Why Is Global Digital Finance Pivotal for Cryptocurrency Best Practices?

By Lori Wade

Does this sound familiar? The cryptocurrency market will one day grow into a trillion dollar valuation. Well, if you consider some of the arguments and theories by thought leaders from around the world, there is an apparent reason to believe that the cryptocurrency industry is heading for a multi-trillion dollar market capitalization. Imagine what it would be like to see your Bitcoin investments grow several times over.

Well, this article doesn’t discuss financial advice but lays out the evidence in favor of Global Digital Finance role in the future of the cryptocurrency market.

What is Global Digital Finance?

Global Digital Finance (GDF) is a non-profit initiative. It aims to promote the global adoption of cryptocurrency and digital finance technologies best practices. Since its launch at the start of 2018, GDF has been very pivotal in finding solutions to some of the industry’s most significant problems.

Have you ever noticed how most potential investors cite the lack of regulation as the reason for not investing in crypto-assets? Well, the Global Digital Finance initiative agrees. According to the organization, regulation of crypto-assets could be a crucial turning point for the industry. The cryptocurrency ecosystem lacks the necessary regulation and codes of conduct that is needed to protect investors and their money from loss as a result of fraud. Think about this for a moment. Can Global Digital Finance fill in the missing gap to increase the credibility of crypto-assets? Check this out.

Global Digital Finance - A global cryptocurrency code of conduct

Haven’t you heard or read enough material that makes a case for how Blockchain and cryptocurrencies will disrupt the world? Now that well understand that let’s also consider the growing use of the internet in conducting business and payment transactions. Both these technologies can change how people do business. It’s an all too familiar story. But wait, there’s more.

Blockchain technology is disrupting industries to create new business opportunities. And for many, these are signs that cryptocurrencies need to grow in maturity to sustain the level of growth of Blockchain technology across several industries. Get this; the GDF organization promotes the adoption of best practices to allow the cryptocurrency market to become more transparent and efficient. It is for the mutual benefit of all market participants. Deep down, you know that this is true.

Think about it. An industry body made up of policymakers, regulators, banking institutions, academics, and giant industry players. Can this be true? Yes, it’s true! All experts come together to create a global standard for crypto-market participants to follow.

Good news; GDF released the first industry Code of Conduct, last year. It is the first step to global industrial standards. The member even summarized the code into five parts that discuss the overarching principles of crypto-assets. Namely; Token sales, token platforms, funds, fund managers, and rating websites.

Cryptocurrency regulations could generate growth

Don’t you think that cryptocurrency governance policies could lead to a revolution within the revolution? Moreover, this will help policy makers, participants, and regulators increase confidence in the market. Fact: There is a need for an authority that can regulate the market.

Despite the benefits of investing in digital assets, the ugly truth is that the crypto-world is not safe. There has been more than $1 billion in losses as a result of cryptocurrency hacks in 2018 alone. Then there’s the debate on whether crypto-assets can be defined as either securities or utilities. Why is this debate important? Because this classification could determine how different countries regulate crypto-assets depending on their local laws.

Unification under a single code means global unity in digital assets. The regulation will provide a stable environment for investors, which will reduce volatility to increase stability and overall growth of the market.

Cryptocurrency as a future store of value?

So, are crypto-assets digital Gold? No doubt about it. But, with the continued absence of a regulatory framework, cryptocurrency could lose this digital gold status. There's this well-funded argument that the first potential market, which cryptocurrencies can control a significant share is the Gold, Silver, and other valuable metals market. Do you agree? Well, whatever you take on the argument is, you have to admit that the inflation Gold is not the ideal form of an inflation-hedging asset due to the approximately two percent annual inflation.

As such, it’s not strange to think that crypto-assets can slowly take the monetary value of Gold, which is currently at approximately seven trillion dollars. However, without regulation to foster investor confidence in crypto-asset, this argument will not hold in the future. Look: Regulation could change the cryptocurrency industry for mutual good.

In conclusion

The Global Digital Finance initiative released its code of conduct in an attempt to ignite the conversation of cryptocurrency best practices and code of conduct. Mainly, this debate could find viable solutions to the problems that keep potential market participants of all sizes from the market. Indeed, GDF has the potential to create a valid model for cryptocurrency best practices, which could lead to a fair and transparent market. Don’t you think that the time is right for crypto-assets regulation?

And see: Beginner's Guide to Cryptocurrency - CouponChief.com