Elon Musk says Tesla will accept dogecoin “is the most crypto story in 2021”: CoinDesk Editor

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Emily Parker, editor-in-chief of CoinDesk Global Macro and TV presenter, joins Yahoo Finance Live to weigh in on large companies like Tesla that are considering cryptocurrency payments, in addition to highlighting the expectations of the Senate Committee hearing. banks on stable coins.

Video transcript

AKIKO FUJITA: Well, it’s been a historic year for crypto on many levels, from El Salvador adopting Bitcoin as legal tender to the explosion of NFTs and the regulatory debate. So what exactly does all of this mean in terms of what lies ahead for 2022? Let’s introduce Emily Parker, CoinDesk Global Macro Editor, and anchor it. And Emily, you know, before we come to you, before the break, we were talking about Elon Musk, the spike we saw on Dogecoin. I mean, does that pretty much sum up what we saw last year?

EMILY PARKER: Yeah, I feel like what just happened with Elon Musk, in some ways, is the most 2021 crypto story ever because it has all the makings of it. He’s got Elon Musk, who’s been rocking the market pretty much all year round. He has Dogecoin, which symbolizes the rise of coins even, which has been such a big part of this crypto history. And he also has the role of Tesla because we’ve seen these big companies come in and really impact the price of Bitcoin. So if you remember, it looks like decades.

But in early February, earlier this year in February, Elon Musk announced that he was buying $ 1.5 billion worth of Bitcoin and that Tesla could eventually accept it as a form of payment. And it sent Bitcoin to skyrocket to an all time high. And I think that kind of set the stage for a lot of what we saw in 2021, that these big companies were getting involved, big players like Musk moving the market through social media.

And again, in this specific case, we’ve also seen the rise of coins even, which is really a big part of the crypto phenomenon because now it’s not just Dogecoin. You also have Shiba Inu, which, according to data from CoinDesk, has, I think, grown by around 43 million percent since the start of the year. So that’s a big part of crypto history in 2021.

The story continues

ZACK GUZMAN: And Emily, I guess the other big story we’ve been following is this kind of regulation and what the regulators here, at least in the US, want to do about it. And, you know, obviously Elon Musk is talking about Dogecoin as possibly being a better form of payment than Bitcoin here. You still have some stable coins that could potentially be an even better form of payment, depending on how the regulators want to proceed. Of course, the Senate Banking Committee also began its hearing after the House had theirs on stablecoins and crypto. I mean, what’s the story maybe to watch out there if regulators want to crack down on stablecoins, how does that change the whole market in 2022?

EMILY PARKER: Yeah, like you said, there’s a hearing today on Stable Parts. And I think there are two important trends in this story. The first is that stablecoins are officially on the radar of lawmakers in Washington. We will definitely see more regulatory action towards stablecoins in the future. It seems certain. The other is that it’s also just one example of how crypto in general is now part of the debate in Washington.

And that’s a relatively new thing, at least at this level. We recently had a hearing with cryptocurrency exchange executives also testifying in Congress. We have seen the infrastructure bill partially blocked by a controversial crypto-tax provision. So having this relatively sophisticated cryptocurrency debate in Washington, again, I think it’s something relatively new and very important in terms of how the regulations are going to be framed.

AKIKO FUJITA: And Emily, I guess you could argue that in many ways this regulation that’s about to follow is going to inform the growth of the crypto space. But we are emerging from what has been a banner year. Are we going to see that kind of growth in 2022? I mean, there are two stories here. One is the story of adoption, but the other is really just the sheer growth we’ve seen in terms of value.

EMILY PARKER: You know the cryptocurrency markets are always a guessing game, but I would say we’re probably going to see the growth continue. Additionally, regulations are important for growth because what’s not good for the crypto markets is the lack of clarity or uncertainty. So, for example, in the United States, you will often hear people complaining that the American regulations are just not clear enough for the cryptocurrency industry. So obviously we don’t want over-regulation, but I think there is a general consensus that clear regulation and clear guidelines are likely to be good for the cryptocurrency industry in the United States. . And the United States is a very important player in this market.

AKIKO FUJITA: OK, and I know you’ll be watching this very closely. Emily Parker, always happy to have you. Thank you very much for joining us.

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