Blockchain technology is a distributed ledger system that allows secure and transparent transactions without the need for intermediaries. The technology gained widespread recognition with the creation of Bitcoin, the first decentralized cryptocurrency. Since then, blockchain technology has evolved beyond just cryptocurrencies and has been used in various industries such as finance, healthcare, and supply chain management. In this article, we'll take a closer look at what blockchain technology is, how it works, and its potential applications.

What is Blockchain Technology?

At its core, a blockchain is a #decentralized database that is shared across a network of computers. It records transactions in a way that is secure, transparent, and tamper-proof. Every transaction on the blockchain is verified by a network of computers, and once it is validated, it cannot be changed. This makes the blockchain an immutable ledger, providing a level of trust and transparency that is not possible with traditional centralized databases.

How does Blockchain Technology Work?

A #blockchain consists of a series of blocks that are linked together. Each block contains a set of transactions, and once a block is added to the chain, it cannot be altered. The process of adding a block to the chain is called mining, which is done by a network of computers that compete to solve a complex mathematical problem. Once a miner solves the problem, the new block is added to the chain, and the miner is rewarded with cryptocurrency.

Each block in the blockchain contains a unique code called a hash. The hash is a digital fingerprint that represents the contents of the block. If someone tries to change the contents of a block, the hash will no longer match, and the block will be rejected by the network. This makes it virtually impossible to tamper with the blockchain.

Blockchain technology uses a consensus mechanism to ensure that all transactions are validated by the network. There are several consensus mechanisms, including Proof-of-Work (PoW) and Proof-of-Stake (PoS). PoW is the most commonly used consensus mechanism in blockchain networks and is used by Bitcoin and other cryptocurrencies. PoS is an alternative consensus mechanism that uses a different approach to validate transactions.

Applications of #Blockchain Technology

Blockchain technology has many potential applications beyond #cryptocurrencies. One of the most promising areas for blockchain is supply chain management. By using blockchain technology, companies can track the movement of goods from the point of origin to the point of consumption. This can help prevent fraud, reduce costs, and increase efficiency.

Another area where blockchain technology can be used is in healthcare. By using blockchain technology, healthcare providers can securely share patient data across a network of providers. This can help improve patient outcomes by providing healthcare providers with more complete information about a patient's medical history.

Blockchain technology can also be used in voting systems to prevent fraud and ensure transparency. By using blockchain technology, voters can be sure that their vote has been counted and that the results of an election are accurate.

Final Words

Blockchain technology is a game-changer that has the potential to transform many industries. Its ability to provide secure, transparent, and tamper-proof transactions makes it a powerful tool for businesses, governments, and individuals. While blockchain technology is still in its early stages, its potential is enormous, and we can expect to see more applications of blockchain technology in the years to come.

As confidence in the banking sector may soon be restored following the recent #SVB bank failure, customers might begin transferring their funds back into banks. This potential shift could cause a significant outflow of capital from high-risk assets, such as #cryptocurrencies.

Consequently, the #crypto market may experience a considerable price correction or even a black swan event, as the recent rally was primarily driven by the bank's collapse. Furthermore, #Bitcoin (BTC) is currently approaching a key resistance area at $30,000.

We will closely monitor the market for possible reversal scenarios. #BTC s movement around this critical level could play a significant role in determining the short-term direction of the crypto market.

We are beginning to see signs of the emergence of a #decentralized internet. But, many people are still unaware of what this new internet will act like. No one knows for sure exactly how #web3’s development will eventually unfold, but the signs are clear as to what users will be able to do with it. 

 

Throughout the 21st century, data has been at the forefront of discussion when discussing the legacy web 2.0 internet. Whereby, large private organizations have been harvesting massive amounts of data from the public and selling it to other organizations without compensating the owners at all. 

 

In a web3 architecture, the keyword that’s buzzing around is ‘ownership’, and this ultimately means that users/individuals will have full control, I.e "ownership", over all their data and content. Let’s break this down into how exactly this will be done. 

 

A new communications network, owned by the people

 

Digital messaging is an aspect that many cannot live without. Over the years many messaging applications have revealed privacy flaws that leave many user accounts vulnerable.

Currently, a centralized architecture usually stores and records all of an individual’s messages. How this works is, person A sends a message to person B. But that message doesn’t travel directly from person A to B. It instead travels from person A to the service provider, whether that be Facebook, Tencent, or other service providers, and then gets sent to person B. This information is stored on a centralized server that can access your history at any time. 

