This article comes fromThe Block, original author: Aislinn Keely
Odaily Translator |
This article comes from
Odaily Translator |
The U.S. Senate Banking, Housing and Urban Affairs Committee held a hearing on "Reviewing the Regulatory Framework for Digital Currency and Blockchain" on the evening of July 30, Beijing time. Jeremy Allaire, CEO of cryptocurrency exchange operator Circle, University of California Mehrsa Baradaran, a professor at Irvine Law School, and Rebecca M. Nelson, an expert on trade and finance in Congress, attended as witnesses.
In addition to focusing on the regulation of blockchain technology, this hearing inevitably talked about Facebook's upcoming digital currency Lira. Furthermore, members of Congress are largely concerned that cryptocurrencies do not have enough capacity to expand global access to financial services, and are skeptical that Libra will fail to serve those without access to bank accounts. Mr. Odaily (WeChat: o-daily) helped everyone summarize the three main points of this hearing. Let’s take a look at it together.
secondary title
Can cryptocurrencies really help the unbanked?
Mehrsa Baradaran says:
“Rural areas are like banking deserts, what we need to do now is get these touchpoints and use digital cash to provide financial services to the unbanked. If cryptocurrencies can’t achieve mass adoption, no one can.” to this point."
Mehrsa Baradaran added that every "touchpoint" (i.e., places where traditional financial services cannot reach) can promote the widespread adoption of cryptocurrencies, but she believes that there is actually an easier way, which is to provide direct access to the unbanked. People create "touchpoints".
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Crypto companies are "fleeing" the US
Just as Libra chose to be based in Switzerland, Congress has raised questions about cryptocurrency companies choosing not to operate in the United States.
At the last Libra hearing, David Marcus, head of Facebook's blockchain business, answered the question of why Switzerland was chosen as the headquarters of the Libra Association instead of the United States. Similar problems also happened to Circle, but this time Jeremy Allaire did not move their company too far, but set part of their business in Bermuda, which is very close to the United States.
At the hearing, Jeremy Allaire said bluntly:
“There is a serious mismatch between the guidelines issued by regulators and the nature of crypto assets. Outside the United States, there are many countries that provide opportunities for the development of blockchain technology. If you look at some other jurisdictions, you will know that they We want really high standards of regulation, whether it’s cybersecurity, money laundering, regulatory risk, etc.”
Congressional trade and financial expert Rebecca M. Nelson also agreed with Jeremy Allaire's views, and said that some overseas cryptocurrency centers (such as Switzerland and Bermuda) have actually begun to use friendly regulatory policies to attract encryption companies.
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Facebook's Libra digital currency is still an unavoidable topic
Regulatory issues raised by members of Congress inevitably return to Facebook's digital currency Libra. Mike Crapo, chairman of the Banking, Housing and Urban Affairs Committee, believes that a global digital currency like Libra may not meet the requirements of many jurisdictions, including the United States. Digital privacy and other regulatory requirements.
In this regard, Circle CEO Jeremy Allaire believes that it is a good thing to implement unified encryption regulation on a global scale. He pointed to the Financial Action Task Force (FATF) guidelines as a good seven points. Earlier this year, the Financial Action Task Force (FATF) issued regulatory guidelines for virtual asset service providers, which have been accepted by many sovereign states and alliances around the world (including the G20), meaning that most jurisdictions District will abide by FATF guidelines.
