Why a Former Head of Barclays Is Upbeat About the Prospects of Cryptocurrency? Let’s discuss in details what happened and is it true or rumors…
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How crazy the cryptocurrency market was last year?
In an interview with the Financial Times, Bob Diamond, who used to be the head of Barclays, said that digital currencies will be very important in the financial markets. His plans to list Circle, a stablecoin, fell through because of how crazy the cryptocurrency market was last year.
He also says that a lot of good things will happen this year that will help the cryptocurrency market recover from the crashes of last year. This statement comes after Diamond was unable to list Circle, one of the biggest Stablecoins, at a 9 billion USD valuation. Low demand from investors was given as a reason.
Bob Diamond’s crypto plans that didn’t come to pass
Diamond was well-known in the cryptocurrency industry as a traditional investor. In 2021, his private equity firm, Atlas Merchant, put money into Circle and then set up a special vehicle to buy the business.
Failed plan put an end
The failed plan put an end to a bad year for the cryptocurrency market, during which prices fell and the failure of well-known companies like FTX showed how unpredictable and poorly regulated much of the market was.
“I don’t think as an industry we’re going to throw out the baby with the bathwater,” said Bob Diamond, co-founder and CEO of Atlas Merchant Capital. “I think there is a very important place for a digital currency.”
Shouldn’t use phrases such as “crypto winter”
He also said, “Crypto is such a broad word,” and he was upset that people were calling it “crypto winter.” “Everything is both good and bad. We need to work harder. There are definitely areas with a bright future, like the technology being made for stablecoins.
Catalyst for more effective and targeted regulation
“The optimist in me hopes that this will be a catalyst for more effective and targeted regulation and development of territories, like stablecoins and blockchain technology for onshore and permissive applications,” he said when talking about the collapse of FTX and other exchanges in 2022. He also said that Circle has been calling for this kind of regulation for a long time. He thinks that the crashes of 2022 will make people in charge pay attention.
“People are starting to understand the difference between US onshore and offshore,” he said, adding that Circle, which is regulated in the U.S., should benefit from this.
“I think there will be a chill for a while. Whether it’s an IPO or a spac, the process would be very hard right now,” he said, talking about how the market conditions are not right for upcoming listings.
Do stablecoins stay the same?
When asked about stablecoins, Diamond said, “A big question about stablecoins is whether or not they are stable.”
“I think Circle’s management of its reserves has shown that a dollar is a dollar in terms of their portfolio. This is shown by their openness in the disclosure, their strategic partnership with BlackRock to manage the reserves going forward, and their consistent repayment.”
Source: Google Trend