Crypto and Fintech Regulation Challenges

The design of cryptocurrencies challenges the existing banking system and traditional financial system. Cryptocurrencies built on the blockchain works as on a decentralized scheme disrupting the existence hierarchical system. Central banks are concerned by their development, in particular stablecoins, since the proposal of the Diem (Libra) project affects their monopoly power over money creation. There is a strong debate over the nature of cryptocurrencies and their ability to compete with official currencies.

Cryptocurrencies – the Bitcoin in particular – were born as an alternative to the existing system judged corrupted and biased by human action. 2021 is a major turning point for cryptocurrencies, decentralized finance and Fintech as their market capitalization soared since January.

Regulators have accelerated their discussion over the regulatory design to be implemented meanwhile the major central banks are seriously working on the development of their own CBDC with China ahead of them. After an overview of the Fintech and cryptocurrencies landscape, the course examines the challenges arising from Crypto and Fintech Regulation, innovations and how financial regulators intend to address their regulatory response.