Since 2016 people talk about the new economy and the benefits. Since this time a lot of projects we have seen come and go. Yes, a lot of hypes and bubbles came around and a lot of pioneers lost money. First guy in the door will be the first guy shot.
Since those days we have seen a lot of inventions. Last but not least we have been arguably become a society which rapidly made a change. Electro cars from Elon Musk and his Spaceship project. The first Smart City ever Woven City has been started to be built in Japan. We had this super run for Bitcoin and the world seems to be in a trendy year where everything seems possible.
Let’s have a look behind the curtains.
In a different world we see different tribes and as you maybe have recognized Nigeria is allowing peer – to – peer trades which means OTC business via Escrow Service. Dubai meanwhile is fighting with Canada over the leadership attracting Blockchain companies.
In the US and Europe, a regulatory fight has been outbroken over the best way to regulate the markets, but they still misuse the topic and want to get rid of Bitcoin and Cryptocurrencies.
The next big step will hit the Decentralized Financial markets as everyone has to declare himself as entity. There is no business with strangers anymore who do “banking on their own” in a trusted area which is also KYC controlled. It is about the final fight if the Generation Bitcoin will finally control the money system and on the other hand the DeFi movement will overtake traditional financial markets and become the “Apple” of banking the future outsourcing traditional companies.
And if this is possible is today a game of regulators and not the technology or the enforcement of family offices backing this version with billions of dollars. The question is, what will this new economy be worth if the government continues to kill the only difference and the stand alone point: This economy works without trust and without human intervention or third parties in custody services. This is the real deal. But what if governments like in Europe or US cross in.
Likely DLT will become the old economy which has an “electronic next generation quick book”. This technology will then be used only by internships for governments, banks and business relatives but not as a value of future generations living in an autonomous society where everyone can click and point out a smart contract for his deals.
We are at the end of a road where FinTec is nothing more than a banking game.
The Financial Action Task Force (FATF) is going to process a new regulatory framework which is a subsident of the MICA regulation. FATF published draft guidance categorizing DeFi as Virtual Asset Service Providers (VASPs) that must combat financial crimes.
The Financial Action Task Force (FATF), a global anti-money laundering watchdog based in Paris, released draft guidance on Friday that, if adopted, poses an existential threat to the booming DeFi and NFT markets, analysts say.
The Central Bank of Nigeria (CBN) has reportedly clarified that Nigerians can freely trade Bitcoin (BTC) and other cryptocurrencies.
According to a report by Nigerian news outlet Today.ng, the CBN says that a directive it released last month to financial institutions should not be interpreted as an outright ban on the use of crypto assets.
Representing CBN Governor Godwin Emefiele, Deputy Governor Adamu Lamtek highlights that only certain financial institutions are forbidden from using, holding, trading, or transacting in cryptocurrencies.
The markets are still open and even India didn’t ban anything and won’t do soon. The big question: Does the tokenomy support only the NFT guys creating asset value, or will we see a decentralized financial system which kills the barriers of unbanked? Likely the more money is rushing in the more people just join without the reason to make a change. They just in for one reason – high profits. Maybe strong regulations will change the point of view. But for now, it is a game for well suited people.
If governments stop exchanging Bitcoins via banks, this will hurt the whole economy and the tax authorization. The value of Bitcoins will be liquid on the street. Bitcoin does not need banks and authorities to be cashed out. This Governments finally understand in the last years. But we have to change our economy if we want a fair system in the world.
Written by : Prof. (Dr.) h. c. Joerg Molt