Crypto allows you to manage your money in a decentralized way. This means: storing your money, making transfers, making loans, investing in companies… without going through a central intermediary like a bank. It is computer code, the famous blockchain, that is replacing the major players in finance as we know it today.
Why is it so important? Because finance is the blood of our economy. Now that blood is sick and crypto could be the antidote that would make finance:
- More transparent, because everything is traceable
- Fairer, because the rules are the same for all citizens. They are fixed by a mathematical mechanism, not by human arrangements.
- It is more accessible, because it is accessible to everyone with a simple internet connection, and the elimination of middlemen reduces costs and hurdles.
It is also and above all a democratic issue because thanks to the direct possession of an e-wallet, no one, neither the bank nor the authoritarian state regime, can cut off access to your funds.
Today, when people hear about cryptocurrencies, but don’t make an effort to fully understand how they work, companies like FTX or Binance show up and tell people: “Give me your cipher, I’ll run it for you!” And some add:On top of that, I’ll give you a great return! “. As a result, they actually become like banks: central players! But unlike banks, they are not regulated or poorly regulated. So it’s the worst of both worlds! The danger we see today. Leaders can misbehave, cheat, go bankrupt, and lead to disasters like FTX.
Let’s not have too short a memory: the crisis of 2008, which had catastrophic consequences for the economic world, was caused by the unhealthy management of the central players (Lehman Brothers, but also for us, Fortis), looking for ever greater returns. It’s the same phenomenon with FTX. It is precisely these risks associated with centralization that cryptography can solve.
By the way, note that this crisis shows us that the “too big to fail” principle is questionable, because in the case of cryptocurrencies, the ecosystem does not ask for any help from states and central banks. However, the missing amounts also run into the tens of billions. It is not the taxpayer who will pay, but the cheaters and, unfortunately, the investors.
I believe centralized crypto platforms are useful for bridging centralized and decentralized finance. They help people take their first steps in coding. But they must be regulated and monitored to protect the investor. I therefore invite the political world, instead of turning a blind eye or wanting to ban them, to put in place good regulation and effective control, especially of the reserves. The upcoming European MiCa regulation brings, in these aspects, some pluses.
But above all, in the name of all the advantages that I described above, it is necessary to develop decentralized finance and a collective awareness of the difference between the two. So I think we’ll continue to have centralized finance, piloted by banks and countries, but along with that we’ll also have decentralized finance that’s more transparent, fairer and more accessible. As force and counter force, they do not wage war, but reinforce each other.
Finally, let’s be clear, this is not a problem with cryptocurrencies themselves, but with human greed and mismanagement. This is where we need regulation: to prevent some people from manipulating the markets and playing with other people’s money, whether in crypto or traditional markets.
Decentralization is also a realm of responsibility. Where everyone should be aware of the currency they are using, where they are investing their savings… This empowerment is the price to be paid for fairer financing, the financing in which the last privilege of the wealthy disappears: the financial impoverishment of the culture of the largest number.
note: I will come back later to the criticisms I hear often (environmental impact, financing illegal activities, money laundering and tax evasion, speculation, etc.). I can’t cover everything at once. Feel free to contact me until then to discuss.
Christophe de Boeckeler, deputy Le Angers
cdebeukelaer@parlement.brussels
Twitter / @cdebeukelaer
Instagram / @cdebeukelaer
Facebook/chrostophedebeukelaerofficiel
Why is it so important? Because finance is the blood of our economy. However, this blood is sick and crypto can be the antidote that would make finance: it is also and above all a democratic issue because thanks to the direct possession of the electronic wallet, no one, neither the bank nor the autocratic state of the system can’. Don’t cut off access to your money. Today, when people hear about cryptocurrencies, but don’t make an effort to fully understand how they work, companies like FTX or Binance pop up and say to people, “Give me your cryptocurrencies, manage them for you!” And some add: “Besides, I’ll give you a huge return! “. As a result, they actually become like banks: central players! But unlike banks, they are not regulated or poorly regulated. So it’s the worst of both worlds! The danger we see today. Leaders can misbehave, fraud, bankrupt, and cause disasters like FTX. Let’s not have too short a memory: the crisis of 2008, which had disastrous consequences for the economic world, was created by the central players not sound in management (Lehman Brothers, but also for us, Fortis), in search of ever greater returns passed. It’s the same phenomenon with FTX. It is precisely these risks associated with centralization that cryptography can solve. By the way, note that this crisis shows us that the “too big to fail” principle is questionable, because in the case of crypto, the ecosystem does not require any help from states and central banks. However, the missing amounts also run into the tens of billions. It is not the taxpayer who will pay, but the cheaters and, unfortunately, the investors. I believe that centralized crypto platforms are useful in bridging centralized and decentralized finance. They help people take their first steps in coding. But they must be regulated and monitored to protect the investor. I therefore invite the political world, instead of turning a blind eye or wanting to ban them, to put in place good regulation and effective control, especially of the reserves. The upcoming European MiCa regulation brings, in these aspects, a positive. But above all, in the name of all the advantages I have described above, it is essential to develop decentralized finance and to be collectively aware of the difference between the two. So I think we’ll continue to have centralized finance, piloted by banks and countries, but along with that we’ll also have decentralized finance that’s more transparent, fairer and more accessible. As force and counter force, they do not go to war, but reinforce each other.. Finally, let’s be clear, this is not the problem of cryptocurrency itself, but of human greed and mismanagement. This is where regulation is needed: to prevent some people from manipulating markets and playing with other people’s money, whether in crypto or traditional markets. Decentralization is also a realm of responsibility. Where everyone should be aware of the currency they are using, and where they are investing their savings… This empowerment is the price to be paid for fairer financing, the price at which the last privilege of the wealthy disappears: the financial lack of greater culture Note: I will return later to the criticisms which are often What I hear (environmental impact, financing illegal activities, money laundering and tax evasion, speculation, etc.). I can’t cover everything at once. Feel free to contact me in the meantime to discuss.