Crypto

Cryptocurrency instead of gold according to Vitalik Buterin!

Ethereum (ETH) blockchain co-founder Vitalik Buterin shared on Twitter his views on the cryptocurrency ecosystem and decentralized finance (DeFi) regulation. According to him, various rules should not contradict the internal goals of cryptocurrencies.

Strict but important rules

A week after FTX CEO Sam Bankman-Fried’s tweet was criticized for possible decentralized finance (DeFi) regulation, now it’s Vitalik Buterin’s turn to join the discussion.

With his tweet, Vitalik Buterin joins the ranks of various cryptocurrency players: he wants clear and concise rules.

According to the founder of Ethereum, strict regulation is really important to help traditional financial institutions accept cryptocurrencies. It will also help stimulate the adoption of cryptocurrencies as assets.

However, Buterin disagrees with all current regulatory proposals because they make it difficult for the public to access cryptocurrencies. However, the founder of Ethereum prefers these legislative proposals to regulations that break the inner workings of the blockchain.

“Regulation that leaves the crypto space free for inner workings but makes it difficult for crypto projects to be available to the general public is far less bad than regulation that interferes with the inner workings of crypto. »

For him, an ideal law would allow the cryptocurrency industry to easily reach out to the public without affecting the functioning of the blockchain.

As such, the co-founder of the Ethereum (ETH) blockchain sought to highlight the institutional adoption of cryptocurrencies and the financial impact this could have on “what cryptocurrencies essentially are.”

Buterin criticizes gold in favor of cryptocurrencies

New York Times writer Zack Weinersmith suggested that people buy gold instead of bitcoin because it already fits in with the core spirit of cryptocurrency, which has no credibility and focuses on value.

In response, Vitalik sharply opposed gold, saying that it was very inconvenient to use it. This is even more true when a transaction is made with an unverified source or party, and storage options are limited because multiple people cannot access it, such as in the case of a multisig crypto wallet.

In his conclusion on the debate between gold and cryptocurrencies, he noted that because gold has a lower adoption rate than cryptocurrencies, cryptocurrencies are a smarter choice.

The crypto industry needs to be patient

The Ethereum (ETH) blockchain co-founder highlighted the institutional adoption of cryptocurrencies and the financial impact this could have on “the way cryptocurrencies operate inherently.”

“Another opinion of mine, perhaps controversial, is that I don’t think we should be enthusiastically chasing large institutional capital at full speed. In fact, I’m very happy that many ETFs are holding up. The ecosystem needs time to mature before it draws more attention to itself. »

According to Vitalik Buterin, it seems natural that centralized exchanges (CEXs) require their users to complete an identity verification (KYC) process before performing certain actions.

However, according to him, this does not have the slightest interest in decentralized finance, since hackers would not be bothered by the possible establishment of a rule.

Vitalik Buterin’s speech was well received by crypto industry figures (including Binance CEO Changpeng Zhao and crypto investor Ryan Sean Adam).

On his Twitter, Vitalik offered more than just his opinion on cryptocurrency regulation. He also made another very important conclusion: the crypto ecosystem needs time to mature.

The public will gradually accept this technology and this new market. The CEO of Ethereum does not consider the idea of ​​“KYC on the DeFi interface” to be relevant.

Finally, he added that regulation should be compatible with zero-knowledge proof, as this approach “offers many opportunities to achieve both regulatory policy and privacy goals.”

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