Central Bank governors and Finance Ministers of the G20 nations will meet in June. This could see them table a regulatory framework for cryptocurrencies. This framework has been in the works for three months according to reports in Japanese media.
The leaders met in December 2018 and signed a joint declaration. The joint declaration was to push for a common regulatory framework regarding cryptocurrencies. A key point of their declaration was that the regulatory framework would abide by standards set by the Financial Action Task Force (FATF).
Mixed feeling in the crypto community
While many have been delighted with this news, there are a few investors and companies who not happy. They believe that regulation could stifle innovation and growth of cryptocurrency. They also bemoan that the regulations will strip cryptocurrency of its private nature. These investors and companies are aware that regulation needs to happen but do not want it to break what cryptocurrency is at its heart.
There are more people who are positive about the outcome of a joint push for regulation. Should the framework be tabled at the June meeting, it acceptance would herald a new age for the cryptocurrency. It would that cryptocurrency, for the first time since it broke out, will be widely accepted. This will allow for the key technical aspects to be used in an easier manner.
The most optimistic see a golden age of cryptocurrency coming due to these regulations. The growth of blockchain based services has been meteoric since early 2018. The Bitcoin crash allowed people who only trade crypto to move aside for people who were focused on development. This means that previous systems are more robust. It also means that distributed ledger technology has found more uses in more business sectors.
Bitcoin bulls get people talking
The recent movements in the price of Bitcoin relative to the US dollar have gotten people talking again. Bitcoin broke the $5000 ceiling late in the last few days, and it has set the financial world alight. Many commentators have been tweeting about Bitcoin being on a growth path again.
There has been an increase in the usage of cryptocurrencies over the last year. There are still regulatory hurdles remaining, so the upcoming G20 summit will be watched closely by all participants.
The key aspect for many people who are not directly involved in Bitcoin is one of security and PR. Industry players claim that the average consciousness of Bitcoin is low. The only news that comes to average consumers is that Bitcoin was used for criminal enterprises. There is very little true understanding. These industry players are hoping the G20 regulatory framework will help improve the standing of Bitcoin.
However, there have been no leaks in any press with regards to what the regulations might contain. Until such time that concrete information is available, industry leaders can only speculate to how the market will change following the June meeting.