{"id":9068,"date":"2021-07-02T18:54:34","date_gmt":"2021-07-02T18:54:34","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/bis-economist-recommends-technology-neutral-crypto-regulation-low-cost-supervision-of-decentralized-markets\/"},"modified":"2021-07-02T18:54:34","modified_gmt":"2021-07-02T18:54:34","slug":"bis-economist-recommends-technology-neutral-crypto-regulation-low-cost-supervision-of-decentralized-markets","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/bis-economist-recommends-technology-neutral-crypto-regulation-low-cost-supervision-of-decentralized-markets\/","title":{"rendered":"BIS Economist Recommends \u2018Technology-Neutral\u2019 Crypto Regulation, Low-Cost Supervision of Decentralized Markets"},"content":{"rendered":"

An economist with the Bank of International Settlements has found that cryptocurrencies are not sought as an alternative to fiat currencies or regulated finance, therefore a \u201ctechnology-neutral regulation to this asset class\u201d is recommended. The economist discussed \u201cembedded supervision,\u201d adding that \u201cThe main aim is low-cost supervision of decentralized markets.\u201d<\/strong><\/p>\n

BIS Economist Suggests Regulatory Approach for Cryptocurrencies<\/h2>\n

The Bank of International Settlements (BIS) published a working paper Thursday on \u201cThe socioeconomic drivers of US cryptocurrency investments.\u201d It is authored by Raphael Auer, a principal economist for innovation and the digital economy at the BIS, and David Tercero-Lucas from Universitat Aut\u00f2noma de Barcelona (UAB).<\/p>\n

In the 52-page report, the authors state that based on an in-depth analysis of representative data on crypto owners:<\/p>\n

We disprove the hypothesis that cryptocurrencies are sought as an alternative to fiat currencies or regulated finance \u2026 Investors in cryptocurrencies show no more concern about the security of cash or commercial banking than the rest of the population.<\/p>\n

The study also revealed: \u201cCryptocurrency investors tend to be educated, young and male. People who have experience using digital finance are more likely to invest in cryptocurrencies.\u201d<\/p>\n

Emphasizing that investors continue to view cryptocurrencies as \u201ca niche digital speculation object,\u201d the authors detailed that \u201cA clarifying regulatory and supervisory framework for cryptocurrency markets may be beneficial for the industry.\u201d They added:<\/p>\n

From a policy perspective, the overall takeaway of our analysis is that as the objectives of investors are the same as those for other asset classes, so should be the regulation.<\/p>\n

The report stresses that \u201cBetter regulation may also be beneficial \u2013 quintessential in fact \u2013 for the industry.\u201d<\/p>\n

<\/p>\n

It proceeds to discuss applying \u201ctechnology-neutral regulation to this asset class, while at the same time harnessing the potential of the technology itself in the supervision process.\u201d The authors suggested:<\/p>\n

One promising option that supervisory and regulatory agencies could pursue is \u2018embedded supervision\u2019 \u2026 The main aim is low-cost supervision of decentralised markets, which may be particularly relevant amidst recent deliberations of the need for adequate prudential oversight of the cryptocurrency industry.<\/p>\n

By embedded supervision, \u201cwe understand implementing a supervisory framework for cryptocurrencies that allows for compliance to be automatically monitored by reading the market\u2019s ledger,\u201d the report clarifies.<\/p>\n

What do you think about the BIS report\u2019s findings? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, BIS, bis bitcoin, bis crypto, bis crypto regulation, bis cryptocurrency, Bitcoin regulation, Cryptocurrency regulation<\/p>\n","protected":false},"excerpt":{"rendered":"

An economist with the Bank of International Settlements has found that cryptocurrencies are not sought as an alternative to fiat currencies or regulated finance, therefore a \u201ctechnology-neutral regulation to this asset class\u201d is recommended. The economist discussed \u201cembedded supervision,\u201d adding that \u201cThe main aim is low-cost supervision of decentralized markets.\u201d BIS Economist Suggests Regulatory Approach…<\/p>\n","protected":false},"author":0,"featured_media":9069,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-9068","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/9068"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=9068"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/9068\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/9069"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=9068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=9068"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=9068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}