Just as the news of a UK Cryptocurrency Task Force comes out, the revolutionary cryptocurrency Bitcoin hit the $9000 mark again on Tuesday. A slow but stable rise in Bitcoin is likely to lure more investors. Since the fall of Bitcoin from its former glory, many economic pundits predicted that the end has come. But there was always hope as many other experts were of the view that the fall was temporary. It took several weeks for the Bitcoin to pull itself together, and now it’s going up again.
However, the biggest news of the week is the announcement of a Cryptocurrency Task Force as part of a financial technology strategy named UK-Australia Fintech Bridge, by the UK regulators. The taskforce will include the Central Bank, the Bank of England, and the Financial Conduct Authority, according to the law makers.
Announcing the news the U.K. Finance Minister Philip Hammond said, “I am committed to helping the sector grow and flourish, and our ambitious Sector Strategy sets out how we will ensure the UK remains at the cutting edge of the digital revolution. As part of that, a new task force will help the UK to manage the risks around Cryptoassets, as well as harnessing the potential benefits of the underlying technology.”
This interest in financial technology comes as no surprise as the “first three quarters of this year the sector received a record £2.1 billion investment” according to the same news report. But for investors this is good news too, that at last some developed countries are taking some serious steps to regulate the cryptocurrencies and related technologies. Finance Minister Philip Hammond mentions that their aim is to “bring together our regulators, policy makers, and private sectors to build an improved fintech ecosystem to support the growth of our fintech markets.”
This news comes at a time when cryptocurrencies including Bitcoin and Ethereum have started to bounce back and lure new investors according to experts. Cointelegraph believes that “The plunge in cryptocurrencies from their December highs had scared off new would-be cryptocurrency investors. Once the tide turns, we may see fresh money trickle back into the markets.”
Will Other Countries Follow Suit?
Meanwhile there are reports that Canada is preparing to regulate cryptocurrencies soon. Motherboards reports that in a hearing last Monday held by FINA, the parliamentary committee that oversees finance, the need for regulating cryptocurrency was strongly emphasized by Jonathan Hamel, a cryptocurrency expert. He believes that “At some point, we have to accept that it’s part of the financial landscape and move on.” This would be welcomed by every investor who has invested in cryptocurrency.
When we take a closer look at the behaviour of governments towards cryptocurrency we can see a favourable change over time. Reuters reported on Wednesday that the finance ministers of the G20 countries “agreed to keep a watchful eye on cryptocurrencies” in order to “open the door to regulating the booming industry at a later stage.” South China Morning Report published a detailed article about the proceedings at the summit on Wednesday in which we find that many of the major economies have been seriously thinking about cryptocurrency despite occasional setbacks. The good news is that cryptocurrency is becoming a major part of the world economy which the major economic powers can no longer ignore.