The stable currency disaster reflects the need for proper correction of the underlying problems and adherence to a standardized framework. The domino effect can be avoided with appropriate regulatory measures that maintain the spirit of innovation.
PALO ALTO, CA (PRWEB)
June 13, 2022
The collapse of stable Earth and MOON currency ecosystems has shocked cryptocurrency enthusiasts and investors around the world. Linked to the US dollar, they were supposed to be less volatile than conventional digital assets. The large-scale panic caused by the accident ended more than $ 200 billion. Events are driving the expected demand for cryptographic regulation. PayBito CEO Raj Chowdhury believes that while a cryptographic regulatory framework is needed, care must be taken to ensure that imposed regulation does not slow down cryptographic innovation.
Several causes have been attributed to the lack of stable currencies. Some experts point to algorithmic errors in the token architecture. Another possible explanation is the large-scale short selling by institutional investors, which has led to a disengagement. The updated Terra token fell more than 70% in the 2 days following its issuance. All of these incidents recently brought together the Basel Committee, an association of 28 central banks and financial regulators, at a meeting on the need for a global framework to carefully mitigate the risks of digital assets.
The head of PayBito, also a pioneer in the blockchain, says: “The disaster of the stable currency reflects the need for proper correction of the underlying problems and adherence to a standardized framework. The domino effect can be avoided with appropriate regulatory measures of innovation “.
Ongoing global inflation presents a good opportunity to invest in digital assets. Originally designed as inflation hedges, the institutional wealth allocation patterns of institutional investors reflect their beliefs in the long-term potential of cryptocurrencies. Choosing the right option is crucial, as cryptocurrencies are known to be volatile.
“The global adoption of crypto is evident in its market capitalization exceeding trillions of US dollars. Cryptocurrencies will inevitably play an integral role in transforming the future financial system. Stopping its growth will simply be an impediment to progress,” Chowdhury concluded. , who had previously explained that inflation would prove to be the definitive test for cryptocurrencies, and how their evolution depends on balance and active association.
Chowdhury-led PayBito is a US-based global cryptocurrency exchange. A pioneer in integrated crypto-forex technology, PayBito’s cryptographic trading platform offers state-of-the-art security features with multiple trading options, as well as banking and loan solutions with cryptographic collateral. Institutional investors who venture into cryptocurrency trading services can take advantage of PayBito’s white-label solutions for cryptocurrency exchange, portfolio management, algorithmic trading, custody services and more. The stock exchange recently announced discounts on all its white label products for a limited time.
The growing demand for cryptocurrency regulation is justified given that the fall in stable currencies has eliminated valuations worth billions, leading to the instability of the cryptocurrency market. A stable regulatory framework that maintains room for innovation will be beneficial to both cryptographic development and the community as a whole.
Raj Chowdhury is the CEO of HashCash Consultants and PayBito. Raj has pioneered the interbank implementation of commercial financing and remittances of Blockchain technology between two of the world’s largest banks. Raj is an eminent voice in the Blockchain and Cryptocurrency space and is actively involved with policy makers in this area. He is a contributor to Economic Times, Business World, CNNMoney, and advises industry leaders on blockchain adoption. He is a member of Asha Silicon Valley, a non-profit organization committed to educating children in emerging countries. Author of the book ‘The Dark Secret of Silicon Valley’, Raj is an investor in blockchain and cryptocurrency chain companies and an active member of the philanthropic community.
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