In recent days, Donald Trump's policies began to influence global cryptocurrency regulation. While he offers support for new technologies, the UK continues to exhibit caution in the field.
Trump's Support for Cryptocurrencies
Donald Trump has taken tangible steps to support the development of cryptocurrencies, marking an important signal on the international stage. He emphasizes the necessity for adequate regulation in this sector.
The UK’s Cautious Approach to Cryptocurrencies
Andrew Bailey, the Governor of the Bank of England, is known for his critical statements about cryptocurrencies. In an interview with Times magazine, he suggested that banks should deal with real money rather than tokenize assets linked to traditional currencies. He also proposed tokenized deposits as a more suitable option for banks, which would help maintain stability in the financial system.
Risks Associated with Cryptocurrencies
Andrew Bailey expressed concern over Bitcoin's rise, viewing cryptocurrencies as a risk to traditional markets. Despite this, major financial firms like BlackRock are already actively engaging in the cryptocurrency market. He noted that the collapse of stablecoins and the forced liquidation of collateral assets could represent significant market risks, casting doubt on the reliability of the existing financial system.
In conclusion, Donald Trump's actions to support cryptocurrencies may lead to significant changes in global regulation of this sector. At the same time, the UK’s cautious approach underscores the need for a thorough assessment of the risks associated with new financial technologies.
