Terry Duffy, the chairman and CEO of CME Group, has a few words about cryptocurrency! Crypto approval will require financial regulatory approval – and Duffy doesn’t believe that’ll happen quite as easily as people hope. Bitcoin will need this regulatory green light before digital assets continue to progress.
The Chicago Mercantile Exchange Group CEO believes that that approval will be difficult – Bitcoin and other cryptocurrencies will not allow for deficit spending – therefore, will be useless for governments. Duffy also thinks that a lot of the narrative in the crypto space is driven by speculation, not adoption and real use cases.
This is all despite the CME offering one of the most high-profile crypto trading products currently on the market in the form of its Bitcoin futures contracts. Terry Duffy gave his thoughts in an interview with Business Insider earlier this month at FIA’s International Futures Industry Conference in Florida.
While Duffy is pessimistic about cryptocurrencies, Duffy is more optimistic about fiat-backed digital assets, such as the project being launched by JP Morgan and “stable-coin” projects. After all, 2018 was the year of Stablecoins, right? According to Duffy, this will allow users to reap the benefits of using cryptocurrency with none of the “supposed” downsides.
The CME Group CEO believes that regulators will stand opposed to Bitcoin and other cryptos with non-government-correlated monetary policies with those with monetary policies that they are more familiar with, such as deficit spending capabilities.
This means that the future is just a more efficient version of the current status quo – not a future driven by Bitcoin nor a societal revolution.
Duffy also stated that he felt that the focus on cryptocurrencies was the price – not the real use case. On top of that, government enthusiasm for the technology for its own use case is lacking – governments cannot run unless they run a deficit. The easiest way to gain acceptance from regulators is to forward fiat-backed digital assets – things that regulators will be able to recognize, follow, and understand. Most importantly, they’d feel comfortable with the technology.
Because of the above, Duffy, the chairman and CEO of CME Group, believes that Bitcoin and other decentralized cryptocurrencies, will fail.
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