The global acceptance of crypto continues to grow. According to a recently published Chainalysis blog, at the end of the second quarter of 2021, the adoption scale has increased over 2300% since the third quarter of 2019 and over 881% last year. In the past year, regions such as North America, Western Europe and East Asia played a decisive role. In addition, at the time of going to press, the number of blockchain wallet users has seen a huge increase since its inception.
Meanwhile, “traditional” financial institutions like JP Morgan, Morgan Stanley, Wells Fargo and others have already integrated crypto services due to the increasing demand of their customers. For example, Wells Fargo, one of the oldest banks in the United States, has released a designated Bitcoin fund to select customers.
On the contrary, several representatives of the US Parliament are still saying otherwise. For example, consider that US Senator Elizabeth Warren viewed cryptocurrencies as “the new shadow bank,” according to a report in the New York Times. She said,
“Crypto is the new shadow bank. It offers many of the same services but without the consumer protection or financial stability that support the traditional system … It’s like spinning straw into gold. “
In financial terms, a “shadow bank” refers to a non-banking financial company that provides services outside the scope of normal banking regulation
Warren, a longtime crypto critic, discussed “[banning] Banks in the United States are reluctant to hold cash deposits to hedge stablecoins, which could effectively end the emerging market. In fact, in July, the Massachusetts Senator even called on Treasury Secretary Janet Yellen to “introduce stricter crypto rules and a coordinated and coherent regulatory strategy to mitigate the growing risks cryptocurrencies pose to the financial system.”