Cryptocurrency is better regulated - regulation
Cryptocurrency is better regulated - regulation
The former US finance minister and chief economist of the World Bank, Larry Summers, says that cryptocurrencies are better regulated instead of being treated as libertarian paradise.
Larry Summers sees crypto benefits from a strong regulation
Lawrence Summers, who worked as finance minister in the Clinton administration and director of the National Economic Council of the White House in the Obama administration, spoke in an interview with Bloomberg on Friday about the regulation of cryptocurrencies. Summers, former chief economist of the World Bank, is currently emeritus president of Harvard University.
He was asked why regulatory authorities are "deeply skeptical" towards cryptocurrencies worldwide. China, for example, was Hart on crypto activities. Summers began to find out that the word "crypto" suggested a "desire for confidentiality in relation to large financial sums", and explained:
When large sums of money happen in secret, there is a risk of money laundering, the risk of supporting different types of criminal activities, and the risk of innocent people will be ripped off.
"The truth is that we have no viable aircraft industry if we did not regulate flight safety," he continued. "We would not have the transport system that we have if we did not regulate auto security."
He added that the blockchain-based payment industry will be "better regulated in a solid way instead of trying to be a kind of libertarian paradise", and noticed:
I think the crypto community has to recognize this and cooperate with governments, and if they do this. I think this innovation can be one of the most important innovations of that time.
The former chief economist of the IMF pointed out that some people believe that cryptocurrency will be "a kind of libertarian paradise in which we will not be able to enforce bank rules, such as knowing their customers". [Kyc], where we can move money freely and avoid taxes. ”
Summers said: "I think it is a realization that all industries have to arrive with systemic importance," added:
It is not completely unlike the discussion about large technology companies. You need a regulatory framework. You don't just need it to protect your consumers, you need it for your own protection.
Finally, he said: "If we didn't have a strong SEC, we would not have the New York Stock Exchange as the center of the world stock exchange market," and emphasized: "Even if people don't like the rules."
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