Bank for International Settlement researchers find that crypto investment doesn't require special policy
July 2, 2021, 3:35PM EDT
1 min read
In a working paper published on July 1, researchers with the Bank for International Settlements looked at trends among crypto investors.
Central to the research was a refutation of the idea that crypto investors are predominantly investing in defiance of government-issued or fiat currencies. The authors lead the paper with the claim that "we disprove the hypothesis that cryptocurrency investors are motivated by distrust in fiat currencies or regulated finance."
Rather than being an investment in the death of fiat, the researchers say that crypto investors are attracted to old-fashioned speculation, meaning that the area doesn't need new regulation:
"From a policy perspective, the overall takeaway of our analysis is that as the objectives of investors are the same as those for other asset classes, so should be the regulation. Cryptocurrencies are not sought as an alternative to fiat currencies or regulated finance, but instead are a niche digital speculation object."
The researchers also looked for patterns of overall digital asset investment based on race, gender and education level. Especially interesting is a chart they put out correlating ownership of specific crypto assets with education level.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.