The President of BaFin, Felix Hufeld, held a few days ago a speech about Bitcoin and the disruptive Potential of the Blockchain technology. His conclusion was surprisingly positive. In addition, he warns currencies against Overregulation of Crypto to destroy the Potential of the new technology. However, he also warns that an investment is highly risky.
Compares the beginning of his lecture that was subsequently published, Hufeld, the current Situation with the Start of the world widewebs, 1991 available to the public. Even Bill Gates would not have recognized in 1993, the Potential of the Internet. The question what is Bitcoin and Blockchain to the Hype and what actually has the substance, is, in his view, at present, just as difficult to assess.
He takes, however, some positive examples where the Potential of the Blockchain is to recognize already. Estonia, which was named 2015 as “the Most digital Country in the World” has simplified many services in the public administration by means of a Blockchain. In Sweden, a pilot project the course will be made in the entries in the land register on the Blockchain. Africa could succeed, in his opinion, a quantum leap, for example, in the documentation of property rights.
For the financial industry, he predicts even a possible Revolution in the Blockchain Intermediaries superfluous. This would save, in his view, money. Furthermore, he stated:
The disruptive potential of this technology for the cost saving. Completely new business models could emerge, neither you nor I think about today. And every day many people are working to find more uses for the Blockchain and the technology on a large scale.
In the context of all of the opportunities are to Hufeld but to consider the risks associated. Under no circumstances should be driven, in his view, thereof, and crypto tend to überzuregulieren currencies, and thus the Potential of new technology to destroy. He said:
It can’t be our approach, out of fear of the risks of a technology, the chances of wegzuregulieren. Innovations need just at the beginning of space to develop. […] If we see earnings Risk to financial stability or the protection of the consumer, we will recalibrate.
The opinion of the BaFin to crypto-currencies
The theme of the risks of the President of the BaFin, was, of course, on the topic of crypto-currencies. In his opinion, the Bitcoin is not a further variant of a currencies in the “classical sense”. As a currency can be viewed in his opinion, only the Central Bank money.
The task of the BaFin Hufeld sees the protection of the consumer. In particular, Initial Coin Offerings are a previously unregulated and for private investors highly speculative Investment. A note issued by its authority, traveled last year. However, each Investor is responsible for:
We will not be able to each investor, prior to his fate, and that cannot be the task of state supervision. Here, too, the Maxim applies: We have to act in a Supervisory or regulator, the financial stability would be threatened, or consumers may systematically take damage.
Ultimately, the BaFin sees its task primarily in the protection of investors, but in maintaining the stability of the financial market as a whole. The decentralised and cross-border structure to do the Blockchain, in his opinion, vulnerable to money laundering and the financing of terrorism. As the regulatory authority, his authority must, therefore, strive for “global specifications and internationally agreed prudential standards”.
From our point of view, very true and good tip Hufeld has also yet to Hand:
Investments in Blockchain remain highly speculative, even total losses I think is possible. All that is not able to cope with the loss of a larger sum, temporarily, I do not advise, in good conscience, to invest in crypto-Token.
So Hufeld speaks, in our opinion, a very important point. Crypto-currencies are compared to other Investments highly volatile. Over temporary periods, larger losses are also part possible. Therefore, no one should not invest in crypto-currencies, if he believes in the long-term success of his investment.
All in all, the conclusion of Hufeld is very positive. He believes that Blockchain technology has the potential to revolutionize the financial markets fundamental. He also tried the fate of Krytowährungen to separate the Blockchain technology.
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