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Alexei Muratov commented on the shutdown of crypto-instruments in China, which caused the collapse of Bitcoin rate

Today, the growing influence of the cryptocurrency on the world economy has become not just a frequent topic for discussion in Internet, but also a constant informational occasion for discussion in the media. Every day the cryptocurrency industry becomes more interesting and foreground for offline media - newspapers, magazines, radio, television channels.

It is difficult not to agree with the fact that the hottest topic of this week was an unexpected ban of crypto-instruments in China, which provoked a sharp drop in the rates of crypto-currencies (mainly working on PoW) and caused a flurry of panic among users around the world.

The above topic was broadcasted on the air of “RBC” Channel where Mr.Alexei Muratov - the founder of the crypto currency PRIZM and the chairman of the International Public Movement "Change the World Together" - commented on it.

 

 Background of the conflict situation around the crypto-exchange in China

First of all, large-scale discussions of the issue began with a number of messages from representatives of exchanges, who massively announced the projects to be terminated until the end of September. Thus, this region actually can disappear from the map of the world, the region where a quarter of all Bitcoins is being rotated.

According to a number of media reports (among them the Washington Post and Security News) a number of exchanges received a state order, including the following requirements:

1. All exchanges must submit a plan by September 20th, according to which the users' funds will be withdrawn.

2. Also, by the specified date, exchanges must have a bank account on which users' funds will be stored

3. Until 24:00 on September 15, exchanges must make statements in which the date of termination of trading will be indicated. Also from today, registration of new users should be stopped.

 

Comments by Mr. Alexei Muratov on air of “RBC”:

"The main problem of Bitcoin and all other crypto-currencies are stock speculators. And the fact that today Bitcoin’s rate has fallen to $ 3,000, but literally in the last three hours (with the news that the regulator extended the period of work of the crypto exchanges in China and they will not be closed), the price has grown by as much as $ 500.

Of course, this are all media injections - there will be information about the fact that cryptocurrencies are allowed, then that they are banned. Because of this, there will be fluctuations in the exchange rate, on which exchange speculators will win, and this cannot be avoided, today it is a minus of all crypto-currencies, they are very susceptible to these fluctuations. The market of crypto-currencies today resembles the Wild West, the period of the formation of the banking system in a period of chaos.

It is impossible to ban the usage of crypto-currencies, so as a result, in each country a law on legal turnover will be adopted. The state will regulate the turnover exactly on the platforms, where one can convert the crypto currency into Fiat - there are simply no other tools.

Banning Blockchain and crypto currency today is a big mistake. You can ban the Internet in a separate country, but if it exists around the world - the country will be plunged into a backlog in IT-technologies. The same thing is happening now with Blockchain technology and the crypto currency market. 

Blockhain is a technology. While there is no regulatory framework, where Bitcoin or other tokens are registered. Someone calls it shares, someone currencies, someone - tokens. When the regulatory framework becomes available, then other legislative acts will also be based on this.

Until the State starts to regulate the market of crypto-currencies you cannot say that it something bad, no one tried to avoid taxes. Blockhain is an open technology and a transparent tool. If you want, you can see the history of all transactions - not just any controlling body, but any participant can do it. You can see the whole story – from where these Bitcoins appeared in the wallet and where did they go further. This is the more transparent tool than today's banking system. 

It is necessary to pass a law. Today in Russia several teams are engaged in this - the Central Bank, the Ministry of Finance and the State Duma, in some ways their positions are different. Personally, I believe that this is a technological revolution and it is impossible to ignore it. 

Today Bitcoin is imperfect - very expensive transactions. If you want to pay with Bitcoin, let’s say, for a cup of coffee, then you will have to pay about $ 20 for the transaction, so that it is confirmed more or less quickly - and then, it will happen within 10 minutes (conditionally). 

In the crypto currency PRIZM, let’s say, you can do it. A large number of new crypto-currencies appear, technically more sophisticated. In the nearest future they will also become a payment method. Already today it is possible to connect new and more advanced crypto-currencies via API to online shops, trading platforms, ID, etc. 

What will be the law? Now there is a battle of teams. Personally, I'm in favor of a different approach. Today, all the crypto-currencies (including Bitcoin) become centrist as they develop, despite the decentralization, which is mentioned - be it Proof of Stake or Proof of Work. In process of development all cryptocurrencies become centrist. For example, if this is Proof of Work, then all the power is in the hands of mining pools - new coins are issued and pools can change the rules for all the participants. 

I believe that Russia's way is to study this technology and create its national crypto currency, which technically and conceptually will outperform the rest. Which will not be centrist, but will remain a decentralized tool. 

We have contacts with working groups, some of them listen to us. Now there are several teams in Russia - in some ways they have similar positions, somewhere they are fundamentally different. Let's see which one wins.

“In the end, we have a commander-in-chief - I think that he will make the right decision! ", - Mr. Alexei Muratov comments on the development in the industry.

  • September 18, 2017 8:32 PM MSK
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