The Davos Forum Or When The Gravediggers Of Finance Attack The Cryptocurrency
Davos, its beautiful Switzerland of January , its beautiful snowy slopes, its summit bringing together the most beautiful plants of the world politics and finance. The forum of Davos is the high mass of each beginning of year . Some believe that it is essential to decide the future of our societies. Others excrete it because it brings together within it all that financial power can do worse . But this year, Davos introduced a novelty that all cryptophiles were waiting for: the fear or even the detestation of bitcoin and cryptocurrencies .
Under their beautiful circumstances, those who created the latest financial crises are the same who are offended to see a section of the economy escape them. They refuse to see these hundreds of billions of euros out of the system! From the dark web they say, from the financing of drugs, even terrorism. It is well known how Daesh finances himself? With bitcoin pardi! (In fact, only one person has been reported to have sent money to the terrorist group ). Bitcoin is referred to as absolute evil , while refraining from evoking the last decades of crisis and a gloomy future . Here is my rant on the subject, which will be a little long, I thought quickly …
Bitcoin and cryptocurrencies are illicit
Steven Mnuchin, the secretary of the US Treasury, close to Donald Trump, tries to stay soft while doing hard . For him, the problem of bitcoin and cryptocurrency is their illegal or potentially illegal use . ” My number one goal is to make sure that cryptocurrencies are not used to fund illegal activities, ” he says. Of the great classic in sum …
The illegality of bitcoin and cryptocurrency is a throbbing thought of the powerful . Those who swear by the current banking and financial system see red when a small community places their marbles out of the system. Whoever says outside the system says money escapes global finance. It has been repeatedly said that bitcoin does not fund crime any more than money or money laundered by commercial banks. Never mind, let HSBC continue its business while tapping on bitcoin, logical!
Christine Lagarde or when the cardboard visionary returns his jacket on the bitcoin
The Executive Director of the IMF is a bit of the worst economy . Christine Lagarde is a Minister of Economy and Finance who was unable to see the reality in 2008 . An article brings together his most beautiful pearls . A whole year to deny the financial crisis and its disastrous consequences in France and Europe. A height of incompetence for a sector minister! What was the penalty for professional misconduct of Ms. Lagarde? A promotion as Executive Director of the IMF , a highly paid job with many benefits. If all the lambda employees could have the same vein …
Christine Lagarde, however, has a lifeline in an ocean of nonsense: she was one of the first in the financial world to raise the positive cryptocurrency . She said in September 2017 that citizens may one day prefer bitcoin and its counterparts to traditional currencies . In view of his intuition close to nothingness, we could then worry about their future. But, rest assured, Mrs FMI has recently returned her jacket to affirm, with certainty that the anonymity of bitcoin is likely to facilitate money laundering and dirty money . She added that this would not allow the financial stability and transparency of financial transactions!
Phew! Back to square one ! Speaking of anonymity bitcoin, Lagarde proves once again his lack of culture since the bitcoin is, we know, pseudonym . Talking about the threat to financial stability and, more funny, transparency ready to smile. Can we then explain to citizens how central banks can create billions to save commercial banks? An obscure creation, coming from nowhere (we speak of creation ex nihilo ), which can be decided in a few hours, to save commercial banks which fatten often on the back of the customers . And Lagarde speaks of cryptocurrencies as a threat to the transparency of financial transactions?
The regulation of bitcoin and cryptocurrency as a new battlehorse
All the great leaders of the world agree on this point. The world of cryptocurrencies must be regulated. As a preamble, we can see that this would go hand in hand with the current financial system. Indeed, banks and financial securities are in principle regulated. But there is the reservation of what was mentioned in the preceding paragraph with the monetary creation. An essential reserve since we are talking about billions of euros …
In Davos, Theresa May and Emmanuel Macron launched hostilities . The British Prime Minister follows the classic path by considering that cryptos can be mainly used by criminals of all kinds. Like all, May seems to forget that cash is a real means of payment anonymously and probably preferred to finance illegal activities. But let’s move on … Bitcoin and its sisters must be regulated in order to prevent hidden money from escaping the authorities.
Emmanuel Macron offers even better. Calling for regulation, President Macron wants the monitoring of the entire global financial system back … to the IMF . Macron adds with mischief that bitcoin is one of the most aggressive financial assets , the same ones that are responsible for the instability of the financial system and the crises that ensue from it! Coming from a former business banker, we could almost laugh. Incidentally, dear Manu no longer speaks of a ban. It is true that wanting to tax something forbidden would be a challenge.
Where all the leaders of our world are mistaken is that they believe that the problem of cryptocurrencies is mainly the use that would be made by criminals because of this lack of regulation. Hence the few calls for the ban. But, if we follow this meaning, why continue to authorize cash? It is the only one to today allow a total transactional anonymity (with certain particular cryptocurrencies like Monero but computationally, it is possible that there is a trace somewhere).
Should we regulate bitcoin and cryptocurrencies?
Flushed by their ignorance of cryptocurrency, frightened by something that escapes them completely, the leaders of our world are in denial . Bitcoin is the evil designated, the devil who will unscrew a system they have dug the grave for a long time. Yet the idea of regulation as such would not be as demagogic and bad as one might think.
The British Chancellor of the Exchequer, Philip Hammond, is much more positive about the future of cryptocurrencies. He believes that bitcoin is a very interesting new development, which should not be denied the future impact on the economy . More generally, leaders are unanimous on one thing: blockchain technology is great! This remark may seem childish even ridiculous since the bitcoin is, more or less, at the origin of the blockchain but it is what could save the cryptocurrency of a permanent lynching.
A reasoned regulation of bitcoin and cryptocurrencies would, in my opinion, have a positive impact . On the one hand, like it or not, the majority of citizens are afraid of their finances. System-regulated assets, whether they support it or not, will always have a reassuring effect and the number of investors will increase. The anarchist cryptophile is not in the majority and will never make the cryptocurrency of a financial dwarf a global trading system.
On the other hand, reasoned regulation would have the effect of making bitcoin and cryptocurrencies a legal means of payment in the strict sense of the term. Today, there is still a shadow that is, again, afraid of the majority. The goal is to convert this majority to cryptocurrency , an adoption that would have a negative impact on the banking system but positive for the real economy.
However, regulation under the aegis of the IMF would be a mistake . Run by an incompetent, this organization is far from being free of any reproach for several years, some cited before this long article. It is necessary to find a concerted regulation, taking into account the opinions of all the actors involved and not only the partial financial actors . Entrepreneurs who are part of the world of cryptos, pioneers like Gavin Andersen (or other) for example, must also be integrated into this future regulation. For cryptocurrencies to become financial tools in their own right, recognized and globalized.