Could Stock Exchanges Really Help Cryptocurrency Adoption?
Every true supporter of cryptocurrency has at the foremost part of their minds, the increased adoption of cryptocurrencies all over the world. Proponents, especially the major stakeholders of the industry, are always looking for ways to incorporate cryptocurrency into parts of our daily lives in a bid to increase adoption as much as possible. This adoption is now reaching a few fiat stock exchanges as some of them now officially offer cryptocurrency services.
Stock Exchanges Supporting Crypto
Very recently, Nasdaq – which is the second largest stock exchange in the world and only second to the New York Stock Exchange – officially began showing indices for Bitcoin (BTC) and Ethereum (ETH). The major stock exchange of Switzerland known as SIX, also listed a product based on Ripple’s XRP. However, much more recently on Wednesday the 3rd of April, it was officially revealed that the Jamaica Stock Exchange (JSE) has concluded plans to begin a test period that will see the stock exchange trading the two largest cryptocurrencies in the market – BTC and ETH.
One of the reasons for the JSE’s inclusion of crypto is its profitability. Another could also be a way to push for a proper outline for regulating crypto. The managing director of the JSE, Marlene Street Forrest, expressed these saying that it was important for a “safe, efficient and transparent regulatory framework.” Marlene also said that officially trading these cryptocurrencies “is an unprecedented opportunity for the JSE to diversify its product offerings and attract new listings and inbound investments.”
Why Are Stock Exchanges Now Officially Incorporating Crypto?
According to Mati Greenspan who is a senior market analyst at the popular investment service firm, Etoro, the reason these stock exchanges are now incorporating cryptocurrency is simply because crypto is almost impossible to ignore and these institutions want to get in on it.
“Institutions have realized that crypto is here to stay and have been looking for ways to seize the opportunities presented by crypto assets. The Jamaica Stock Exchange news is yet another sign that adoption happens gradually in front of your eyes until you pause for a bit, look around, and realize that crypto is front and center of the investment landscape.”
Could The Official Recognition Of Crypto By These Stock Exchanges Help?
There’s a huge chance that this move by major stock exchanges could help build faith in crypto. Stock exchanges are generally quite welcoming of crypto and don’t feel like the support of crypto will eventually put them at a disadvantage the way many banks feel. For example, when Nasdaq announced that it would start giving immediate information on Bitcoin and Ethereum, many people praised the idea and hoped that such a move would do a lot to help adoption especially as far as Wall Street is concerned. Nasdaq has gone ahead to issue a few articles which analyzed Bitcoin, giving the crypto more publicity.
Marvin H. Coleby who is the CEO of Raise – a service that deals in digital securities – has expressed his opinion that even though investors all over the world still prefer proper equities instead of cryptocurrency, the fact that more stock exchanges are taking a considerable interest into the sector will help these investors have more faith in crypto. Speaking on stock exchanges, Coleby said:
“People trust them, institutions trust them and governments have developed safe regulatory frameworks for them to operate. They are by far one of the most important examples of human efforts to distribute economic wealth via fractional financial instruments to anyone around the world. Their buy-in of distributed ledger-based assets is not only a huge stamp of approval for crypto and other similar digital assets, but it means that those stock markets will make it easier for people to access assets around the world.”
Crypto Recognition Can Only Improve
It’s true that a lot of charlatans hope to use crypto for unscrupulous endeavors and this much was acknowledged by Marvin. However, it’s impossible that official Stock Exchanges could fall into that category. Coleby said:
“Exchanges and stock markets are some of the best-placed institutions to understand fractional and divisible financial products that are characteristics of many cryptocurrencies. This seems like a genuine attempt to enter and legitimize the market.”
He also expressed that:
“I hope that centralized stock markets like the JSE take more seriously how the world will be moving away from centralized exchanges, and the impact that smart contracts will have on the traditional roles of custody and settlement served by centralized exchanges.”
It’s important to note that apart from Jamaica, there are other parts of the Caribbean who are not only accommodating of cryptocurrency but may also be trying to figure out more ways to help regulation and improvements in technology. Some of these include Bermuda, Barbados, and the Bahamas.