The stable coin fallout is returning crypto regulation calls into the spotlight. However, such attempts must not hamper progress, says PayBito CEO Raj Chowdhury.
PALO ALTO, Calif., June 13, 2022 /PRNewswire-PRWeb/ -- The collapse of the Terra and LUNA stable coin ecosystems shocked crypto enthusiasts and investors worldwide. Pegged to the US dollar, they were supposed to be less volatile than conventional digital assets. The wide-scale panic caused by the crash wiped out over $200 billion. The events are pushing forth the long-awaited demand for crypto regulation. PayBito CEO Raj Chowdhury believes while a crypto regulatory framework is necessary, care should be taken to ensure the imposed regulation does not decelerate crypto innovation.
Several causes have been attributed to the failure of stable coins. Some experts are pointing toward algorithmic errors in the token's architecture. Another possible explanation is the large-scale short-selling by institutional investors, which led to a de-pegging. The updated Terra token fell over 70% within 2 days of its issue. All these incidents recently brought together the Basel Committee, an association of 28 central banks and financial regulators, into a meeting regarding the need for a global framework to carefully mitigate risks from digital assets.
The PayBito Chief, also a blockchain pioneer, states, "The stablecoin disaster reflects a need for proper redressal of underlying issues and adherence to a standardized framework. The domino effect can be prevented with proper regulatory steps upholding the spirit of innovation."
The ongoing worldwide inflation presents a good investment opportunity in digital assets. Originally designed as inflationary hedges, crypto wealth allocation patterns of institutional investors are reflective of their beliefs in the long-term potential of cryptocurrencies. Choosing the correct option is crucial, as crypto markets are well-known for being volatile.
"Global crypto adoption is evident from its market capitalization surpassing a trillion US dollars. Cryptocurrencies will inevitably play an integral part in transforming the future financial system. Stalling its growth will simply be a deterrent to progress," concluded Chowdhury, who had previously explained that inflation would prove to be the ultimate test for cryptos, and how their evolution rests upon balance and active association.
The Chowdhury-led PayBito is a US-based global crypto exchange. A frontrunner in integrated crypto-forex technology, PayBito's crypto trading platform offers cutting-edge security features with multiple trading options as well as crypto collateralized lending and banking solutions. Institutional investors venturing into crypto trading services can avail PayBito's white label solutions for crypto exchange, portfolio management, algorithmic trading, custodial services, and more. The exchange has recently announced discounts on all of its white label products for a limited time.
The growing demand for crypto regulation is justified considering the stablecoin crash has wiped valuations worth billions leading to crypto market instability. A stable regulatory framework keeping room for innovation will be beneficial for both crypto development and the community as a whole.
- About Raj Chowdhury:
Raj Chowdhury is the Managing Director of HashCash Consultants and PayBito. Raj pioneered the first interbank Trade Finance and Remittance implementation of Blockchain Technology between two of the largest global banks. Raj is an eminent voice in the Blockchain and Cryptocurrency space and actively engages with policymakers in this area. He is a contributor to Economic Times, Business World, CNNMoney and advises industry leaders in the adoption of Blockchain. He is a member of Asha Silicon Valley, a nonprofit committed to education for children in emerging countries. Author of the book 'The Dark Secret of the Silicon Valley', Raj is an investor in blockchain and cryptocurrency companies and an active member of the philanthropic community.
Media Contact
COLEEN F, Hashcash Digest, +14159662907, [email protected]
SOURCE PayBito
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