Classic cryptocurrencies like bitcoin (BTC) are known for their high volatility. To deal with this problem, developers have introduced stablecoins. These are cryptocurrencies with the particularity of being backed by a more stable and stronger currency such as the dollar. A senior executive at Fidelity Investments recently said that stablecoins could act as a catalyst for bitcoin adoption.
Jurrien Timmer calls for regulation of stablecoins
According a tweet from Bitcoin Archive on August 16, the director of Global Macro said that “bitcoin adoption could be accelerated by favorable stablecoin regulation“. The top executive of Fidelity Investments made the statement during a recent interview on YouTube channel Crypto Banter. Jurrien Timmer specifically stated that dollar-backed stablecoins can help increase adoption rate bitcoin. To do this, it would be necessary to regulate these cryptocurrencies.
Timmer indicated that stablecoins would have to be deemed safe. There should also be no more headlines about them and their space should be legitimized. All this will lead investors to trust the Bitcoin (BTC) network more, which will accelerate its adoption. The director of Global Macro clarified: “As the space legitimizes and grows, I think more and more investors might start to get comfortable with the promise that this expanding adoption curve can actually to come true.“.
According to Jurrien Timmer, Head of Global Macro at Fidelity Investments, the crypto winter has had a big impact on the markets. Investors need to feel more secure before jumping into the crypto business again. To this end, consideration should be given to regulating stablecoins. This is how we can hope for greater adoption of bitcoin (BTC).
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