Despite a significant drop in the cryptocurrency market this year, institutional investors believe that digital currency is here to stay. Some leaders in the traditional financial sector also believe that adequate legislation will stimulate the development and growth of this sector.
The situation on the market in 2018 scared some investors, however, the leaders of the traditional financial institutions continue to believe in the bright future of cryptocurrencies. According to a recent report published by Forbes, the majority of respondents believe that cryptocurrency will maintain and strengthen its position and play a role in the development of the financial sector in the future.
At the core of the report is based on data of a study conducted by Greenwich Associates, a global leader in the field of Analytics service quality, and consulting services. September 12, the company released a report titled “the Institutionalization of cryptocurrencies”, which discusses the process of seeking major investors in the cryptocurrency sector.
According to the report, 72% of institutional investors believe that cryptocurrencies will be long. Experts interviewed 12 executives of financial institutions working in Asia, North America and Europe.
Richard Johnson, Vice-President of the division of Greenwich Associates, engaged in the study of market structure and technology, said about the survey participants:
In their opinion, cryptocurrencies are not going anywhere and will become the norm, having received a wide circulation.
The positive assessment given by the heads of financial institutions, in common with the latest forecasts and data research.
For example, the head of Coinbase Brian Armstrong believes that the spread of cryptocurrencies will accelerate over the next five years, and the number of their users may reach a billion. Experts Qriously came to a similar conclusion, based on data about attitudes towards cryptocurrencies from the students.
Such belief in the prospects of cryptocurrency shows that investors are mostly optimistic, despite the fact that since the beginning of the year, the market lost approximately 70% of its capitalization. However, the optimism does not extend to all cryptocurrency. The survey showed that 32% of respondents believe the collapse of many digital assets, while others, in their opinion, not just “survive” but to thrive.
This prediction is unlikely to surprise those some time watching the cryptocurrency sector. Many believe that now on the market are too many tokens and the collapse of some of them is inevitable. Although exact figures are unavailable, in June, Fortune wrote that about thousands of coins already ordered to live long.
Meanwhile, 38% of executives surveyed say that incentive for the development of the cryptocurrency sector will be the future regulatory framework. Now we see how the authorities in different countries before you install any laws that affect the sector, trying to weigh the pros and cons.
For example, the Reserve Bank of India has set up an expert group designed to deal with settlement issues of emerging technology, cryptocurrency, and blockchain technology and artificial intelligence.
On the other hand, the Finance Ministers of the member countries of the European Union say they do not intend to hurry with the creation of a unified legislation in this area, and prefer to obtain additional analytical data. All this suggests that governments are trying to develop the optimal approach to the regulation of the sector to find a middle ground between the protection of investors and the freedom of the cryptocurrency market.
Source
