CME’s Terry Duffy — Bitcoin’s Fixed Supply Makes Regulation Difficult

Wilfred Michael 

Wilfred Michael

News reporter

26 March 2019,
12:36
CME’s Terry Duffy — Bitcoin’s Fixed Supply Makes Regulation Difficult

Terry Duffy, Chairman, and CEO of major U.S derivatives market, CME Group has outlined what is arguably a significant hurdle for regulators when it comes to Bitcoin.

In an interview with Business Insider earlier this week, Duffy claimed that the finite supply of Bitcoin limits the ability of governments to manage it in the same manner as traditional currencies.

In the case of Bitcoin, for instance, there will only ever be 21 million tokens, a phenomenon that is in stark contrast to the existing financial system where the government can print money on demand as a way to manipulate the economy.

Duffy explained how such a finite supply poses a challenge to governments as opposed to stablecoins which are routinely pegged to fiat. He said,

"The governments can't run unless they can run on a deficit. I am trying to figure out why they would say, 'Sounds good to me, because I want to be responsible and run everything on an even-for-even basis. I can't borrow against anything.'"

Although Duffy pinpointed that managing such a fixed supply system is a difficult gap to bridge for regulators, he remarked that (running a currency without a deficit) it is avoidable.

Moving forward, the CME Group Chair shared his thoughts on the reasons why crypto-based products such as Bitcoin ETFs and Futures Contracts are yet to get a green light from U.S regulators.

"I do believe that the regulators right now are a little careful about just rubber stamping anything as it relates to crypto," Duffy noted, before adding that that the regulators need to find a degree of comfort with an offering before giving its approval.

“I think it is hard to get comfortable with something so new like this,” Duffy concluded.

In a similar development, we reported last week, Timothy Massad, another U.S elite believes that the U.S already has what it takes to regulate the crypto industry.

 

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