Mainstream financial world sends mixed signals as crypto challenges experts

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It wasn’t supposed to be that way. Not in September, when the crypto market is lagging behind. And yes, a slight increase in October, but not so fast. While traditional financial markets have taken investors in in recent weeks, the world of digital currency has not so quietly gained momentum, proving that crypto is here to stay.

Bitcoin climbs back above $ 50,000 as it starts October on a tear, this is how CNBC summed up the performance of the world’s leading cryptocurrency, as it continued to rise, raising more other parts with it.

Cointelegraph put it in an even bigger perspective. Bitcoin (BTC) is officially the best performing asset of 2021, data now confirms this, the news site reports. As October generates 15% gains in five days, BTC is firmly outperforming macro assets around the world to seal cumulative returns of just under 50%.

As traders and hodlers have taken to social media to celebrate, views from the mainstream financial market remain mixed, starting with Jamie Dimon, CEO of JPMorgan Chase. In a widely publicized interview with Axios, he said of Bitcoin: “It has no intrinsic value. And regulators are going to regulate the hell out of it.”

Dimon, a constant opponent of crypto, went further to reinforce the negative narratives that are often expressed about crypto, adding: no, “he said in the interview.

Interestingly, JP Morgan has been at the forefront of adopting the cryptocurrency world. It is the first bank to offer its clients investment opportunities in Bitcoin and crypto funds. Its JPM Coin, the bank’s internal stablecoin, uses blockchain technology to facilitate the reconciliation of payments around the world.

So a lot to preach. However, as Dimon said, if that’s what customers want, that’s what customers get.

He’s not the only financial influencer who continues to sit on the fence amid the rise of crypto. Regulators continue to flip-flop amid growing demand and public acceptance of digital currencies.

The US Federal Reserve said this week that it was ready to launch a review on the central bank’s digital currency issuance (CBDC). But not everyone is on board.

Fed officials are divided on the issue, making it unlikely that they will decide whether or not to create a digital dollar anytime soon, reports the Wall Street Journal.

Supporters say a digital Fed dollar could speed up and reduce the costs of moving money through the financial system, get people there who don’t have bank accounts, and provide the government with an efficient way to distribute money. financial aid, according to The Journal.

However, Reserve skeptics are cautious, citing the role of the US dollar in the international community and fears that a digital dollar could destabilize the value of currencies.

Still, there appears to be a heightened sense of urgency in making a decision on a US CBDC, which could be fueled by China’s testing of its digital currency, e-CNY, or digital yuan.

Although a widely used digital euro, yuan or dollar could be years away, such projects could significantly disrupt the global financial order, reports Reuters. Some in Washington fear that the United States will cede its dominance over the global financial system if it does not digitize the dollar, currently the world’s reserve currency.

Government institutions by nature are known to be cautious and traditional financial institutions can be the same. However, the big banks are taking bigger steps to recognize the value and acceptance of cryptocurrencies.

“Banks are capitulating one by one,” Martha Reyes, head of research at BEQUANT Prime Brokerage and Exchange, told Reuters. “For those of us who work in space, that it’s too big to ignore is hardly news, and regulators are certainly not ignoring it.”

His take follows the announcement that US Bancorp has launched crypto custody services for institutional investment managers, as well as Bank of America adding research coverage on crypto assets.

As the general public continues to struggle with the rise of cryptocurrency, their mixed signals send the message that maybe, just maybe, digital currencies are now too important to ignore and need to be dealt with quickly. October could be a key month for crypto. Let’s wait and see.

Joyce Pavie Hanson

Donor

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