Bitcoin had an unexpectedly strong reception among attendees at the World Economic forum in Davos, Switzerland.
On Friday, January 24, 2020, the World Economic Forum announced that it is assembling a consortium of public and private sector leaders to draw up guidelines for cryptocurrency government.
The announcement was vague in details, but it marked a shift in opinion of people generally associated with traditional banking institutions now willing to be associated with digital assets, and even promote them.
This development has some Bitcoin boosters very excited.
Industry insiders have voiced their annoyance about how governance standards for cryptocurrencies vary so much throughout political jurisdictions across the globe. What this consortium aims to do is to bring some semblance of order to this “fragmented regulatory system”, according to the World Economic Forum announcement.
After the announcement was made, Bitcoin’s price rose from $8,200 to $8,400. By early afternoon, Bitcoin was trading at $8,455 in New York.
Cryptocurrencies have always had strong outsider appeal because of how they are viewed as a strong rejection of fiat money and legacy political institutions
However, financial insiders believe that Bitcoin’s price depends on it being widely accepted, especially among the elites of legacy institutions.
Bill Miller, a renowned value investor who acquired Bitcoin before its price started taking off in 2017, declared that Bitcoin has been on a “march to respectability” that should continue to boost its price.
“This announcement is a further indication that the economic elites are no longer ignoring the innovation behind cryptocurrencies and blockchain technology,” said Mark Williams, a Boston University professor who does classes on fintech.
Traditionally, government leaders had viewed cryptocurrencies as a way for criminals and political dissidents to move money across the globe undetected. This recent announcement hinted at leaders viewing crypto in a slightly more positive light, because of how these currencies have supposedly high levels of financial inclusion. In other words, poor people that are relatively un-banked can use cryptos without having to pay high fees.