Written by: George Prior
The U.S. governmental hearings on Facebook’s new cryptocurrency will boost the crypto sector and underscores that digital currencies are now mainstream.
This is the bullish assessment of the CEO and founder of one of the world’s largest independent financial advisory organizations, deVere Group.Nigel Green’s comments come as the social media giant prepares to defend its cryptocurrency project, Libra, on the Hill.The Senate hearing will take place Tuesday, with the House panel holding its hearing on (today) Wednesday.Mr Green affirms: “The high-profile scrutiny of this new cryptocurrency must be championed as cryptocurrencies are already part of the global financial system.“They are here to stay. And their influence is set to grow exponentially. As such, they should face the same scrutiny and meet the same standards and requirements as the rest of the financial system.“This is a step in the right direction for establishing a robust global regulatory framework for the wider crypto market.”Regulation is necessary, believes the deVere Group CEO, as it will provide further protection for the growing number of people using cryptocurrencies, the less likely it will be that criminals will use these digital payment methods, the less potential risk there will be for the disruption of global financial stability, and the more potential opportunities there will be for higher economic growth and activity in those countries which introduce it.He continues: “Whatever you think about Facebook's Libra as an individual cryptocurrency, these top-level U.S. governmental hearings underscore again that, as a concept, digital, global, borderless currencies are now a part of mainstream finance, and increasingly so.“This is why most major financial institutions, tech giants, and of course institutional and retail investors are increasingly involving themselves in the burgeoning sector.”The deVere CEO goes on to add: “Last week President Trump raised the issue of Bitcoin, with the effect of making cryptocurrencies become a presidential issue. The hearings this week will make them a global policy issue.“This all adds to greater awareness and acknowledgement of digital currencies that will further boost mass adoption and push up prices across the sector.”Following the President’s Bitcoin comments last week, Mr Green commented: “I agree with Mr Trump that Facebook’s new Libra project should be scrutinized.“But, being the social media monolith that it is, it is surely expecting this level of scrutiny. I would suggest that it is prepared for it, has the resources for it, and will welcome it, as it will make its cryptocurrency stronger.”Nigel Green concludes: “Facebook’s Libra will likely get through these hearings on Capitol Hill in a stronger position. The scrutiny, which could advance the cause of regulation, will be welcomed by crypto investors as it provides more confidence.“But whatever happens with the social media giant’s crypto project, it is clear from the top-level hearings that the U.S. government now understands that, whether they like it or not, people and institutions across the world are increasingly using a combination of sovereign and non-sovereign digital currencies.”Related: Trump Is Wrong on Bitcoin, Placing Himself on the Wrong Side of History