Financial technological innovation is constantly evolving our relationship with money. Cryptocurrency’s rapid prevalence over recent years in the global financial system is growing rapidly. The pandemic has turbocharged interest and investment.
In 2022, the total market capitalization of the whole cryptocurrency market stood at $2 trillion, double the value a year earlier. In September 2021, El Salvador became the first country in the world to accept bitcoin as official legal tender alongside the dollar. Assets stored in decentralized finance (DeFi’s) applications rose from under $1bn at the start of 2020 to more than $200bn in early 2022.
Do such events represent a turning point in global digital finance? Plenty of hurdles still remain. China has enforced a strong crackdown on cryptocurrencies, banning them from the world’s second largest economy.
Regulators are scrambling to create responsible frameworks and rules, including the US Securities and Exchange Commission, to accommodate digital currency. Many remain concerned about the security surrounding crypto finance. There is also the potential for an exponential increase in encrypted illicit financial transactions.
At this exciting yet unclear time for digitized, global finance, the panel of experts will discuss:
Is global banking on the verge of its biggest revolution in a generation or are such discussions shrouded in hype?
How will regulators adjust to tackle financial illegalities conducted with digital enablers?
What are some of the serious regulatory issues that are, and must, be considered by the authorities?
Has the pandemic changed our preconceptions of digital finance?
A networking reception will be held after this event.
As with all Chatham House member events, questions from members drive the conversation.