Sep 26, 2023

European Central Bank's president Christine Lagarde thinks a digital euro is at least two years away.

Video transcript

The state of crypto is presented by Tron connecting the world to the power of Cryptocurrency. European Central Bank President Christine Lagarde says that a digital Euro is probably about two years away. The central bank chief said she wants to address quote conspiracy theories about CBD CS and government snooping. Joining us now to discuss is the CEO of digital asset make market maker Krock. Welcome, Kevin. Thank you, Lawrence. Thank you for having me. Glad to have you on. So, uh back in July, you wrote a piece that it's time for a European, a euro stable coin. Uh uh we, we'll get to, to, to the, uh to, to the market about that. But in the meantime, what do you think of like arts uh comments regarding a CBD C from uh from the ECB? Well, I think that's, you know, compared to your introduction. So indeed, she said that it would be, you know, two years away until they actually start a trial and probably another two years, you know, after that to have proof of concept before anything comes to fruition, um I would tend to believe that it's actually a positive thing because I do have personally, you know, as a citizen concern about the concentration of power that would come, you know, with the, with the CD DC and the full traceability it offers. So of course, you would, you know, Christine Lagarde would label those concerns as conspiracy conspiracy theories, which I don't think is entirely warranted. So I think taking more time to understand what the implications of the CPD C actually will be, you know, for all market participants is actually it's actually a good thing. So for once, I'm quite happy that Europe is being slow on this. So uh in the meantime, you, you know, you say that that Europe needs to uh get up with the, the uh the uh stable coin game. If you will, uh we've seen, we've seen experiments with the Euros stable coin. Why have they failed? Well, I I think that there were multiple, multiple reasons why, why they failed, right. And so um maybe to take a step back on this, I do think that it would be very positive for, for us to have a digital Euro. My question is whether that, that Euro should be emitted by the European Central Bank, which is another matter entirely the reason why I think Euro going have not been so successful, you know, up until now, I think first, it was simply a question of where interest rates, you know, were uh up until, you know, last year and therefore whether it made sense to issue such a such a. So to start with, I think that the second was also a lack of, you know, a regulatory clarity on to, you know, what, how would uh issues of stable actually be, be traded treated in Europe and whether it would be a common framework to for them to work under, which is not the case with ma of course, you know, we, we know where the rates have been going as well. So I think that most of the the major hurdles that were there have now been lifted, which is why I do think that it is a great timing for uh for your stable going to emerge and to gain, to gain some momentum. So we, we saw a lot of issues with a AAA US stable coin, uh several U stable coins in the past, we saw uh you know, we discussed earlier with mark some of the, the failures, obviously with Terra Luna, which was, and again, it wasn't asset backed, it was theoretic, it was uh algorithmic. Uh But we've seen other questions about and, and let's be honest, let's let's say that there have been always questions surrounding tether and its backing and, and whether or not uh they were printing uh dollars, I I if you will or or at least using it backed by non dollar assets. Uh And that dollars never changed hands to create them, which has been an accusation of course they deny it. Um What kind of protections do you, you don't see the ECB getting involved in or you don't want the ECB to get involved in trying to protect against that? Do you, or, or do you think that the ECB would have a role in, in stable coin regulation? No, I think they definitely have a role. Uh What I was, you know, questioning initially is whether the Europe should rush into the emission of CBD CS, right? And I think that they shouldn't rush because there are very clear privacy concerns and concerns around concentration of power. But that being said, I think that, you know, it's very good to have multiple different potential issues of of a digital Euro. And I do think that very clearly these issues should be, you know, submitted to a clear regulatory framework, they should be very strict uh needs around transparency or about the ability to audit, you know, backing audits the practices so that, you know, the the the customers, the end user that actually make use of, of those digital staple coins can rest assured that, you know, what they are actually holding is actually backed, you know, by fiat currency, which is what they actually want to store valuable initiative. So I think that very clearly those those those issues should be um subject to uh to oversight and to controls. And I do think that having a clear regulatory framework around it makes complete sense. So uh key rock, you just received the Swiss regulatory clearance. Um And uh according to that's according to a statement from your company, which came out today, what does it mean for, for your company? What does it mean for, for a market maker like yourself? And how does it uh compared to what you're seeing going on in the US? So, I mean, we are, so we're, we're globally active, right? So today we trade on more than 85 85 exchanges we have from the get go. So we founded the company six years ago, from the start, we decided to be fully compliant in all jurisdiction that we are that we are active in. And so we receiving this regulatory approval in Switzerland is part of, you know, our continuous con effort to broaden our, our base to broaden our scope. And so the reason why we've, you know, chosen to make those efforts in Switzerland is because the rules are very clear. Um the rules are not, you know, specifically easy, there are not lacks, there is very clear controls, uh very clear frameworks, but at least there is clarity. And I think that, you know, for players such as ourselves, that's extremely important, we're very happy to abide by the strictness of the rule. But we also want to know that those rules are not going to change every six months. And that's, you know, we have a very clear guidance as to what we can and cannot, you know, develop in a specific jurisdiction. So this is what explains our focus on Switzerland and also explains why we are currently not active in the US because that clarity is very clearly not there. And you raised $72 million recently uh from the likes of ripple and, and uh so I assume you're spending it on, on all sorts of things, not all going to lawyers, correct? Definitely not. No. Ok. Well, thank you very much. That's Kevin. I, we appreciate having you on. That was the key rock, Ceo Kevin de pa. Ok. Thank you very much. Have a nice day. Thank you.

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