We find the most important headlines in digital assets for the week and give you our take. This week’s themes were institutional adoption and regulation, here are your headlines for July 19th, 2021:
Bank Of America to offer Cyrpto Futures to Clients
Synopsis: Bank of America, the second-biggest bank in the U.S. by assets, is wading deeper into the $598.23 billion bitcoin market, offering some Wall Street investors a way to interact with the cryptocurrency. This follows their announcement last week that they were opening a Crypto research desk.
Theme: Institutional Adoption
Our Take: BOA is part of a long list of banks offering Crypto exposure to their clients via futures. No major banks currently offer spot exposure because of regulatory uncertainty. We believe most intuitions will limit themselves to offering derivatives until regulatory frameworks have more clarity and there are more robust custody solutions.
More than half of experts in a recent crypto survey said bitcoin will replace fiat currency by 2050
Synopsis: 54% of fintech experts surveyed expect bitcoin to overtake currencies issued by central banks in global finance by 2050.
Theme: Cryptocurrency Adoption
Our take: El Salvador will not be the last country to adopt Bitcoin as legal tender, whether the world’s super powers will allow the replacements of their fiat currencies is a completely different conversation.
Fed Chair Jerome Powell says that U.S. needs a ‘strong regulatory framework’ for stablecoins
Synopsis: Federal Reserve Chairman Jerome Powell said Wednesday that U.S. is at a ‘critical point’ for regulation of digital currencies, advocating for the application of new rules on some digital payment tools that are similar to those applied to bank deposits and money-market mutual funds.
Theme: Regulation
Our take: Broad frameworks are needed for the entire industry, not just stablecoins. We do agree that stablecoin trust is integral to the market because a failure point in any of the stablecoins will cause a cascade that will reverberate through the entire marketplace.
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