CME Group CEO: Bitcoin’s Finite Supply is Rekting Regulators Who Won’t Want an Even-for-Even Borrowing Basis


The CME Group has been working to get their request for a Bitcoin ETF approved, but that is not the main focus for the company today. CEO Terry Duffy recently commented on the challenges that regulators face in establishing precedents for cryptocurrency, naming the finite supply of Bitcoin as a challenge.

Without the ability to run BTC on a deficit, there are other issues that arise in regulation, considering that even a government cannot run without a deficit. Duffy commented that it is confusing that they would go without a deficit because it means that there is nothing to borrow against.

The limited supply is a major obstacle to cryptocurrencies in reaching adoption, even though it is one of the greatest selling points of the market. Duffy noted that the apprehension regarding cryptocurrency can also be credited to how youthful it is as a financial instrument, making it

“hard to get comfortable.”

Considering the link that stablecoins have with the dollar, Duffy believes that the easiest way to gain traction is with one of these crypto assets. They have the greatest similarity to the traditional money that is presently in place in the market, and regulators will have to make fewer compromises to figure out how to handle their presence in the economy.

Duffy brought up a stance that he had held in February during an interview with Bloomberg. In the interview, he said that the most likely chance that the cryptocurrency industry had of seeing major commercial banks involve will be as governments accept crypto around the world. Over the last few years, many countries have begun working on regulations, but there is still much progress left to be made.

In the opinion of many experts and entrepreneurs in crypto, the best mainstream use case right now appears to be stablecoins. The Winklevoss twins, known for the Gemini exchanges and several other investments, recently launched the Gemini dollar (GUSD), which is a dollar backed stablecoin. The duo believes that the future of innovation in the crypto space will be anchored in tokenized securities and stablecoins, offering a balance between these two industries filling up the economy.

https://bitcoinexchangeguide.com/todays-btc-eth-ltc-and-xrp-coin-analysis-top-cryptocurrency-forecast-and-predictions/

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