview, she believes blockchain technology has a lot of potential.

Bair, who is also executive director of Paxos, a blockchain technology company, said:

“I have always made a distinction between assets and technology. I think this technology holds great promise for socially beneficial uses such as payment systems and supply chain tracking. There are many interesting use cases that could be developed. The problem is that most of this industry has ended up with speculative assets that will work until they stop working.”

She argues that worthless cryptocurrency projects are being punished by the market, while those of value operate in a clear regulatory environment, fostering technologies that benefit society, and are otherwise shut down by regulation. added. .

Crypto Space News Clear Regulation

Her comments come just two weeks after Binance CEO Changpeng Zhao said of the crypto sector: Need clear and stable regulation.

When asked about the slow regulatory approach to the cryptocurrency market, Baer said:

“Our regulatory system unfortunately lacks agility. This was seen during the Great Financial Crisis when regulators were slow to respond. , and several other regulatory bodies are all concerned with a vulcanized regulatory structure tasked with handling various tasks, so when it comes to regulating the market, when regulation should be the focus And there are turf wars between regulators.”

The former FDIC boss also urged Congress to allow regulators to regulate markets and reduce their interference in affairs.

this latest cryptocurrency news As the broader crypto market slowly recovers from yesterday’s slump. Today’s cryptocurrency market capitalization is heading towards $850 billion after increasing its value by more than 2%.

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