Cryptocurrency ecosystems tend to have rules like "bad old wolves". In this story, the government and regulators have established rules that slow innovation and increase damage to the cryptocurrency industry. That may have happened a few years ago, but now it is not, according to BitPanda CEO Eric Demuth: "Depending on the regulation, this could be quite a good thing now that the industry and many companies have already reached a large scale. "
Demuth is a keynote speaker at the Blockchain Economy 2020 conference held in Istanbul, Turkey. He took time for a quick chat with Cointelegraph Turkey on February 20, the first day of the event.
Demuth started the interview with one notification: Turkey is BitPanda's first stop outside the European Union. Why? He listed a number of reasons, such as cultural ties, geographic proximity, and “two hours away by plane”. But the main reason remains that there is a high demand for cryptocurrencies.
Bitcoin is “gold 2.0” because …
As the CEO of a Bitcoin (BTC) exchange, as well as precious metals like gold, silver and platinum, Demuth did not hesitate to call BTC “gold 2.0” or “the best version of gold”.
As the demand for digital assets increases, he said, so does the demand for precious metals. “That supports my hypothesis that Bitcoin is gold 2.0 for the younger generation and 'more digital'.” In addition to being scarce and functional, he said that digital currencies are easy to liquidate quickly, freely transferable and can be stored in your pocket, he added:
"I think that cryptocurrencies have become an asset class that their own will never disappear again. They will always be there. In particular, Bitcoin is like the gold standard of cryptocurrencies. There will never be a world without digital assets or digital money. "
The EU has made a wise decision
When asked if regulations were a challenge for the cryptocurrency industry, Demuth took a second to think about it, as this has changed over the years, and according to him:
"In Europe, we have AML5 regulations now. It is similar to banking regulations. 4 years ago, that would kill all companies and innovation in Europe. Imagine you're just a new startup, you can't achieve this. "
That's why the European Union made a wise decision not to intervene in the cryptocurrency landscape in the first place, Demuth added: "They just observed, let everything happen, for they (startups) a broader framework. The EU waits for the entire industry to be large enough to begin defining the rules. "
Cryptocurrencies cannot have “the Wild West.”
Because the name of the event was Blockchain Economy, Cointelegraph asked Demuth about his take on the essentials of the blockchain-based financial structure. Surprisingly, he takes a somewhat realistic stance on specific factors, such as decentralization. “Decentralization is what we all want, but I don't think it will happen in a very free form,” he explained:
"Governments and regulators always want certain people to be responsible for everything. You cannot have a wild West. Because that will open the door to scammers, false advertising, etc. Governments and regulators want control. When you have something really decentralized, it doesn't fit. "
But again, why are decentralized exchanges mentioned so much? “It was in a very early stage,” Demuth answered. “Since they are not in large volumes, this is not an important market for regulatory agencies to consider.”
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According to CoinTelegraph
Translated by ToiYeuBitcoin