From Buda.com they questioned Christine Lagarde’s statements about regulating Bitcoin
Buda.com CEO Guillermo Torrealba questions Lagarde’s statements about Bitcoin
Christine Lagarde, the president of the European Central Bank, made headlines recently for her statements, recommending regular Bitcoin. After those statements, Buda.com CEO Guillermo Torrealba said that Lagarde’s statements were late.
Christine Lagarde recommended regulating crypto currencies, saying that they were „essentially speculative in nature“ and because they are supposedly tools used to commit crimes. In this regard, Torrealba first pointed out: „In all countries of the world, economic crimes are already punished, whether they are committed using banks, cash, credit cards or crypto-money. Moreover, there are financial intelligence units (in Chile the UAF, UAIF in Colombia, UIF in Peru and Argentina) whose objective is precisely to ensure the prevention, detection and punishment of these crimes. In this sense Immediate Bitcoin is already regulated“.
Secondly, he asked: „What does the assertion that Bitcoin is essentially speculative mean? And he said: „I guess what it means is that its price is not based on its use, but strictly on the expectation that it will be worth more tomorrow, and that’s true in a way, but the comment without its deserved context doesn’t seem fair to me“.
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„Not all the demand for bitcoin is for investment, in fact at Buda.com we have thousands of Venezuelan immigrant customers who use Bitcoin to send money back home. They do so because the other mechanisms disappeared as a result of the political reality that their country is experiencing. We also have business customers who use it to pay or collect, instead of using the banking system, and so they can operate 24/7 and pay less commissions. Is this the majority? I would bet that not, but ten years ago those cases did not exist while today they are common and increasing“, added the CEO of Buda.com.
On the other hand, he also reflected: „If more than 60% of gold extraction does not go to industrial uses, but to investment, doesn’t this make gold also mainly speculative? And the national currencies, when their exchange rate shoots up in seconds as a result of an announcement by the Central Bank (like the Chilean peso a few days ago), isn’t this also speculation? Or when the price of a company shoots up because the founder tweets, isn’t this speculation? Isn’t speculation the source of financing for any venture that still doesn’t produce, but that bets on building a business? What’s the point?
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For Torrealba, there are indeed aspects of Bitcoin that are still being developed and have not yet reached their potential, however, he said: „Bitcoin is already today a useful technology for millions of people around the world.
„On the other hand, it is not right to regulate technologies, but the economic activities that use a particular technology for something that, in the traditional industry, is regulated. Committing a crime with Bitcoin is as serious (although very unlikely according to the UK’s HM Treasury, something like its financial superintendency) as committing it with any other tool,“ he said.
He also indicated that Latin American countries have a unique window of opportunity to position themselves in an incipient technology before the rest. „But the window is closing and, for a change, we are lagging behind. Smart, empathetic and timely regulation will help this industry flourish with innovations that will make the traditional -old fashioned- financial industry more transparent, secure, economic and competitive. But we have to hurry,“ he said.