Bloomberg: Unfair regulatory environment will cause blockchain to disappear into obscurity

The Bloomberg News editorial board called for a light-touch regulatory environment for blockchain development, especially for public blockchains like Bitcoin.

In an editorial published yesterday, the committee, which is made up of news and feature editors, advocated for the use of so-called "blockchain-based environments" to allow companies to test financial products with a limited range of customers. The committee has joined a number of countries, including the UK, in pushing for the creation of such environments specifically for blockchain applications.

Comparing private and public blockchain projects, the Bloomberg editorial board noted that while public blockchain technologies have better development prospects, ‘the current regulatory environment puts them at a disadvantage’.

Bloomberg editorial stated:

“Blockchain can really change the world, reduce the severity of financial crises and reduce global trade frictions. But this technology may also disappear in obscurity in the narrow understanding of technological innovation. This technology deserves proper exploration. If regulators can give blockchain some room for development, it will be a great help to this technology.”

This sentiment appears to have gained the attention of global regulators and central banks, which are tasked with overseeing payment systems in their respective countries.

At an event in Washington earlier this month, representatives from 90 of the world’s central banks expressed an openness to the technology, both in terms of its impact on their financial landscape and their own institutions.

On the other hand, other aspects of the digital currency ecosystem, especially exchanges, continue to face calls for additional scrutiny. The trend of more closely regulating exchanges is particularly evident in Europe and Asia. The Philippine central bank has already stated this week that they will strengthen supervision.