Over recent months, several countries have made moves to bring cryptocurrencies into the fold of their regulatory frameworks, citing the need to protect consumers from volatility and losses.
Some have touted this warmer attitude towards digital assets as the catalyst needed to propel cryptocurrencies into the next bull run, yet concerns remain as tougher regulation could stifle innovation in the sector.
So far, cryptocurrency markets appear to be on the fence regarding this shift, and it remains to be seen whether greater regulatory acceptance will have a positive impact on digital asset prices.
Should a more favourable regulatory landscape unlock additional sources of liquidity, some tokens will likely soar in value.
However, while Bitcoin and Ether may benefit, it is unlikely that these developments will significantly boost the wider crypto market.
Watch: What happened to the Bitcoin price?
Stifling innovation
While this global regulatory shift does provide some much-needed clarity to institutions, it may be detrimental to the decentralised crypto community and its retail investors.
Across the globe, the rules of the game appear to favour larger, more established institutions, including large centralised exchanges.
Meanwhile, decentralised exchanges and smaller, more innovative projects, are conspicuous by their absence in this developing landscape.
Regulatory proposals often include strict capital requirements or compliance with anti-money laundering rules, making it difficult for decentralised projects to gain the necessary licences.
In fact, it appears regulators are still struggling to grasp the very concept of decentralisation, leading to confusion as to the products and services that fall under the scope of global legislation.
For example, the recently passed Markets in Crypto Assets regulation in the EU fails to provide a clear and consistent regulatory framework for decentralised finance (DeFi).
Yet it is these smaller, more innovative blockchain projects that tend to drive growth, and leaving them out of the picture threatens the future of the entire crypto ecosystem.
Avoiding another 2008
It seems there is an attempt to shoehorn cryptocurrencies into the same box with banks and other traditional financial institutions. Yet the events of 2022 revealed the error of this approach.
Far from protecting consumers, centralisation simply creates fertile ground for alleged fraudsters such as FTX’s Sam Bankman-Fried and Celsius Network's Alex Mashinski to conduct their nefarious operations.
In this set-up, the retail investor always loses out. In the best-case scenario, they invest their hard-earned money with so-called “trusted” financial institutions and pay extortionate management fees. In the worst case, they lose all their savings to a Ponzi scheme.
This happened in 2008, when millions lost their savings as a result of the reckless behaviour of banks and investment managers.
It happened again in crypto last year. And if we don’t make drastic changes to the system, it will keep happening. How could it not? Doing the same thing over and over again and expecting a different result is the very definition of madness.
The need for greater decentralisation
Yet there is another way. Instead of simply perpetuating the interests of centralised companies, global legislators could also encourage the adoption of DeFi.
DeFi has a very promising infrastructure that allows for full automation, greater efficiency and lower fees for users.
If regulators were to embrace DeFi, this could usher in an era of financial services that are open to all, without prohibitive fees and the cult of personality that plagues today’s financial landscape.
Cryptocurrencies – in pictures
It would create a more diverse playing field, providing consumers with true choice by removing the very concept of a monopoly. And, crucially, it would empower retail investors to take control of their own financial futures.
Around the globe, we appear to be losing sight of the reasons as to why cryptocurrency was created in the first place.
Bitcoin was designed to fight the greed and corruption that caused the 2008 crash. Cryptocurrency is an equitable alternative to fiat money and it must go back to its decentralised roots to truly break the vicious cycle of market booms and busts.
Stefan Rust is chief executive of independent inflation data aggregator Truflation and former chief executive of bitcoin.com
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
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UAE currency: the story behind the money in your pockets
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
UAE currency: the story behind the money in your pockets
The%20specs
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BUNDESLIGA FIXTURES
Saturday, May 16 (kick-offs UAE time)
Borussia Dortmund v Schalke (4.30pm)
RB Leipzig v Freiburg (4.30pm)
Hoffenheim v Hertha Berlin (4.30pm)
Fortuna Dusseldorf v Paderborn (4.30pm)
Augsburg v Wolfsburg (4.30pm)
Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)
Sunday, May 17
Cologne v Mainz (4.30pm),
Union Berlin v Bayern Munich (7pm)
Monday, May 18
Werder Bremen v Bayer Leverkusen (9.30pm)
The five pillars of Islam
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
Price: From Dh796,600
On sale: now
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Killing of Qassem Suleimani
Company Profile
Company name: Yeepeey
Started: Soft launch in November, 2020
Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani
Based: Dubai
Industry: E-grocery
Initial investment: $150,000
Future plan: Raise $1.5m and enter Saudi Arabia next year
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
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Porsche Macan T: The Specs
Engine: 2.0-litre 4-cyl turbo
Power: 265hp from 5,000-6,500rpm
Torque: 400Nm from 1,800-4,500rpm
Transmission: 7-speed dual-clutch auto
Speed: 0-100kph in 6.2sec
Top speed: 232kph
Fuel consumption: 10.7L/100km
On sale: May or June
Price: From Dh259,900
The specs
Engine: 2.0-litre 4-cylinder turbo
Power: 240hp at 5,500rpm
Torque: 390Nm at 3,000rpm
Transmission: eight-speed auto
Price: from Dh122,745
On sale: now
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
US households add $601bn of debt in 2019
American households borrowed another $601 billion (Dh2.2bn) in 2019, the largest yearly gain since 2007, just before the global financial crisis, according to February data from the New York Federal Reserve Bank.
Fuelled by rising mortgage debt as homebuyers continued to take advantage of low interest rates, the increase last year brought total household debt to a record high, surpassing the previous peak reached in 2008 just before the market crash, according to the report.
Following the 22nd straight quarter of growth, American household debt swelled to $14.15 trillion by the end of 2019, the New York Fed said in its quarterly report.
In the final three months of the year, new home loans jumped to their highest volume since the fourth quarter of 2005, while credit cards and auto loans also added to the increase.
The bad debt load is taking its toll on some households, and the New York Fed warned that more and more credit card borrowers — particularly young people — were falling behind on their payments.
"Younger borrowers, who are disproportionately likely to have credit cards and student loans as their primary form of debt, struggle more than others with on-time repayment," New York Fed researchers said.
MATCH INFO
Manchester United 6 (McTominay 2', 3'; Fernandes 20', 70' pen; Lindelof 37'; James 65')
Leeds United 2 (Cooper 41'; Dallas 73')
Man of the match: Scott McTominay (Manchester United)
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
Trippier bio
Date of birth September 19, 1990
Place of birth Bury, United Kingdom
Age 26
Height 1.74 metres
Nationality England
Position Right-back
Foot Right
THE%20SPECS
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Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
