Classic cryptocurrencies like bitcoin (BTC) are known for their high volatility. To deal with this problem, the developers have introduced stablecoins. These are cryptocurrencies that have the distinction of being backed by a more stable and stronger currency such as the dollar. A senior executive at Fidelity Investments recently said that stablecoins could act as a catalyst for bitcoin adoption.
Jurrien Timmer calls for regulation of stablecoins
According to tweet from the Bitcoin Archive on August 16, the director of Global Macro said “the adoption of bitcoin could be accelerated by the favorable regulation of stablecoin“. The chief executive of Fidelity Investments made the statement during a recent interview on YouTube channel Crypto Banter. Jurrien Timmer specifically mentioned that dollar backed stables can help increase the adoption rate bitcoin. To do this, it would be necessary to regulate these cryptocurrencies.
Timmer pointed out that stable coins must be considered safe. They should also not make more headlines and their space should be legitimized. All this will result in investors trusting more in the Bitcoin (BTC) network, which will accelerate its adoption. The director of Global Macro clarified: “As the space legitimizes and expands, I think more and more investors may become comfortable with the promise that this increased adoption curve can materialize.“.
According to Jurrien Timmer, Global Head of Macro at Fidelity Investments, the crypto winter had a big impact on the markets. Investors need to feel safer before jumping into the crypto business again. For this purpose, consideration should be given to regulating stablecoins. This is how we can expect greater acceptance of bitcoin (BTC).
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