DCountries like China and El Salvador have already started to implement different regulatory options. Some jurisdictions, like India, have modified existing laws, others, like Liechtenstein, have offered tailor-made models.
Another approach, apparently favored by the European Union and the United Arab Emirates, proposes setting up entirely new regulators to deal with the industry globally. Ukraine, which is waging a fierce defense against the Russian invasion, claims to have pioneered a new form of financial support.
Since February 26, when Ukrainian officials began tweeting calls for cryptocurrency donations, the Ukrainian government said it had collected nearly $67 million of its $200 million goal. “Crypto plays an important role in defending Ukraine”wrote Alex Bornyakov, the country’s deputy minister for digital transformation, on the country’s donations website.
ATAs the EU considers further action against Russia, US and UK lawmakers have raised concerns that crypto transactions could become a backdoor to transfer money to and from Russia. In this sense, the President of the European Central Bank (ECB), Christine Lagarde, warned of the “threatens” What are the cryptocurrencies obtained in exchange for Rubles in an attempt to circumvent the sanctions of Western countries against Russia. Of all digital asset classes, “crypto-assets concern me the most in the Russian context”, the central banker told a Bank for International Settlements innovation forum. And to emphasize that cryptocurrencies escaping the traditional banking system are “certainly used as a means of circumventing the sanctions that have been decided by many countries around the world against Russia and specific actors”. Individuals or Russian companies “obviously try to convert their Rubles into crypto-assets”noted Lagarde.
Is it really effective?
“Russia’s Invasion of Ukraine Could Accelerate Central Banks’ Adoption of Digital Currencies”, according to BlackRock’s Larry Fink. The CEO of the $10 trillion fund manager called it one of the results “least discussed” of the war, which began a month ago, in a letter to shareholders. For the Bank of England (BoE), “the potential value of cryptoassets increased tenfold between early 2020 and November 2021, reaching $2.9 trillion at its highest”.
Today, there are 18,142 cryptocurrencies, 460 cryptoexchanges, and the market capitalization of cryptocurrencies is $1.7 trillion. Every 24 hours, $91 billion worth of crypto is traded, most of it being bitcoin or Ethereum. In early March, President Biden signed the long-awaited executive order on ensuring responsible development of digital assets. This executive order commits the White House to participate in cryptocurrency research and engages government departments to collaborate in creating a regulatory framework for digital assets. It also describes a “whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology”.
Globally, central banks and regulators already have their eyes on this growing trend. In Morocco, Bank Al-Maghrib (BAM), alongside other European Central Banks, is in talks with the International Monetary Fund (IMF) and the World Bank (WB) on establishing a regulatory framework governing cryptocurrencies . During the last press conference held at the end of the BAM Board meeting, Abdellatif Jouahri declared that“Given the absence of a legal framework governing cryptocurrencies at the national and international level, we cannot yet adopt cryptocurrencies”. Given the size of the industry and the impending regulatory push, isn’t it appropriate now for Morocco to pay more attention to what could be the currency of tomorrow?
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the war in Ukraine divides the world
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