23.01.2020

After regulators stone wall fall what if a corporation has its own money

The surge of interest in cryptocurrency started several years ago and is still high nowadays. Lots of people would love to use new currencies in everyday life and in business, it can bring foreign trade to another level. But such transactions must guarantee security to its users that is a question to discuss.
The moderator: Monty Metzger. Speakers: Blanca Zutta, Kairat Kalyev, Henri Arslanian, Francesco Andreoli.
The session is dedicated to the question of money source- whether private institutions or government should issue money. The moderator, Monty Metzger, CEO at Liechtenstein Cryptoassets Exchange, Vaduz, Liechtenstein believes that the relation blockchain to the money is what email to the letter. It is the introduction of new technologies to the financial monitory system which is disruptive and innovative.

Blanca Zutta, Associate Founding Member, ITSA - International Token Standardization Association, WTO, Switzerland claims that both central banks and private companies can find solutions together and issue money. Blanka talks about stable coins, its types, risks, which are usually associated to legitimacy of the companies issuing the stable coins. The problem of data lacking in money transferring should be sorted out and it will attract more investments to the Caspian region. Some challenges are mentioned during the discussion such as security risks of cash in and cash out, micro economical risks related to big amounts of transactions between the countries. In Blanca's opinion, key point may not the regulations, but standardization and collaboration.

Kairat Kalyev, Chief Development Officer at Astana International Financial Centre (AIFC), Kazakhstan develops jurisdiction based on English Law and financial services like capital markets, Islamic finance, FinTech etc. In his opinion private currency is not something new, it existed long ago in a bit different form. It is a good opportunity to sell more across the countries nowadays. But the question about correct regulations and transaction monitoring is open. If there were a proposal to issue special cryptocurrency for Caspian region and it could help to develop trade across the region and e-commerce, Kairat would vote for this opportunity. States should agree what technologies to use to make the world more comfortable.

Henri Arslanian, Chairman of FinTech Association of Hong Kong and Global Crypto Leader, Asia FinTech Leader PwC, Partner at PwC, Hong Kong, China underlines that nowadays is the most exciting period of financial history that undoubtedly will be referred to in the future. China is 2-3 years ahead of the world in FinTech without any doubt. 95% of regulators are somehow working to crypto now. 70% of banks are working in this area in research as well. He adds that we cannot define the price of cryptocurrency for the future, while stable coins such as dollars, remain stable for the long time. The goal we need to try to achieve is to make remittance of such cryptocurrencies as Libra instantaneous as we have dollars payments and money transfer now. Henry believes that 70+ countries in BRI project would love to use something outside US dollar. The main problem the countries encounter is to open bank account.

Francesco Andreoli, ETH Engineer and digital Entrepreneur. Co-founder crypto mining in Switzerland based on renewable energy (Aq. Petawatt Group, 2018). Crypto community builder. Expert in hackathons and blockchain events. We always focus on tokenizing and bringing security to the market, but not so precisely on infrastructure or nanotechnology perspectives. The key is to give people the instrument that could create technologies to support payments. Francesco focuses on end results, so he is for mass adoption of the technologies.

The speakers refer to Libra cryptocurrency that allows financial inclusion that immediately raises questions about money laundering, counterterrorist financing. It is said that the token as the technical instrument could be filled with the payment function, financial asset, copyright. The key thing here is the regulation. Monty Metzger adds that with advent of cryptocurrencies in some countries local currencies are already competing with US dollars, losing its competitive advantage.

It is concluded that everything that can de digitalized will be digitalized; the matter is who and when will do it.

The moderator: Monty Metzger. Speakers: Blanca Zutta, Kairat Kalyev, Henri Arslanian, Francesco Andreoli.
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