Blockchain technology holds a lot of promise, says Fmr. FDIC Chair Sheila Bair.
However, she argued that most of the promise of the blockchain industry is speculative.
Cryptocurrencies with value will operate in a clear regulatory environment.
Blockchain technology holds a lot of promise
Sheila Bair, the former chair of the Federal Deposit Insurance Corporation (FDIC), told CNBC in a recent interview that she believes blockchain technology holds a lot of promise.
Bair, who is also the executive director of Paxos, a blockchain technology company, said;
“I have always differentiated the asset from the technology. I do think the technology holds a lot of promise for socially beneficial uses like payment systems and tracking supply chains. There are a lot of interesting use cases that can and should be developed. The problem is most of this industry has just gone to the speculative assets, and that works until it doesn’t.”
She added that cryptocurrency projects that don’t have value are being punished by the market while those that have value will operate in a clear regulatory environment to help nurture the technology where it socially benefits the society and have regulation shut it down where it is not.
Crypto space news clear regulation
Her comment comes barely two weeks after Binance CEO Changpeng Zhao stated that the crypto sector needs clear and stable regulations.
When asked about the slow regulatory approach toward the cryptocurrency market, Bair said;
“There is a disappointing lack of agility in our regulatory system. We saw that during the Great Financial Crisis when the regulators were slow to respond. Part of it has to do with our vulcanised regulatory structure, with the SEC, CFTC, FDIC, and several other regulatory agencies all tasked to handle various jobs. So when it comes to regulating the market, there is a turf war between the regulatory agencies when the focus should be on regulation.”
The former FDIC boss also urged Congress to allow the regulatory agencies to regulate the market and meddle less in the affairs.
This latest cryptocurrency news comes as the broader crypto market slowly recovers from yesterday’s slump. The total crypto market cap is heading toward the $850 billion mark after adding more than 2% to its value today.