The Commodity Futures Trading Commission (CFTC) chairman, Christopher Giancarlo in a recent interview with CNBC expressed his view about cryptocurrencies and shared his believe that digital currencies will be here for the long term even if they may never achieve the goal of completely replacing fiat currency.
Explaining the basis for his assertion, the CFTC boss stated that cryptocurrencies especially Bitcoin will achieve wide spread adoption in two-thirds of the world. In his words,
I personally think cryptocurrencies are here to stay.I think there is a future for them. I’m not sure they ever come to rival the dollar or other hard currencies but there is a whole section of the world that really is hungry for functioning currencies that have their local currencies not functioning or falling short.
Speaking further, he stated
“There are 140 countries globally with each having its peculiar currency; and two-thirds of them are not worth the polymer or paper they’re written on, and those parts of the world rely on hard currencies. Bitcoin or another cryptocurrency may solve some of the problems.” Just as he made reference to Venezuela’s rising inflation and the current crash of national fiat currencies in various countries.
Chairman Giancarlo who is nicknamed ‘CryptoDad’ in lieu of his testimony at a congress hearing where he defended cryptocurrency and advised legislators not to dismiss it just because it appeals more to younger investors; has been known to publicly back virtual currencies especially in his forecast on long term dominance and utility.
In his final note, when asked whether he is worried the US might lose its position as a leader in crypto innovation as a few other countries like Malta had taken most crypto headlines through adoption; Giancarlo answered ‘the U.S. is ahead of the world in many areas of the blockchain industry’ with reference to launching cryptocurrency derivatives like Bitcoin futures trading, options and clearings. However, he advocated the need for a ‘two-handed’ approach in cryptocurrency regulation citing the early days of the internet; he proposed one hand to allow for more crypto innovation and the other hand to ensure more cautious measures in approving cryptocurency products by the CFTC and sister agencies; with investor’s protection being top priority at both ends.
FEDERAL COURT: Cryptocurrencies to Be Treated As Commodities
On Wednesday, the U.S. federal court had declared virtual currencies as ‘commodities’ while stating that cryptocurrency falls under the definition of commodities with respect to goods, articles and services dealt in. This ruling by the court has strengthened on a wider scale the CFTC’s jurisdiction power to exercise authority as commodity police in a bid to curb and prosecute fraud in the cryptocurrency markets.