Terry Duffy, the CEO at Chicago Mercantile Exchange (CME) in an
Terry Duffy, the CEO at Chicago Mercantile Exchange (CME) in an exclusive interview to the Business standard has reinforced that the prices of Bitcoin would only see upward momentum or bull run like 2017 if people can use it more efficiently than just trading.
Duffy explained that the crypto community who mostly claim to be in the game for the technology are only concerned about the pricing. Duffy says the flag bearers and stakeholders must come out of their concerns for immediate monetary gains and shift the focus on making the digital assets more usable in daily life.
He elaborated,
“Once you get the use of it, the price will take care of itself… But the argument has gone only to the price of say bitcoin or any other cryptocurrency. No one is talking about, ‘How do I use this asset?”
Duffy also said that he believes that stable coins are the best form of crypto at present because it is a mix of both, the decentralization of crypto space and backing of traditional fiat.
Regulators are Worried over the Supply-Demand Gap
Duffy believes there are certainly some viable use cases of cryptocurrencies in the real-world but says that the concern of regulators is genuine too. He explains that institutions like the Securities and Exchange Commission (SEC)’s concern are understandable given the limited supply of Bitcoin, which is around 21 million.
Regulators believe that the limited supply of the Bitcoin can create a Supply-demand gap which might cause unrest in the long run, and since governments, themselves constantly run on deficits.
Duffy further said that crypto can find a place in the system but not on the cost of fiat currencies. He believes countries like the United States would never drop the fiat for any crypto. He elaborated,
“Sounds good to me, because I want to be responsible and run everything on an even-for-even basis.”
Duffy said that the success of cryptocurrencies or the reason for its mass-adoption goes through regulators, thus the stakeholders must strategize their plans with regulations in their mind. There is no other way for cryptocurrencies to be widely used unless they work in hand with the governments.