 

What a decentralized communications network can do is, open a direct line between person A and person B, to allow direct messaging, completely removing the storage aspect of a service provider. Not only is the message completely private, but no one can see any information between the two parties. 

 

Although web 2.0 is dominated by companies such as Amazon, Google, and Facebook, a web3 decentralized internet will not push the attention away from these organizations but instead creates an opportunity for them to work with a web3 architecture. 

 

As data will still be an important aspect for these companies, there could be a hybrid model whereby these organizations pay individual users monthly for access to their data. 

 

There are numerous obstacles that stand in the way of a decentralized internet, but one main concern will be access to the information we see today. This poses a challenge for #Dapp developers to create a system that enables similar information to be categorized and stored among numerous nodes within a decentralized network. 

 

Currently, decentralized storage is slowly becoming more popular, but, blockchain projects have still yet to solve the access to content sharing and streaming model that we see in a web 2.0 network.

 

This is an aspect that many fans of the new internet must take into account. The internet is basically one huge library of information, and so, in order for a decentralized internet to offer similar information, there must be mass adoption of content creators all contributing similar content as they did on the web 2.0 to the web3. 

 

 

Individual identification management systems on a web3 network

 

A people’s-owned internet can also break down the barriers of identity management systems. Something that big-name companies have been unable to achieve. Not through lack of trying, but the liability would be too great if they were to be hacked. 

 

A decentralized internet can actually be used to enable an identity method that enables users to access any type of content, Dapps, and services without having to create numerous accounts to do so. Instead, have one account to access all. 

 

This can be achieved, as a decentralized internet architecture will be used in parallel with blockchain technology that uses systematic consensus mechanisms that can authenticate a person’s identity without actually revealing any information about that person. 

 

Although this system will have numerous issues when implemented on a government level, daily use of accessing the internet can be a viable solution that not only protects private information about an individual but also makes access smoother and more simple than what we see today. 

 

 

The decentralized internet will not be an easy transition

 

The transition from a web 2.0-based internet infrastructure to a web3-based one will be accessed differently from what’s being used today. A decentralized internet will ultimately be shaped by numerous distributed nodes across the globe.

 

Accessing these nodes’ content will need touchpoints in the form of some type of portal. As many blockchain networks are designed to solve different issues, it will be hard for users to continually cross between different platforms to access the content they’re looking for.

 

This means companies need to create a cross-chain solution that will enable users to move seamlessly across different networks and access the services provided on those platforms. The next generation of the internet seems to be moving in the direction that will be comprised of numerous blockchains all connected together through a bridging protocol.

 

Although there are not many chains dedicated to acting as a foundational layer for web3. There are multiple chains attempting to build the underlying network that will support the entirety of the new internet.

 

As these chains have set out to solve specific problems, A network such as NetFlowCoin’s protocol can act as the communications layer that will enable users to interact with the web3 similar to how users currently interact with the web 2.0.

 

Through a bridging protocol, NetFlowCoin’s network could be integrated alongside other chains within the industry, generating the glue needed to combine and expand the new internet into what everyone is envisioning it to be.

 

In conclusion: Decentralization is the future, and no one can stop it

Although there is hype around the novelties that we are seeing today, in terms of #NFT (non-fungible tokens), virtual real estate, and #cryptocurrencies. The bigger picture is more than what is being spoken about on the surface. 

 

We are part of a digital evolutionary stage that has unlocked a path for people to control what is seen, used, and shared online. The way in which we can communicate can be changed, and no longer be confined by the keyhole that so many companies are forcing us to only see through. 

 

Governments, media, and conglomerates will now need to adapt and change their digital strategy to be a part of this people-first decentralized internet and give value instead of blockades for what is to come, and for what is deemed the future. 

Cryptocurrencies have become an increasingly popular investment option in recent years, with Bitcoin being the most widely recognized and valued. However, for beginners, the world of cryptocurrencies can be daunting. Here are a few steps to help get you started:

1. Research: Before anything else, it is important to conduct extensive research on the different types of cryptocurrencies available, how they work, and what makes them unique. This includes understanding the underlying technology, blockchain, behind each cryptocurrency and how it impacts their value.

2. Choose a cryptocurrency exchange: A cryptocurrency exchange is a platform for buying, selling, and trading cryptocurrencies. There are many different exchanges to choose from, but it is important to choose one that is reputable and secure. Coinbase, Binance, and Kraken are some popular exchanges.

