Business relationship of cryptocurrency and institutions and regulatory bodies is essential for the future of digital currencies. 2020 was a very profitable year for the markets dedicated to digital assets and as shown by the growing inflows also in the institutional field and an air of change in the regulatory field. An example of this trend is the letter written by the US SEC, according to which, the exchange of cryptocurrencies are free to quote digital assets such as security.
Over 50 million people around the world invest and trade in the cryptocurrency industry with significant volumes and figures that recently prompted Goldman Sachs to appoint a Global Head of Digital Assets, as also done by JP Morgan in the month of February. Goldman's choice represents a reversal, if we consider the comments described in the May report, in which one of the analysts questioned the legitimacy of the Bitcoin as an asset.
Digital markets are changing, however, and that's good speculative in nature, driven exclusively by individual traders, to an activity of "Buy and hold" long-term. In the last period also several companies operating in the financial and economic transactions fields such as PayPal, Visa and Mastercard, have moved closer and closer to digital markets. Visa in his blog he stated that digital currencies have the potential to extend the value of digital payments to more countries and people.
More and more governments and organizers around the world are embracing digital assets in the trading sector, investments and even non-intermediate payments. As proof of the momentum, this year the World Economic Forum has also set up a consortium with the aim of being able to better regulate digital currencies, including stablecoins which are issued by governments and which therefore are increasingly closer to the Central Banks.
The cryptocurrency firms they have been waiting for years for a framework that is harmonious and leads to inclusive federal and state regulations. In any case, the latest developments make the markets much more attractive and the participants more interested in entering the sector.
A report that also collected the words of Ria Bhutoria, head of research of Fidelity Digital Assets he has declared: the interpretative letter that was released by the OCC in July 2020 represents a very important step forward in increasing the tranquility of even traditional institutions on digital assets. To the extent that institutions are regulated by the OCC they provide custody services for digital assets, and more investors and users may be comfortable trading, interacting and holding digital assets through intermediaries that comply with the strict regulatory standards of a federal agency that is charged with administering the US banking system.
That said, only progress in the regulatory and infrastructural fields will allow support digital markets and assets.