With all eyes of the financial world on Bitcoin and Blockchain this year, what should be the legal framework of the new technology entering the official fintech zone? Who will be responsible for any financial losses?
Cointelegraph spoke to key speakers John Jegutanis and George Papageorgiou at the 2nd Athens Summit - The Evolution of Commerce and the Digital Finance Forum 2016 about Blockchain and its contribution to the evolution of commerce.
Adoption of Blockchain and Bitcoin in Cyprus and Greece
John Jegutanis, Founder of Coinomi, caused a sensation with his speech at the 2nd Athens Summit - The Evolution of Commerce conference.
He gave a presentation about digital wallets and their principal codification (BIP32/BIP39/BIP44), since it is compatible with Coinomi and other wallets, after their analysis technology of transaction sequence where the chain created “blockchain”.
John Jegutanis: There was the risk of the public to lose interest if more delve into technical details, such as proof-of-work of Bitcoin. Although the Bitcoin and his blockchain has pulled the attention because of his continuity from 2009 and significant price increase against the traditional currencies.The questions I received focused on the important issue of the legal framework and what might happen if there will be a problem in the cryptocurrency software. In the end who will be responsible of any financial loss.
CT: The Greek government will inevitably attempt to pass parliamentary bills concerning the incorporation of digital payments systems. Can we expect similar bills for cryptocurrences?
JJ: Mostly the economic model of cryptocurrency works backwards from the traditional way. The user controls the private keys of the his wallet. This is a headache for the credibility of the banking system, because it is easy for the user to lose money through carelessness or malicious programs, so we conclude that we need more education for the ordinary user in cryptocurrency. If it is to legislate the issue of cryptocurrency, it will have to do with the identification information (Know Your Customer - KYC), which will involve the exchange and the companies that manage the conversion of cryptocurrency to traditional currencies and remittances to them. Simple wallets like Bitcoin Core, Coinomi, Mycelium, Trezor, and others where the user has 100% control of the private key will be very difficult to control.
CT: Would it be more wise to follow the example of Japan in the regulatory sector, or will we have to wait for the EU parliament in September to pass a bill for all EU members?
JJ: Surely there must be some future movement, but requires the separation of service, it depends where you will have the money as a user, even in the exchange, but again if you want to submit account freeze, will do perhaps only at the exchange not possible to happen in personal wallet of the mobile or the computer of each user.
CT: Do you think there is a real danger of account freezing of digital credit cards bearing the Visa or MasterCard brand?
JJ: Yes there is such a risk, but only for the part of the conversion of cryptocurrency to traditional currency, as happened in Cyprus and Greece, any cryptocurrency will not be lowered. This is the main reason that makes banks to worry, because in the long term will remain outside of the game, if all citizens understand the power and ease enables the use of digital currency. This is a road that will be followed by banks with the use of technology to create their own digital chain system (Blockchain). And we as a company want to have some connection to our digital wallet with credit or debit card of a Greek bank in the near future.
Digital revolution in Greece
George Papageorgiou, a Bitcoin expert and developer of the world's first university course on Decentralized Digital Currencies, by UNic, spoke about the digital changes in banks, insurance companies and the capital market in his presentation at Digital Finance Forum 2016.
George Papageorgiou: The Digital Finance Forum 2016 held on May 31 in Athens, proved once more the need for innovation and the opportunities that digitization can offer to incumbents. Unfortunately it became more apparent than ever, that these exact opportunities can swiftly change be commercial fulcrums for fintech startups that can create competitive advantages with less operational and regulatory costs, and more scalability.
Everyone may be watching, but not everyone in Greece appears capable to act in the same pace as the disruptors, which habitually come from abroad, with the exception of very few cases (here's looking at oSeven.io and CodeBurrow).
Even though every other speaker mentioned blockchain as a distant challenge in some capacity, they need to realize that this is not some Sci-Fi future, but it is actually changing the world as we speak, and in the increasingly globalized market, it is coming for them, whether they're ready or not.
The result usually is which the impact on society of Greece will have the digital revolution; if our country will be running last to incorporate these innovations could save not only the €1.4 billion per year as stated in the study of the Athens University of Economics in 2017, but multiples. This will have some benefit to the economy.
- George Papageorgiou