CME Group CEO: The Government Needs to be More Involved in Crypto.
Terry Duffy, CEO of the CME Group that launched Bitcoin Futures trading in 2017, recently sat down with ‘Bloomberg Markets’ for an interview regarding “Volatility, Data Expansion, Institutional Demand, Bitcoin and Crypto”. Duffy expressed that until Governments genuinely start to accept cryptocurrencies, it will continue to be challenging for financial institutions to engage properly in the space.
“The key to the success of any currency, whether it’s fiat or crypto, is going to be associated with the government. So I think the government needs to be more involved.”
Duffy suggested this may be one possible explanation for the wider views held by institutions such as JPMorgan and Goldman Sachs who remain pessimistic or skeptical towards bitcoin. Despite this, however, these firms are warming to the potential of the underlying technology and are beginning to produce their own private offerings. One such product is JPMorgan’s JPMcoin, which they stress is not a cryptocurrency but believe will help them provide a better service to its users.
This pattern follows a report from the Crypto management Fund ‘Grayscale’, declaring that institutional money continues to enter the crypto ecosystem at an increasing rate as a ‘Majority of (Grayscale’s) investments (66%) has come from institutional investors’. Duffy also provided his take when asked if he believes that the bottom of this bear market cycle is in as well as if institutional demand was there for bitcoin and crypto:
“I’m not quite sure, i was a big believer that we needed to go forward and list bitcoin in some way, shape or form, but also understand that this is a brand new asset class that has come into the market place, so you need to be able to walk before you can run. We put a lot of controls that we don’t have on other products onto bitcoin and i think that’s important. I think the bottom line is that until governments really start to accept cryptocurrencies of someway, shape or form it’s going to be really hard for the major commercials to come in here and really get Gung Ho on bitcoin.”