3. Set up an account and secure your wallet: After choosing an exchange, set up an account and create a cryptocurrency wallet. A wallet is a digital storage space for your cryptocurrencies and it is important to keep it secure with a strong password and multi-factor authentication.

4. Buy and sell: Once your account is set up, you can start buying and selling cryptocurrencies. It is important to start small and consider investing in a few different cryptocurrencies to diversify your portfolio. Keep an eye on market trends and news, as they can significantly impact the value of cryptocurrencies.

5. Understand the #risks : As with any investment, there are risks involved with investing in cryptocurrencies. The value of cryptocurrencies can be extremely volatile, and it is important to be prepared for potential losses. It is also important to be aware of scams and fraudulent activity in the cryptocurrency market.

In conclusion, investing in cryptocurrencies can be a rewarding experience, but it is important to approach it with caution and educate yourself thoroughly before diving in. By doing your research, choosing a reputable exchange, securing your wallet, and starting small, you can begin your journey into the exciting world of #cryptocurrencies. .

#crypto2023 Beset by an eight-figure hack, the operations of institutional crypto prime brokerage Floating Point Group (FPG) were on the brink on Friday, according to two sources familiar with the matter.

In the near-immediate aftermath of the hack, which resulted in the loss of a preliminary estimated $15 million to $20 million in #cryptocurrencies. FPG moved to shutter its trading activities, the company said via Twitter on June 14.

Both sources claimed that around that same time, the US-based FPG parted ways with a significant number of staffers — a move evidently designed to buffer the firm’s balance sheet as the business dealt with a standing loss of the entity’s core trading revenues.

Those layoffs mounted to a figure encompassing virtually all of FPG, apart from the company’s core team, including its founding members, both sources said. One source said as much as 90% of staffers were let go.

Both sources, who were granted anonymity to discuss sensitive business dealings, said the expectation among FPG’s counterparties is that it would close down. But an unwinding could also take the form of an acquisition, or an outright purchase, of some or all of FPG’s apparently distressed assets, extending to the company’s tech stack.

Asked whether FPG was shutting down, John Peurifoy, the startup’s chief executive and co-founder, told Blockworks on Friday that “we don’t know yet, genuinely.”

Nine in 10 staffers let go was too high of a figure, according to Peurifoy, who said the “majority” of employees were no longer with the company, but declined to specify exact numbers.

Several staffers who survived an initial round of cuts following the June exploit were let go a couple of weeks later, one source said. One possible explanation is that FPG was keeping them on the payroll in a bid to drum up any interest in a round of emergency financing to get the business back on track — or to entice a possible purchaser. FPG executives have been speaking to a number of potential outside investors since the incident, though there is no indication those talks have amounted to much.

Complicating any kind of outside deal is the fact that FPG’s hack had yet to be resolved, at least publicly. Its perpetrators were not identified, with FPG referring to the breach as a “cyber security incident.”

1/5 On Sunday, we experienced a cyber security incident. Upon discovery, we locked all third party accounts and migrated and secured all wallets until we better understand the scope and circumstances of this incident.

— Floating Point Group (fpgcrypto) June 14, 2023

The company said it had alerted law enforcement to the breach when it became aware of it, going on to work with “the FBI, the Department of Homeland Security, our regulators, and Chainalysis to understand how this occurred and to recover assets.”

On its website, FPG touted its trading customers, including #crypto hedge funds, as having more than $50 billion in assets. It listed its DeFi vault, which routed customer assets to a range of trading platforms, including Maker, Lido and Uniswap.

Declining to comment on the ongoing investigation or the prospects of raising additional capital, Peurifoy said the company is “in a holding period right now.”

“I genuinely don’t know what the future of the organization is and what we want to do with it…we effectively, right now, are leaving avenues open,” he said. “We’re still having conversations with people…going through a lot of discussions, exploring several different routes.”#pepe

In the volatile world of cryptocurrencies, bearish market conditions often create fear and uncertainty among investors. While many instinctively rush to sell their holdings during a market downturn, this topic explores the arguments against selling crypto in a bearish state. By examining the potential risks and rewards, it becomes apparent that holding onto #cryptocurrencies. during a bear market may yield long-term benefits that outweigh the short-term losses.

