Ust-Crash will not stop the industry, says Morgan Stanley Exec

Ust-Crash will not stop the industry, says Morgan Stanley Exec

Financial service experts are confident that the digital asset industry will quickly recover this month after the collapse of Terrausd, they said during a panel discussion at the Permission Less conference in Palm Beach.

"I don't think we will miss a blow here," replied Amy Oldenburg, Head of Emerging Markets Equity at Morgan Stanley Investment Management, when asked how the situation could affect the introduction of digital assets.

algorithmic stable coins are particularly complex, and the crash of VAT has probably caused institutional actors to take a closer look at the technology behind the tokens, said Jessica Raybeck, head of institutional relationship management at Blockfi.

The StableCoin industry will certainly be examined more closely, added Oldenburg, but innovators would see this as an opportunity. Appropriate regulation will help to advance projects and get more users on board.

"There will be a point where such things can no longer be built and broken," said Chris Aruliah, Chief Product Officer at the BCB Group.

The supervisory authorities have made their concern about the growing stable coin sector long before the events of the past week, said Aruilah. In the President's working group to the StableCoin of the financial markets test report were highlighted with the markets associated with the markets: The risk of Depegging disposal, the risk of infection for the wider market and the risks for the payment system.

The ferra melt - as the supervisory authorities pointed out - has proven that these risks are no longer hypothetical. However, it will be a challenge to find a specific policy, said Raybeck.

"If we say that the reserves should be more transparent, that's not a bad thing," said Raybeck. "But if the regulations make it so difficult [to prevent operates in the space] and innovation, that is a real concern."

The regulatory authorities not only have stable coins in mind, added Oldenburg. The entire cryptocurrency industry can count on a kind of policy in the near future, but different countries and supervisory authorities pursue different approaches, and the type of industry adds an additional level of complexity.

"We see the convergence of technology sector and finance here," said Oldenburg. "Historically, the technology does not have as many regulations - that's the financial sector who does - that makes it very complicated."

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The post-turz crash will not stop the industry, says Morgan Stanley Exec, is not a financial advice.