A piece of much more positive news on cryptocurrencies has come from Davos yesterday. The WEF has announced the establishment of a consortium for the monitoring of digital currencies.
January 27, 2020, | AtoZ Markets – The World Economic Forum (WEF), an international organization committed to improving the state of the world, has announced the creation of a global consortium that will come up with a governance framework for all cryptocurrencies including stablecoins.
Global consortium secures the future of cryptocurrencies
In a blog post, WEF announced that after extensive consultation among the global community members, an international consortium which will work closely with financial institutions, representatives of governments, developers as well as other global community members to analyze the type of crypto governance which can enhance financial inclusion.
Klaus Schwab, WEF founder who is also the chair, said that virtual currencies are a critical area of interest which needs input from different sectors, geographies as well as functions. He said:
“Building on our long history of public-private cooperation, we hope that hosting this consortium will catalyse the conversations necessary to inform a robust framework of governance for global digital currencies.”
The new consortium will aim at providing solutions to the current fragmented regulatory regime in different countries. The consortium will also advocate for an innovative regulatory approach in order to enhance technological advancement. The consortium is also expected to come with principles that will encourage the public and private players to work together. Both players will explore the various prospects that come with cryptocurrencies.
Global consortium backed by central banks
The international consortium has the backing of various central banks basically from the developing countries and different non-governmental entities. The consortium also has backing from Mark Carney of Bank of England. The outgoing governor has previously argued that cryptocurrencies have great potential.
The initiative received support from industry players such as Libra Association’s David Marcus, ConsenSys’ Joe Lubin as well as Neha Narula from MIT’s Digital Currency Initiative. They all praised the efforts taken by the WEF.
A bullish sign for cryptocurrencies?
In connection with this announcement, the Bitcoin price spiked from $8,200 to $8,400 within an hour yesterday afternoon. The bulls continued the uptrend towards $8,700 level before losing momentum at $8,690. Of course, it cannot be clearly demonstrated that there is a direct connection, but the assumption is obvious.
Cryptocurrencies like Bitcoin have enormous potential. However, the trust and acceptance of many people in this area are currently lacking. Uniform regulation would make BTC and other digital currencies more popular with the general public.
A good example of this is the Libra project. This actually started with good goals. Think of the slogan “Bank the unbanked”. But Libra is facing strong regulatory headwinds as there are still many unanswered questions. The announcement that the issue of better and more uniform regulation is now being dealt with at the highest level is clearly bullish for all cryptocurrencies, such as Bitcoin.
What do you think about the WEF Cryptocurrency Global Consortium? Add your comments below.