The price of Bitcoin has soared past $100,000 recently, signaling significant institutional shifts. Over the past years, the US cryptocurrency regulation standard has been evolving into an international norm. International bodies like the Bank for International Settlements and the Financial Stability Board have made strides in cryptocurrency development and cross-border regulation, reaching a consensus on associated financial stability and risks and establishing safeguards.
Asset tokenization via blockchain is anticipated to be a major trend. The BIS has proposed a blockchain-based financial internet model, which has gained traction among many countries and regions, set to impact the cryptocurrency market and global financial infrastructure.
The Bitcoin-led cryptocurrency market is becoming a crucial part of the global financial system, with its market value likely to swell as the overall market progresses. Currently, Bitcoin’s asset characteristics are strengthening, potentially rivaling digital gold. If the US president-elect designates Bitcoin as a national strategic reserve, it could supercharge its market value and elevate it to a global strategic asset.
As the market evolves and US regulatory policies potentially ease, Bitcoin-based financial derivatives will likely mushroom, fueling the cryptocurrency market’s growth. However, this financial innovation could also affect smaller economies, potentially weakening their financial regulatory functions and domestic currency status.
The cryptocurrency market’s expansion and US government support may also kindle a new wave of fintech innovation. Areas such as stablecoins, blockchain, financial internet, and financial data are on the cusp of transformation. This new wave of innovation is expected to be globally collaborative and cross-border, potentially overhauling current global financial system norms and infrastructure.
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