Cryptocurrencies’ persistent growth and ever more mainstream adoption is keeping international monetary authorities on their toes.
In fresh comments this week, Stefan Ingves, the Governor of Riksbank, Sweden’s central bank, said that digital assets’ rising popularity raises the stakes for regulators, central bankers and lawmakers worldwide:
“When something gets big enough, things like consumer interests and money laundering come into play. So there’s good reason to believe that [regulation] will happen.”
Devising regulatory frameworks for an asset that was initially designed to circumvent the very architecture and rules of traditional finance is no easy task. In the United States, the Federal Reserve’s Vice Chairman of Supervision, Randal Quarles, raised his concerns that current regulatory provisions for crypto are inadequate, indicating that the Fed is in the process of looking into how best to tackle the issue. Quarles’ remarks were made amidst a week of wild volatility in the cryptocurrency markets, with Bitcoin (BTC) temporarily shedding a steep $15,000 in value in one