The editorial board for Bloomberg News has called for a permissive regulatory environment for blockchain development, particularly in the area of public versions of the technology such as bitcoin.
In an editorial published yesterday, the board advocated for the use of so-called regulatory sandboxes, or rule-making frameworks that allow companies to test financial products within a limited scope and customer range. Comprised of a team of news and features editors, the board joins a number of countries, including the UK, that have pushed for creating such environments specifically for blockchain applications.
Comparing private and public blockchain projects, the Bloomberg editorial board posits that while public versions of the technology carry the most promise, "current financial regulations put them at a disadvantage".
The article goes on to state:
"The blockchain really could change the world, making financial crises much less damaging and reducing frictions in global commerce. It could also fade into the relative obscurity of narrowly conceived technical innovation. The technology deserves to be properly explored. Regulators can make the difference by giving it some space."
It’s a sentiment that appears to have gained traction among the world’s regulatory bodies and the central banks that oversee their respective national payment systems.
At an event in Washington, DC earlier this month, representatives from roughly 90 central banks reportedly displayed openness about the technology, both in terms of its impact on the financial landscape as well as their own institutions.
On the other hand, some parts of the digital currency ecosystem, particularly exchanges, continue to face calls for additional scrutiny. The drive to regulate exchanges more closely has been notably seen in Europe and Asia, with Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, stating it would pursue such action this week.
Image Credit: Gil C / Shutterstock.com