Safello was built on the premise that there is an exit of the existing monetary system, into something new, and this has been going, with an exponential rate, since 2009.
Cryptocurrency is a more efficient means to move money around the world. Typically, if you look at technological innovation, it will naturally flow to where you can save costs, increase efficiency and where it is frictionless. We code by the premise of enabling the bridge between the traditional financial world and the new world.
Even though the Central banks are coming up with their own cryptocurrencies, I still believe everything is going to flow to the public cryptocurrency world.
If we look at just the trading volume today, we have about five billion dollars traded daily in the crypto-market. Comparing it to the FX market, we are talking around five trillion, meaning the crypto-market is only 0.5% – a drop in the bucket.
How can Sweden reap the benefits of fast moving regulatory framework for blockchain and cryptocurrency?
Frank answers with two philosophical questions;
“Can Sweden form a landscape where ICO’s can blossom?
“Could it be connected to an e-krona?”
Japan recognised Cryptocurrency as a currency in 2017, which was a big breakthrough
Starting with traditional governance;
Japan recognised Cryptocurrency as a currency in 2017, which was a big breakthrough.
Editors note: (In November 2021 the Indian government is preparing to ban private cryptocurrencies and allow the country’s central bank to launch an official digital currency)
The US government
The U.S. seems to be deteriorating slightly, after being at the forefront of trying to regulate it. They had a Bitlicense in New York that just did not work, while other States where trying to do their thing.
The recent statement by the SEC on ICOs does show promise that they have spent their time getting to understand the technology with the objective to not suffocate its potential. A lot of things are now starting to happen and we see a really positive trend taking shape.
“To create something from a regulatory point of view, we have to sit down around the same table and test and elaborate, to move this forward. I think that pragmatism from a government point of view is important“
The Swedish government
The Government should give the Financial mandate to Finansinspektionen, both on the Fintech side as well as a wider sense, enabling them to engage fast. I recently had a meeting with Finansinspektionen at the Stockholm Fintech Hub, where we also talked about ICO´s.
There is a two year project now by the Central Bank of Sweden, Riksbanken, looking at the creation of e-krona that is kick-starting interest. To create something from a regulatory point of view, we have to sit down around the same table and test and elaborate, to move this forward.
What advise would you give to the government and to companies curious about testing this new technology?
I encourage Sweden to learn from the UK, where it has been very successful in creating a Regulatory Sandbox where companies and start-up´s can collaborate with financial institutions, within the confines of that sandbox.
There is a process involved where the regulator gives approval to do certain experiments for a period of time before deciding how to regulate it. This propels innovation.
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