Bitcoin Needs Government Backing, says CME official Terry Duffy

Bitcoin Goverment
Bitcoin Needs Government Backing, says CME official Terry Duffy
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Cryptocurrencies have spent a decade advancing and developing on their own, without the support from the government, central bank, or institutional investors. However, according to CME Group CEO, Terry Duffy, cryptocurrencies will never become more than a fringe investment unless they bow down to the government and get the authorities’ support.

Duffy believes that cryptocurrencies will find it difficult to get support from banks and financial institutions unless they receive official support from the government. Without support from a centralized authority, the resistance will simply be too great for cryptocurrencies to overcome.

While it is easy to buy Bitcoin in this day and age, Bitcoin futures are the product that is expected to attract the real cash flow to the crypto space. Duffy has stated that he was a big supporter on listing BTC futures on large exchanges, although he admits that there was a certain amount of doubt, considering the fact that cryptocurrencies are still a new asset class.

This statement was backed by the fact that the CME Group was actually the second regulated derivatives market in the United States to list Bitcoin futures. However, while they may be open to Bitcoin, which has the US SEC confirmation that it is not a security, Duffy stated that there is no rush when it comes to other crypto futures products. This was a calculated decision which aimed to protect the reputation of CME. While there is a possibility that other cryptocurrencies will be considered in due time, there is still a long way to go until that time comes.

JP Morgan joins the crypto space

Another unexpected move that has had everyone surprised was the recent JP Morgan announced that the bank would launch its own coin. The move did not only surprise everyone because the large Wall Street entity decided to take a leap of faith and join the crypto market without any foreshadowing, but also because JP Morgan’s CEO, Jamie Dimon, always insisted on being anti-Bitcoin.

Goldman Sachs did a similar thing, and while such moves encouraged Duffy, he states that it is not enough for the crypto space to gain the support of only two banks, even if they are as influential as these two.

While the institutional support might help cryptocurrencies out somewhat, governmental support is the real obstacle. Without the government behind it, cryptocurrencies will never reach mainstream adoption. According to Duffy, this is the key for any currency, be that crypto or fiat.

The future of Bitcoin ETFs?

future of Bitcoin ETFs
Source: Hacked

The matter of Bitcoin ETFs has received quite a lot of headlines, especially back in 2018. The US SEC has received numerous requests for their approval, although the regulator remained skeptical of the market being prepared to offer a proper service to institutions. While it may be easy to buy BTC on one of the exchanges or through the use of trading software without the government’s support, Bitcoin ETF still needs the approval by the SEC if it hopes to attract institutions.

One of the applications which were believed to have the biggest chance to gain approval was submitted last year by Van Eck and SolidX. However, the SEC delayed the decision several times, with the final deadline being pushed for the end of February 2019. Due to the government shutdown, the application was withdrawn, with hopes of being re-submitted at some point in the future, hopefully still in 2019.

However, the SEC’s Hester Peirce believes that it is unlikely that the SEC will approve any Bitcoin ETF application this year, even though she remains pro-crypto. After the SEC decided to reject the Winklevoss twins’ Peirce believed that the decision would stifle the innovation in the nascent industry. The SEC’s stance has apparently not changed at this time, which will likely leave the matter of Bitcoin ETFs unresolved in 2019.

About Ali Raza

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A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.