German Central Bank is being especially cautions when it comes to the matter of digital currencies. In the last remarks from the German banking veteran, Deutsche Bank Official suggests crypto governance could legitimize investments. But when will this happen?
30 January, AtoZForex – Germany continues to lack behind on the adoption of cryptocurrencies at a consumer level. The trend provides quite a contrast to the initiatives that have been taking place in other countries.
Deutsche Bank Official Suggests Crypto Governance Could Legitimize Investments
The Chief Investment Office Head Markus Mueller has stated that governance that will legalize cryptocurrency investments could come into force in the next 5-10 years. Mr. Mueller has warned against currency investment in cryptocurrency only for those “who invest speculatively”. He also noted the following:
“Once security and the corresponding trust have been created, cryptocurrencies can be assessed and evaluated like established asset classes. It’s possible that the required governance will be in existence in five to ten years.”
The German banking giant has traditionally adopted a bearish view on cryptocurrencies as prices continued to increase. The bank has warned back in December 2017 that a major correction in Bitcoin was being “discounted as a small issue” by the global financial markets.
The obvious lack of volatility in traditional stock markets appeared as a key driver of investors’ appetite to a more risky investments. Deutsche Bank analyst Masao Muraki has stated:
“Now, a growing number of institutional investors are watching cryptocurrencies as the frontier of risk-taking to evaluate the sustainability of asset prices.”
Earlier this month, the central bank of Germany’s director has opposed the remarks from the US and UK authorities at the World Economic Forum 2018. The officials stated that the regulation of cryptocurrency markets should be an international matter.
Switzerland Cryptocurrency stance
For instance, Germany’s neighbor, Switzerland, has been showing some interest in regards to the cryptocurrency market. In fact, back in October 2017, Switzerland financial regulator has granted the first full regulatory compliance license to the Bitcoin company. The breakthrough in Swiss cryptocurrency market has been achieved by the payment gateway Payment21’s owner – Moving Media.
The Swiss Financial Market Supervisory Authority (FINMA) is responsible for licensing financial market players in Switzerland. It has agreed to supervise the Moving Media GmbH as a compliant partner in the Anti-Money-Laundering (AML) and Know-Your-Customer (KYC) regulations.
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