The cryptocurrency community is headed to clash with government regulators and centralized banking systems, the consequences of which could significantly impact digital currency models based on decentralized finance and peer-to-peer trading around the world. there is.
The following clash had such a great impact on the minds of those present Bitcoin Amsterdam this week, Billed Event organizer Bitcoin Magazine has rated it as “Europe’s largest Bitcoin conference.” The Dutch setting offered a bit of irony.The Bank of Amsterdam was founded in 1609. The world’s first true central bankand the Siboth A central bank meeting was being held simultaneously at another venue in town.
“Are they talking about which nations they want out of the financial system?” BTC Inc. CEO David Bailey It was asked in the opening remarks. “I can promise you that’s not what we’re talking about here. As we say with Bitcoin, fix money and fix the world.”
Central Banks Pursue Digital Options
The problem facing Bailey and the rest of the Bitcoin community is that the very powers given to control the centralized banking model are competing with and stifling the largely unregulated cryptocurrency space. about it. The current battlefield involves his two four-letter acronyms: CBDC and FATF.
CBDC or central bank digital currency A digital form of a country’s legal tender.according to International Monetary Fund, China and India, the most populous countries in the world, are the most advanced CBDC launchers.Recent European Financial Leaders firm plan Key White House Policy Advisor Towards Digital Euro 2023 shown That the US is “very close” to options for issuing a dollar-based CBDC.
“Bitcoin is serious all over the world and central banks are working on it,” he said. Frank HolmesExecutive Chairman of Hive Blockchain Technologies during a panel session at the event. “They’re trying to imitate. It’s only a matter of time.”
While major countries are moving to digitize their existing fiat currencies, the cryptocurrency community has expressed concern about the implications of such moves. In September, the Bitcoin Policy Institute announced report China’s use of CBDC is cited as a lesson for the US to consider in its own plans.
Chinese authorities indicated CBDCs should not be anonymous like cash, and the move to CBDCs has raised privacy concerns among other digital currency proponents that governments will track individuals’ spending habits. . Jerome PowellChairman of the United States Federal Reserve Board, Said If the US issues a CBDC, it’s not anonymous either.
“CBDC stands for control” Allen FarringtonAn independent journalist covering bitcoin said at a panel session at the conference: “I would rather stand for liberty.”
Growing Privacy Concerns
The battle to anonymize digital currencies and keep them under state control spills over into regulatory spheres within the European Union. Concerns about global money laundering dating back to 1989 prompted the G-7 countries to Financial Action Task Force or FATF. Since then, the group has emerged as a significant concern in the cryptocurrency world over regulation of digital currencies.
Earlier this week, the European Parliament moved forward We have plans to regulate digital currencies under the same provisions as traditional finance by making all digital transactions traceable according to the FATF Charter. The move has raised additional concerns about the privacy of future digital transactions across much of Europe and exposed vulnerabilities within the crypto community regarding how to deal with regulatory threats.
“As far as I am concerned, this FATF panel [blank] himself,’ said Matt Odell, Co-Founder and Editor-in-Chief of CoinPrices.io. “I have no faith that financial regulators will withdraw their oversight.”
Kevin Murko is the founder and CEO of the cryptocurrency exchange Coinmetro, advice Regulators and government bodies on how to apply governance to new financial markets.Murko’s position, as recently outlined blog post On his company website, decentralized finance should be regulated to control fraud and make DeFi accessible to a wider audience.
However, Murko expressed concern this week that unless the crypto community can come up with a stronger defense, the double freight train of CBDC and FATF could ruin the fledgling industry.
“We have all the tools we need to get rid of onerous regulations, but they don’t understand the technology,” says Murcko. “We have to control the narrative. We have an awful narrative now.”
WikiLeaks and Bitcoin
Nevertheless, its narrative, based on technological change and challenging established institutions, finds appeal in other areas of social change. One of his Bitcoin Amsterdam keynote speakers was Stella Assangethe wife of Julian Assange, who founded WikiLeaks, a publisher of classified information provided by an anonymous source.
When Wikileaks almost posted Half a million Confidential documents related to the 2010 U.S. wars in Iraq and Afghanistan show that PayPal accounts used by nonprofits for donations closed. One year later, payments companies account for over 97% of the global market shut off Wikileaks fundraising tap.This forced the website to look to the Bitcoin community and WikiLeaks over his decade-plus. $37 million with a bitcoin donation.
“The PayPal shutdown cut off 99% of revenue for WikiLeaks, making WikiLeaks one of the early adopters of Bitcoin,” said Assange. “Bitcoin and its technology are trying to fight censorship the same way Julian did. Anyone who challenges the hegemonic order has lessons to learn there.”
Photo: Mark Albertson/SiliconANGLE
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