The future of world economy currently being threatened by cryptolization crusade. The blogger Ibikunle Abraham Laniyan examines the solution that allays the fear of central bankers, policy makers,economists,regulators and captains of Industry respectively.Enjoy the reading.
However Unknown to acridulous orthodoxy,it is the world first most critical attempt at giving birth to free market.But rather than rejoice Central Banks are panicking and jittery elsewhere at the threatening magnitude of this unusual pace around the world.If there should be real threat ,it should be due to lack of robust ideaological ,technological and macrostructural macroeconomics and not necessarily due to lack of regulation.This has led to several crypto currencies and cryptofirms Inclusive of crypto exchanges and industry heavyweight crashed causing trillions of dollars worth of losses.
The growing popularity and high level of market volatility have raised both the research and stakes in the macrodigital asset experience,even though the level of adoption and Market awareness leaves much to be desired.Since Bitcoin creation in 2009,the uncommon explosion of crypto currencies in terms of popularity and collective worth perhaps due to lack collective model tied to universal prosperity more crash is imminent.To basically avert the stigma of further crashes the market explorative mode must take cognizance the unknown and undertapped universal prosperity Market .
Few rational sensible governments of the world have taken cognizance from this perspectival decorum.For instance,the giant strides of El Savador,Portugal, Singapore,UAE and Haiti to adopt the crypto as legal tender currency is somewhat identified with the immense Strategic benefit aligned with bsustainable economic development .This marvelment shocked the author to the bone marrow than even the so called most innovative clubs of rich countries were left behind struggling to recognize the immense benefits of the digital legal tender currency.
Obviously there is so much dreaded fear that in the span of few years the digital behemoths have grown astronomically to threaten the too-big-to-fail behemoths with further potential threat to disrupt the global financial system.This mode of digital Investment now used as currencies to buy goods and services like physical money including illegal drugs.Hence for the first time in living history free market with a universal deregulator was attempted unlike the hedge funds and SWFs wrestling away the regulatory power of money creation from Central Banks and wall street,something that could have been considered a criminal act and unthinkable some Hundred years ago.Critics noted the lack of regulation was responsible for its empowerment of drug trafficking, criminal groups,terrorist groups and so called rogue states.
Now it has become a norm.In February 2023 about 114countries Inclusive of America expressed desire to introduce their Central Banks digital currencies to tap in the crycurrency boom.
In the advanced climes where the infrastructure of development Market is fully functional the wealth and prices of crypto could be distributed fairly too easily between the top percentiles and bottom percentiles.The defiance of the wealth per Capital formula of technology macroeconomics to hedge against human Poverty index was instrumental to the crash.Infact many of the stablecoins tied or pegged to a traditional currency such as stable coins at $1per coin due to crisis of market volatility were knocked off their peg in 2022.It could have been better with prosperity peg and prosperity coin peg respectively.
In this volatile digital market Crypto should be protected when the right mass of technology macroeconomics is contrived further consolidate extant structure and act as the universal deregulators.The crash of Bitcoin from the peak of $60,000 in late 2021 down to almost two thirds led three-quarters of investors cried foul of monetary losses.(BIS.November 2022).
The history and politics of Western unfair regulation does not afford us the confidence to conclude such regulation could prevent future reoccurrence and could be fatal if adopted.It does not have the capacity to restore market integrity and boost positive experience of user protection and above all ensure finamcial financial systemic stabilty and avert systemic risk.
I do not believe many of these challenges can be strengthened by brutish conventional norms of financial regulation and supervision but uncommon standard to be implemented consistently by national deregulatory authorities.The recent IMF reports on Crypto ecosystem regulation add salt to injury reigniting the same ramshackled approach that failed to prevent some of the most disturbed period in economic history such as the repeated cycles of boom an bust experienced since great depression.The era of digital countries'financial systems'management of now sovereign digital assets require the institution of universal deregulators.Countries with large holdings and currency substitution through crypto assets primarily dollars denominated stable coins suffocated by material losses experienced cryptoization .A process when crypto assets are substituted for domestic currency assets, circumvent exchange and Capital control restrictions.
The main problem not the potential substitution to cause the capital outflows a sort of monetary sovereignty loss and threats to financial stability creating hurdles for policy makers but such challenges are held under control by pegging to national prosperity coins.Each nation or organization should be pegged to the coin owned by banks customers and empower inflows into the checking accounts of somewhat impoverished bank clients.The concept of prosperity cryptolization enables the local authorities to address whatever root causes of cryptolization in the banking system.
This prevents financial stability risks associated with cryptolization and does not matter whether the league of institutional Investors adopt increase in their stable coins.The issuance of prosperity stable coins backed by prosperity reserve Banking not fractional reserve Banking.This appears to be the best option to manage cryptolization risk.
Any comprehensive robust globally consistent crypto regulation and supervision is worth not its scam and trial should it defy the concept of prosperity pegging.The author pleads that the user risk containment being arduous for authorities to prevent be supported to grow unimpeded once the pegging is quite successful and might be a disservice for some countries taking rapid effort to curtail them.This notion of bans from some countries with sitting laws to reduce risk quite unaffordable.Subsaharan Africa for the most part as smallest region but fastest for crypto trading almost a fifth placed cryptos on enacted bans.Not proven to risk all with no general deregulator.
No comments:
Post a Comment