Even though financial authorities have spread widespread distrust toward Bitcoin and its adversaries, cryptocurrencies have continued to build an ecstatic following. However, Stefan Ingves, Governor of Sveriges Riksbank, the central bank of Sweden, stated that
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.
He further added that the cryptocurrency regulation would probably come at different times in different areas. Asa Lindhagen, Swedish finance minister, has said that addressing money-laundering risk will demand cross-border work, implying that there will have to be some measure of international agreement.
The European Union has promised to “set up a thorough structure empowering the take-up of circulated record innovation (DLT) and crypto-resources in the monetary sector” by 2024 — one that will, similarly, tackle the dangers implied in these advancements’ standard take-up.
In the United States, the Federal Reserve’s Vice Chairman of Supervision, Randal Quarles, raised his matter that current administrative arrangements for crypto are insufficient.
The Fed is currently investigating how best to handle the issue. Quarles comments were made during seven days of erratic unpredictability in the crypto markets, with Bitcoin briefly shedding a lofty $15,000 in esteem all at once.
Moreover, Sweden’s central bank recently called in Handelsbanken and software firm TietoEvry for the most advanced stage of its central bank digital currency.
The bank is making progress by developing a central bank digital currency, the e-krona, the currency could be operational within five years.
Sweden is also among the most advanced economies in developing a central bank digital currency (CBDC). It is the only major country whose plans for a CBDC have advanced from discussion and research to testing. Cryptocurrencies’ continuous expansion and ever more mainstream adoption will surely keep international financial officials on their toes.
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