Bitcoin reflects a fast changing global financial system landscape

The price of Bitcoin has exceeded $100,000 recently. Several institutional changes behind this are worth noting.

In the past few years, the US standard for cryptocurrency regulation has gradually become an international standard. International organizations, mainly the Bank for International Settlements and the Financial Stability Board, have done a lot of work in the development and cross-border regulation of cryptocurrencies, reached a consensus on the financial stability and financial risks brought by cryptocurrencies, and established risk prevention and control mechanisms.

In the future, asset tokenization based on blockchain technology is expected to become an important trend. The BIS has currently proposed a financial internet model based on blockchain technology, which has been recognized by many countries and regions. The development of the financial internet model will have an important impact on the cryptocurrency market and the global financial infrastructure.

The cryptocurrency market represented by Bitcoin will become an important part of the global financial system, and Bitcoin's market value will continue to expand with the development of the entire market. From the current perspective, Bitcoin's asset attributes will become stronger, and its status is expected to be comparable to digital gold. If the US president-elect clarifies the national strategic reserve status of Bitcoin, it will further promote the rise of Bitcoin's market value and push it to become a global strategic asset.

It is foreseeable that with the continuous development of the market and the gradual relaxation of US regulatory policies, financial derivatives with Bitcoin and other cryptocurrencies as underlying assets will continue to emerge, promoting the continuous prosperity and development of the cryptocurrency market.

At the same time, relevant financial product innovation will also have an impact on different economies, especially small economies. The function of their national financial regulatory departments, and their domestic legal currency status are likely to be weakened in the process.

The development of the cryptocurrency market and the support of the US government may trigger a new wave of financial technology innovation as well. Financial technology innovation in areas such as stablecoins, blockchain, financial internet and financial data will be ready to go then. Moreover, the new round of financial technology innovation will take the form of global cross-border integrated collaboration, which may bring major changes to the current global financial system rules and financial infrastructure.