Timing the Market and Emotional Decision-making: Attempting to time the market by selling during a bearish period and buying back at a lower price is a high-risk strategy. It requires accurately predicting market movements, which even experienced traders struggle to accomplish consistently. Emotional decision-making, fueled by fear and panic, often leads to selling at the bottom of the market, resulting in missed opportunities for recovery and potential losses. Holding onto #crypto2023 during a bearish phase avoids the complexities of market timing and allows for a more patient and strategic approach.

Historical Market Cycles and Potential Recovery: Cryptocurrency markets have historically exhibited cyclical patterns, with periods of bearishness followed by significant price recoveries. While past performance does not guarantee future results, it is worth considering that previous bear markets have been followed by substantial bull runs. Selling during a bear market means potentially missing out on the subsequent upward momentum, as cryptocurrencies have the potential for rapid price appreciation. By holding onto your crypto, you maintain the opportunity to benefit from future market recoveries.

Long-Term Investment Perspective: Cryptocurrencies, particularly well-established ones, have shown the ability to recover and thrive over the long term. Selling during a bear market may lead to regret if the value of the cryptocurrency rebounds in the future. Holding onto your crypto allows you to maintain confidence in its long-term potential and ride out the short-term fluctuations. Investors who adopt a long-term perspective often benefit from the compounding effect of market growth and avoid making hasty decisions based on temporary market conditions.

Cost of Selling and Re-entry: Selling your crypto during a bearish market incurs costs, such as transaction fees, taxes, and potential slippage. Additionally, if you choose to re-enter the market later, buying back your crypto at a lower price becomes challenging due to the risk of missing out on sudden price rebounds or the cost of waiting for confirmation of an upward trend. Holding onto your crypto avoids these costs and simplifies your investment strategy by eliminating the need to time multiple buy and sell transactions. #Binance

MAS and #Google Cloud Partner to Develop Generative #AI Technology Capacities.

Chinese Yuan is an Important Currency for #Crypto Traders.

To investigate possible applications for Generative AI in business processes and operations

Good morning tech fam, here are some quick tech updates for you to catch on to!

What’s New Today: Despite rising job vacancies and declining layoffs, the US labor market is nevertheless robust.

Fast-Track Insights: Chinese Yuan is an Important Currency for Crypto Traders.

A Memorandum of Understanding (MoU) was signed on Wednesday by the Monetary Authority of Singapore (MAS), the central bank of Singapore, and Google Cloud, a leading supplier of cloud computing services, to work together on generative artificial intelligence (AI) solutions that are based on ethical AI principles. According to a joint release, the cooperation will investigate technological possibilities to enhance the creation and use of ethical generative AI applications inside MAS and to foster the development of engineers with deep AI skill sets.

U.S. job vacancies unexpectedly increased in April, and figures from the previous month were revised upward, indicating ongoing strength in the labor market that may force the Federal Reserve to increase interest rates once more in June. The Labour Department’s JOLTS data, released on Wednesday, also revealed a considerable decrease in layoffs in the previous month. In April, there were 1.8 job postings for every jobless person, up from 1.7 in March and far more than the 1.0–1.2 range seen as being compatible with a jobs market that is not driving up inflation.

Data science hailed as the cornerstone of the 21st-century technological revolution, has transformed industries with its ability to extract insights from data. However, a closer examination reveals that data science is a discipline that has only recently emerged, bridging the gap between a data-poor past and a future dominated by intelligent systems. With the proliferation of digital platforms such as the internet, social media, e-commerce, and IoT devices, we are now inundated with vast amounts of data. Data science has played a pivotal role in making sense of this data deluge, but as technology advances, the focus has shifted to the complex AI systems that rely on this data. 

One of the five currencies included in the IMF’s basket of SDRs, the Chinese yuan (CNY), has had its worst performance versus the US dollar (USD) since September, down 2.7% this month. Going back to February, the depreciation against the dollar amounts to 5%, and the world’s largest investment bank, Goldman Sachs, predicts it may fall much more. Yuan depreciation has traditionally been seen as positive for alternative fiat currency assets like gold and bitcoin, but a strong dollar is the flip side of that equation. According to some experts, the U.S. dollar is already on the rise, and additional strength might result in a continuation of global monetary tightening and drag on risk assets, including #cryptocurrencies.

In order to better prepare for Bitcoin’s next halving (the halving of miners’ rewards per validated block of BTC), which is expected to take place around the beginning of 2024, this new article looks at recent movements in the crypto market to try and understand which sectors and tokens are delivering the best performance in this early part of the year.

