In a recent interview on CNBC's Squawk Box, former Barclays CEO Bob Diamond advocated for the cryptocurrency industry to stop shying away from much-needed regulation.
He stressed the importance of regulatory clarity for realizing the potential benefits of digitalization and cryptocurrencies. Furthermore, Diamond commended mainstream financial institutions such as BlackRock for their increasing involvement in this sector.
The former Barclays boss also noted the importance of understanding the term "crypto" within the context of broader digital advancements. He pointed out the growth in the adoption of digital assets and blockchain technology by conventional financial institutions, highlighting the persistent regulatory ambiguity in the sector. This ambiguity remains a key hurdle and risk factor for industry participants and investors.
Diamond's call for more regulation resonates with the prevailing sentiment within the industry and among regulators. They believe that a lighthouse of clearer guidelines is essential to protect consumers and maintain the ship of the financial system on a steady course.
Godfrey BenjaminWhile talking about inflation, Diamond dismissed its alarm bells and expressed confidence in the Fed's ability to keep it in check.
He proposed that the current inflationary pressures are different from previous epochs and that the Fed's response strategy has been largely successful.
When it comes to recession fears, Diamond waved off ideas of a looming economic downturn. Instead, he speculated that the economy might navigate a prolonged period of sluggish growth.
Diamond further explained that the business and consumer sectors would need to recalibrate their expectations to a new normal of higher interest rates, a transition that could put brakes on economic growth.
Tomiwabold Olajide
Dan Burgin
U.Today Editorial Team
Vladislav Sopov