Cryptocurrencies like bitcoin are digital and decentralized currencies that people around the world use to complete transactions online. Furthermore, this digital currency is one of the world's most successful cryptocurrencies, some even calling it "digital gold." It is also the most commonly traded asset on digital platforms or crypto exchanges.
As bitcoin and other digital coins continue to gain ground and increase in value despite volatility, more and more people are entering the cryptocurrency market. According to estimates from Time, investors believe that Bitcoin prices will reach over $110,000 in five years and are close to passing the $100,000 mark.
EU Bigwigs to Tackle Crypto Legislations
With this, European leaders hope to shed more light on the matter during the upcoming International Monetary Fund meetings. Many officials are interested in investigating the cryptic nature of the growing digital currency due to its growing influence on the global economy.
Based on the most recent Bloomberg report, the European Union plans to meet with US officials next week at the International Monetary Fund-World Bank annual meetings to discuss the progress of crypto legislation as calls for a more globally coordinated policy structure grow.
"We have a crowded agenda for the US next week, and one of the items that will not be at the bottom of the list, but will be somewhere near the top, is crypto," EU Commissioner for Financial Services Mairead McGuinness told Bloomberg.
Because cryptocurrency eschews conventional monetary policies, governments may view it as a threat to their national currencies. Also, the economy could be negatively impacted by crypto's high volatility, novelty, and lack of regulatory oversight.
Some contend that cryptocurrencies encourage the poor to participate financially in their economies. This is because the decentralized ledger, low transaction fees, and ability to protect against inflation of this virtual currency increase transparency.
United Crypto Talks Soon?
The European Union managed to reach a provisional agreement on its pivotal Markets in Crypto Assets (MiCA) mandate in July, helping to bring years of discussion on how to manage and control the electronic assets industry to an end.
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According to a separate Bloomberg report, the European Securities and Markets Authority, or ESMA, will be in charge of industry oversight, while a new legal framework will seek to regulate public offers of crypto assets to protect market integrity.
Furthermore, top officials are said to be acting in response to a crypto meltdown that occurred in May. The collapse of one of the largest decentralized finance experiments, the Luna Foundation Guard (LFG), has raised concerns about the death of cryptocurrency and other security concerns.
Many people believed that if Terra's crash had happened after a couple more months of growth, the market effects would have resulted in decentralized finance, similar to the 2008 financial crisis. Experts clarified that crypto is not yet extinct, but the losses to stablecoins have been staggering.
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