Figure 1 shows 25 of the top tokens in the crypto landscape. These are the most capitalised (excluding stablecoins) and belong to different sectors such as DeFi (AAVE), Gaming (AXS), Exchanges (BNB), Layer 2 (MATIC) and of course the two main cryptocurrencies BTC and ETH.

Figure 1. Most capitalised crypto yields in early 2023

The last date taken into account for these calculations is 23/05/2023, while the first date is obviously 01/01/2023. In these first months, most of the stocks under consideration have shown a positive performance.

In fact, only APE and LUNC show negative returns of -8.73% and -40.54% respectively. We all know by now the sad epilogue of the LUNA project, which saw everything it had built destroyed in a matter of days, leaving many investors on the brink and triggering a chain reaction throughout the sector. APE, on the other hand, a project at the heart of the NFT sector, probably paid for the sharp rise seen in 2022 following its listing on #Binance .

Currently, the best performing #cryptocurrency in 2023 is Solana (SOL) with a performance of 98.6%, followed by Fantom (FTM) with a return of 83.6%. Also performing well are Curve (CRV) and Decentraland (MANA) with performances of 65.4% and 60.19% respectively.

Bitcoin (BTC) also performed very well, rising from $16607 to $27334 in 2023, a positive result of 64.6%. Ethereum (ETH) is a little further down the list, up a good 54.29%.

Scrolling down the list, a number of altcoins from different sectors stand out, such as Cardano (ADA) with 48.37%, SandBox (SAND) with 32.56% and so on.

Among the worst performers are Dogecoin (DOGE), which is hovering around parity (3.9% to be precise), Axie Infinity (AXS) with a slight increase (considering the volatility of the crypto sector) of 9.31% in 2023, and of course the aforementioned APE and LUNC.

These results might suggest that a new rally in cryptos is on the horizon, but in reality the road back to the highs of recent months is still a distant mirage for most of them. Indeed, in Figure 1, in the column labelled ATH (all-time high), it can be seen that the distance between the current price and the all-time high is still very large.

Suffice it to say that despite bitcoin’s recent rise of 64.6%, the distance from the all-time high is still very pronounced (-60.37%). For altcoins, the figure is even worse, with tokens well over 90% away from all-time highs.

All of this means that, as can be seen in Figure 2, to recover these drawdowns and return to historical highs, there needs to be a much bigger rally than we have seen so far. In fact, to recover a 50% drawdown would require a 100% positive performance. Similarly, to recover a 60% drawdown, a 150% performance is required, and so on down to 90%, where a 900% rally is required to return to historical highs.

Figure 2. Summary table of the yield required to recover a drawdown

This period in history could certainly be a good time for those who believe in these projects to accumulate some #cryptocurrencies. , given the strong drawdowns and the imminent halving of bitcoin, but beware, it is by no means a given that cryptocurrencies that have experienced drawdowns of over 90% can definitively recover the lost ground.

Cryptocurrencies are a highly volatile market, as evidenced by the figures we have seen so far, and this implies that one should treat them with extreme caution, without committing too much of one’s capital, or at least the percentage of one’s account that one is willing to lose up to 90-95% of one’s investment.

All in all, 2023 continues to recover from the strong drawdowns of 2022, but there is still a long way to go. So watch out for movements between now and early 2024, when we will see the halving of #bitcoin , which historically has been the start of all rallies seen in bitcoin (and other cryptos as well) since its inception.

Until next time!

Andrea Unger #crypto2023

$BTC

As #cryptocurrencies. become more mainstream, many beginners are still hesitant to jump in. However, the benefits of trading with cryptocurrencies are too big to ignore. Here are some tips to help you get started. First and foremost, it's important to understand the concept of blockchain technology and how it powers cryptocurrencies. Doing your own research will give you a better understanding of why cryptocurrencies are valuable and why prices fluctuate. Investment in cryptocurrencies involves risk, just like any other investment. Therefore, invest only what you can afford to lose. Start small with a budget you can afford and gradually build onto it as you gain more experience.

Next, research and compare different exchanges to find the one that suits your needs. Choose a platform that provides a comprehensive analysis of market trends and volumes. You should also opt for a platform with robust security features like two-factor authentication.

