Do not imagine that a spectacular crash can dent the tech sector’s self-belief, says Elaine Moore (Opinion, July 4). She’s right.
That said, Web3 will only become a reality with the right regulation — and for that, we need banks on board. Moore argues that blockchain and cryptocurrencies enable us to send money online safely without going through banks. But acceptance, transaction and settlement will grow fastest when banks are fully engaged. Then we will see the industry step up and create more resilience in the markets.
Following the Terra/Luna crash, we have an opportunity to bring order and standardisation. Regulators around the world are pushing ahead. However, to increase trust, we need a global standard that everyone can adhere to.
The fact is most people trust their bank. You don’t put money in a bank that plays with fire. Regulation encourages this trust and that will lead to mass adoption of Web3. As a more coherent regulatory environment emerges, banks need to develop an approach to crypto that serves consumers. Stablecoins, when regulated effectively, create this bridge and are the future.
Chief Executive Officer, Banking Circle