The consultation of the G7 is now just behind us. It was expected that the leaders of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States would free up time to talk extensively about bitcoin and digital currencies. But the headlines suggest otherwise.
Cryptocurrencys such as bitcoin were discussed at an earlier G7 summit. It was then decided that each country is responsible for regulations.
Full of wonder
Earlier this week, Anthony Pompliano, CEO of Morgan Creek Digital Asset, briefly spoke with CNBC’s Joe Kernen about what he expected from bitcoin on the G7. The well-known Twitterer and bitcoin analyst expresses his admiration. In just 10 years, Bitcoin has turned from a marginal internet concept for nerds (not his words) into a serious topic for governments to discuss.
As we wrote earlier, US President Donald Trump, Finance Minister Steven Mnuchin and even Secretary of State Mike Pompeo have made official statements emphasizing their views on bitcoin and other cryptocurrencys.
Short term damage
Pompliano believes that future regulations are likely to focus on fiat onramps such as wallet providers, exchanges and brokers. He expects that these new regulations will cause a lot of damage in the short term. The regulations do something with the sentiment and this prevents people from investing in cryptocurrency.
View the segment here:
Necessary harm to grow
In the end, almost every analyst agrees that regulation is a necessary evil. Nobody likes the idea of government supervision, regulation and paying taxes, but to help the sector move forward, bitcoin must radiate legitimacy. And that requires regulation.
Pompliano remained bullish during the segment. Whatever regulation the G7 could come up with, “in the end this could be a net benefit for bitcoin over a long period.” Regulations make bitcoin more accessible to private and institutional investors.
After reading all the reports, it doesn’t seem like cryptocurrency was really discussed this time during the G7. Not bad, the Amazon is burning and there is also a trade war to solve. But despite the lack of attention for bitcoin, that doesn’t stop Pompliano from being positive. He pointed to the approval of Bakkt by the CFTC as proof that Bitcoin will continue to attract the interest of institutional investors.