Former Barclays CEO, Bob Diamond, recently spoke out on CNBC’s Squawk Box, encouraging the cryptocurrency industry to embrace regulation and calling for clearer guidelines to harness the potential of digitalization
In a recent interview on CNBC’s Squawk Box, former Barclays CEO Bob Diamond advocated for the cryptocurrency industry to stop shying away from much-needed regulation.
He stressed the importance of regulatory clarity for realizing the potential benefits of digitalization and cryptocurrencies. Furthermore, Diamond commended mainstream financial institutions such as BlackRock for their increasing involvement in this sector.
The former Barclays boss also noted the importance of understanding the term “crypto” within the context of broader digital advancements. He pointed out the growth in the adoption of digital assets and blockchain technology by conventional financial institutions, highlighting the persistent regulatory ambiguity in the sector. This ambiguity remains a key hurdle and risk factor for industry participants and investors.
Diamond’s call for more regulation resonates with the prevailing sentiment within the industry and among regulators. They believe that a lighthouse of clearer guidelines is essential to protect consumers and maintain the ship of the financial system on a steady course.
On the broader financial spectrum, Diamond gave a thumbs-up to the Federal Reserve’s handling of interest rates and inflation. Despite the heated debate over whether the Fed has been slow off the mark in response to recent economic indicators, Diamond suggested that the central bank has made noteworthy headway.
While talking about inflation, Diamond dismissed its alarm bells and expressed confidence in the Fed’s ability to keep it in check.
He proposed that the current inflationary pressures are different from previous epochs and that the Fed’s response strategy has been largely successful.
When it comes to recess fears, Diamond waved off ideas of a looming economic downturn. Instead, he speculated that the economy might navigate a prolonged period of sluggish growth.
Diamond further explained that the business and consumer sectors would need to recalibrate their expectations to a new normal of higher interest rates, a transition that could put brakes on economic growth.
Source: https://u.today/former-barclays-ceo-to-crypto-play-by-the-rules