Last but not least, stay up to date with the news. Cryptocurrencies are now being embraced by a growing number of industries and governments. As a result, advancements in these areas can significantly impact the value of cryptocurrencies. In conclusion, trading with cryptocurrencies can be exciting, challenging, and lucrative. But it takes a willingness to learn, caution, and a disciplined approach to be successful. Cryptocurrency trading is not a get-rich-quick scheme, it's a long-term investment opportunity that requires patience and perseverance.#crypto2023

Research on #cryptocurrencies. reveals promising coins, including

#LINA and $DOGE

#XRP .

#Cardano

#Polkadot

LINA, currently at $0.0149 per unit, may retrace back to $1.00 and reach a new high of $10. It's worth considering for investment.

LINA may retrace to $1.00 and reach $10, while DOGE, with a $0.064 market price, may breach support before retracing upwards. Keep an eye on both coins.

Disclaimer:

Do you own research before investing. #NFA

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The #government and financial regulators are considering imposing higher restrictions, including a complete ban on private #cryptocurrencies.
The government will promote a central bank digital currency (CBDC) as an innovative and cost-effective payment solution but it may not put to rest the Reserve Bank of India’s concerns regarding private cryptocurrency, such as risks to macroeconomic stability, by allowing any private crypto asset as a legal tender, two officials said.
A synthesis paper of the International Monetary Fund and Financial Stability Board highlighted these risks to the G20 nations in September and proposed a minimum threshold for regulation, they said, requesting anonymity.
“The paper doesn’t stop any country from imposing higher restrictions, as stringent as a complete ban,” one of them said. “The government and financial sector regulators, including the Reserve Bank, are seized with the matter.”
Compared to a cryptocurrency, a CBDC is more eco-friendly as energy requirement of a digital currency depends on its underlying technological stack, the other person said. “CBDCs could be based on algorithm-driven processes as against energy-intensive mining of #crypto assets,” he said.
Underscoring the adverse impact of a cryptocurrency on the environment, he said that people mine to create a private cryptocurrency, but no such process is required for CBDC. Either a sovereign or a central bank can issue CBDCs by converting the bank’s existing balances to CBDC balances, he added.
The Reserve Bank has launched a digital rupee that would revolutionise the financial technology sector by creating new opportunities and lessening the burn in handling, printing and logistics management of cash. This is one more instrument to catalyse India’s fast emerging digital economy, he said.
A cryptocurrency is neither a commodity nor has any claim on commodities as they have no intrinsic value. “They are designed to bypass the established and regulated intermediation and control arrangements crucial for ensuring integrity and stability of monetary and financial ecosystem,” the first official said.
“Both #innovation and benefits of virtual money is provided by CBDCs, while ensuring consumer protection and avoiding any threat to social and economic consequences of private virtual currencies,” he said. Due to its inherently cryptic nature, crypto assets are being used for terror funding, money laundering and tax evasion.
Central bank governor Shaktikanta Das recently said a #cryptocurrency is a “serious threat to financial stability” for all countries, especially for emerging economies, which was recognised in the synthesis paper as well.
“Everybody understands and agrees that there are serious risks, and that risk has to be looked at and managed very carefully,” Das said at an event on October 31.
The issue of cryptocurrency has to be dealt with properly, he said. “I have only one question to believers of regulation to ask, how will you regulate it? Whom will you regulate and regulate what? Before you think of regulating it, let us first understand what is this cryptocurrency. Is it a financial product? Is it an asset? If it is an asset, what is the underlying? It is not a tangible thing. What is the definition of cryptocurrency? Till now, I have yet to see a credible definition of what a cryptocurrency is,” he said.
“I have yet to come across what you call any sort of credible explanation of the larger purpose that cryptocurrencies serve. The third point which comes to my mind, and which is very important, what cryptocurrencies will do for international transactions or domestic transactions, whatever you call it in the digital mode, which CBDCs cannot do. The fourth and final point is the basic question. It is a kind of a new currency system developing,” he said.
“Are governments and central banks across the world comfortable with private currency vis-à-vis a fiat currency, a currency issued by a central bank on behalf of the sovereign? These are the four fundamental issues which need to be first understood before we talk of any kind of regulation, and these are very well recognised by the IMF-FSB Synthesis Paper,” he added.
The leadership of the G20 has welcomed the synthesis paper because it is a good beginning to understand what the risks are and possible ways to deal with them. “We are not trying to stifle innovation. All innovation, which is in the overall public interest, must be supported and promoted. We are not against innovation, but innovation should serve a public purpose,” Das said.