Regulated stablecoins are at the center of policymakers’ attention. At the World of Web3 (WOW) Summit on March 29-30 in Hong Kong, a digital space regulatory professionals panel discussed the future use of crypto assets, specifically stablecoins.
The discussion was titled “Digital Assets: Policies & the Road Ahead.” Experts discussed how regulated stablecoins would continue to be used this year and how the current crypto market development will aid in ensuring this.
Looking at the rapid growth of the crypto market, the first deputy to the Danish Parliament, and an advocate for blockchain technology and innovation, Alexandra Sascha, shared her thoughts. He predicted that regulated stablecoins would get a strong boost.
Stablecoins Will Gain Support As Regulators Seek To Regulate Them
Alexandra said that despite the broad adoption of regulated stablecoins, there are still two types of demands in the crypto space.
“So I think there’s still two forms of need because you will have people who will want to centralize the digital era, and you will always have the people who do want this decentralized way of using payments, of course, unless it gets banned, but I do not think that’s the goal of anyone.”
Furthermore, the commissioner of the Securities Exchange Commission of the Philippines, Kelvin Lester Lee, said he is not sure whether regulated crypto assets will be successful in 2023.
As well as, Professor Douglas Arner, working in the areas of the interconnection between technology and finance regulation at the University of Hong Kong, contributed to the discussion. He said this decade would be a competition between decentralized and centralized approaches.
Arner noted that competition applies just as intensely in the context of the metaverse as it does in the crypto space. He believes there will be a spectrum of different structures at the end of this decade. This will propel regulated stablecoins as blockchain applications’ most widely used financial instruments.
Meanwhile, the future of regulated stablecoins is not clear. Panelists agreed that crypto assets would likely become important to the financial space. As the crypto space expands in diameter, it will be fascinating to notice how regulatory policies ensure the continued growth and use of crypto assets.
People linked with the crypto industry continue to get benefits as well as suffer losses. Therefore, the market demands a strong regulatory system.
Last week, a startup-focused Silicon Valley bank’s failure rocked the crypto market. Circle, which issues the second largest stablecoin, USD Coin (USDC), stated that it saved only $3.3 billion in deposits held by the failed lender, which caused the USDC to fall in value.