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- Professor Avgouleas is a senior research fellow at the crypto technology business IOHK and the chairman of the University of Edinburgh’s International Banking Law and Finance department
- Professor Avgouleas believes that government attempts to regulate the crypto sector will increase the credibility of cryptocurrencies and make it more difficult for criminals to exploit them
- According to Avgouleas, central banks researching state-backed digital currencies, also known as central bank digital currencies (CBDCs), should legitimize cryptocurrencies in the eyes of consumers
In a recent interview with the Insider, Professor Emilios Avgouleas discussed how stringent rules benefit the crypto sector. Professor Avgouleas is the chairman of the University of Edinburgh’s International Banking Law and Finance department, as well as a senior research fellow at the crypto technology firm IOHK. He is a leading worldwide authority on financial reform, fintech policy and regulation, banking theory and regulation, capital markets regulation, law and finance, and global economic governance, according to the institution. Government initiatives to regulate the crypto sector, according to Professor Avgouleas, should make cryptocurrencies more credible and difficult for criminals to exploit. While he admits that regulation may be a negative thing in the short run since market prices will go down, he argues that at the same time regulation will filter out unholy conduct and will make these alternative ways of payment even more acceptable for the average consumer. In the long run, it will make the transition from paper money to digital payment methods permanent.
Cryptocurrencies, which soared in the early months of 2021 before plummeting in May and June, are attracting the attention of regulators all around the world.
The Chinese government has already started cracking down on bitcoin “mining” and payments. In the United States, the new SEC head, Gary Gensler, has stated several times that he believes there are loopholes in the crypto regulations.
The world’s top banking regulator has stated that financial institutions holding bitcoin or cryptocurrency should be subject to strict regulations to ensure that their exposure does not create financial instability.
Central banks studying the issue of state-backed digital currencies, known as central bank digital currencies (CBDCs), should legitimate cryptocurrencies in the eyes of consumers, according to Avgouleas. Cryptocurrency regulation is becoming more serious in a growing number of nations. The Chinese government has been tightening down on bitcoin mining and payments. Gary Gensler, the head of the Securities and Exchange Commission (SEC), has called for more monitoring of cryptocurrency exchanges as well as legislation to safeguard consumers in the United States. Bitcoin and cryptocurrencies, on the other hand, are not on the SEC’s regulatory agenda this year.
Professor Avgouleas is equally optimistic about the future of cryptocurrencies, saying that because they are private, safe, and international, they might become extensively utilized throughout the world. In short, as countries impose regulatory measures on crypto, it will reduce the several frauds happening in and across the country and at the same time will accelerate the growth of the industry worldwide.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
