The CIO of CCLA Investment Management James Bevan has expressed his thoughts that he doesn’t think that the current cryptocurrency market crash is an existential crisis.
‘Just A Bump On The Road’
Bevan, who was once a Barclays Asset Management Group CIO, further expounded that the dip in currency prices can be compared to a bump in the road for institutional investors who are used to such in the conventional currency transaction systems.
Bevan was speaking at the Bloomberg Crypto Summit this week when he made the comments about the ailing crypto market. According to him, what we were witnessing is part of growing pains which would eventually fade away as the market grows strong.
His words were echoed by fellow panellists, for instance, Lewis Fellas co-founder and Chief Investment Officer at Bletchley Park Asset Management. In his own words, Lewis said that the new stablecoins market has lots of potentials. There are currently over 120 different stablecoin projects that are under development.
Even though they all agreed that the current currency price was not near recovery any time soon, they did, however, predict that the same market would recover gradually. In addition, the panel expressed views that the crypto market would undergo more regulations in the near future to streamline it for immense investments.
The panellists also predicted institutional investor involvement, a higher level of integration with the traditional asset classes and a lower level of volatility to collide with the market in its next phase.
Stablecoins, Security Tokens To Perform Well
The panellists also identified stablecoins and security tokens as the two key areas of growth to watch out. Security tokens, which are a relatively new digital asset are contracts representing ownership in traditional assets like real estate and stocks. Lewis fellas sees the current state of the digital asset industry as a starting point of an imminent expansion.
CEO of Coinshare, Ryan Radloff who was also a member of the panel, however, noted that the environment has to be fairly lenient in terms of regulatory guidelines. He explained that if less stringent regulations were allowed in certain places than others, then areas, where crypto is tightly regulated like the US and UK, would face more challenges than areas with smaller jurisdictions like Malta.
Acknowledge The Work Being Done
Marieke Flament, global chief marketing officer for Circle Internet Financial and a panelist at the summit says that it’s a good example when large countries steps in and show the way when it comes to the regulations of digital currencies policies. According to Flament, when countries step forward and formulate their own policies, it is a starting point to countries that are waiting to follow.
One of the countries that were on the waiting watch is India which had not moved forward in regards to framework regulations for cryptocurrencies.
However, following a report by India’s reserve bank which acknowledged the benefit of learning how regulators from other countries were coping with financial technology, the country has resolved to learn about digital asset regulations from the UK, Switzerland and Japan.