Commodity Futures Trading Commission (CFTC) Chairman Dr. Heath P. Tarbert predicts the increase in Bitcoin futures trading and says he wants to see the US at the forefront of blockchain technology innovations.
During the LA Blockchain Summit held online, Tarbert explains that BTC will become more prominent in the futures market as real-world use of cryptocurrencies and digital assets increases.
“I expect the volumes to increase in the coming years. Our derivatives markets serve two purposes. First, it allows for hedging and then creates an opportunity for people to rely on derivative prices. There is currently a question as to who will buy Ether or Bitcoin contracts for hedging purposes. The only people we see in these markets right now are speculators, so there is actually no underlying risk…
This could change to the extent that we are beginning to see Bitcoin, Ether, and other digital currencies more often. I think this will be the key, and it will also be the starting point for digital assets and cryptocurrencies to be used by the real economy. There will be people saying, “I need to go to the futures market to avoid risk.”
As for whether central bank digital currencies (CBDCs) will become a worldwide standard; The CFTC chief says his colleagues in the Federal Reserve could provide better information on the matter. However, Tarbert emphasizes that the United States must play a leading role in shaping the blockchain space before other countries can dominate the space.
“I want to see the United States lead in blockchain technology. For me, this is not something the government should be directly involved in, but that could have benefits as well. But I really want to see that the United States continues to support innovation in this area, because I see other countries coming in and starting to lead already, and I think it’s really important that a democracy like ours continues to be at the forefront in this area. We have to do this for the future of the global financial system. ”