AI News, Bitcoin Hover Over $11,800 as Top Cryptos See Gains
Bridging the Gap Between Bitcoin and Global Regulators
Since 2015, when bitcoin became an issue for regulators like the state of New York, the regulation of cryptocurrency (the G20 now calls it as a crypto asset) has been discussed in many places, mainly at bodies like the Financial Stability Board (FSB) and the Financial Action Task Force (FATF).
Yet, throughout the history of crypto asset and blockchain, regulators have been considered an enemy, even as most governments have sought new financial innovations based on the blockchain.
On June 8 and 9 of this year, the G20’s financial ministers and central bank governors met in Fukuoka, Japan, bringing together a group of 20 governments that discuss issues related to economics.
This report emphasized the importance of multi-stakeholder discussions, and that regulations and laws are not an 100 percent perfect tool for forming a healthy ecosystem.
This was indeed the genesis block of discussions by different stakeholders, including Klas Knott, the vice-chair of FSB, Brad Karr, managing director of IIF (a world group of established banks), Adam Back, the famous cryptographer, Shinichiro Matsuo (myself) who represents neutral academia views, and Jun Murai (moderator), the famous “Internet Samurai” who developed the first-ever inter-university internet communications network in Japan.
Knott firstly explained the FSB report and the views of his fellow regulators, including their regulatory goals. Karr went on to discuss many potential applications of decentralized finance, including financial inclusion.
“We welcome the FSB report on decentralized financial technologies, and the possible implications for financial stability, regulation and governance, and how regulators can enhance the dialogue with a wider group of stakeholders.”
A similar situation will happen in finance, and this is the reason why the FSB and G20 are working toward the communique, through the involvement of multi-stakeholders might imply reducing their power of governance.
Here, stakeholders include open-source developers, regulators, business entities, consumers and academia, who are all seeking to solve the current chaos in terms of regulation and innovation in finance.
group of universities (currently 31 universities from 14 countries) called BSafe.network has started a new initiative to facilitate multi-stakeholder discussions based on its global neutrality.
Bankers, government officials, and regulators all over the world are feeling increasingly alarmed by the disruptive capabilities of Bitcoin, cryptocurrencies and blockchain technology.
Monero and Zcash Conferences Showcase Their Differences (And Links)
Last weekend, two privacy coin conferences heralded the future of cryptocurrency governance: the hybrid startup model versus grassroots experimentation.
Zcon1 had a gala dinner with a seaside backdrop and programming that displayed close relations between companies like Facebook and the zcash-centric startup Electronic Coin Company (ECC), as evidenced by Libra being widely discussed with team members in attendance.
“There’s been perhaps not enough discussion about the potential conflicts of interest in the [zcash] governance model.” While the simultaneous monero conference was much smaller and slightly more focused on code than governance, there was significant overlap.
Meanwhile, the zcash setup gave the founders data often called “toxic waste,” because the founding participants could theoretically exploit the software that determines what makes a zcash transaction valid.
In short, zcash fans prefer the hybrid startup model for these experiments and monero fans prefer a completely grassroots model as they tinker with ring signatures and research trustless zk-SNARK replacements.
“One of the written or unwritten rules of monero is you shouldn’t have to trust someone.” Shapiro added: “If certain people are dictating large aspects of the direction of the cryptocurrency project then it raises the question: What is the difference between that and fiat money?” Stepping back, the long-standing beef between monero and zcash fans is the Biggie vs.
Wilcox told CoinDesk the zcash ecosystem will continue to move toward “more decentralization, but not too far and not too fast.” After all, this hybrid structure enabled funding for fast growth compared to other blockchains, including the incumbent monero.
“Things like education, promoting adoption worldwide, talking with regulators, that’s the stuff that I think a certain amount of centralization and decentralization are both right.” Some fans of both projects see the benefits of that collective approach.
He added: “Ultimately, I would prefer if protocol evolution was mostly funded by the consent of token holders rather than by investors.” Researchers on all sides acknowledged their favorite crypto would require significant updates in order to deserve the title “privacy coin.” Perhaps the joint conference panel, and Zcash Foundation grants for independent research, could inspire such cooperation across party lines.