Greg Medcraft (Greg Medcraft), head of the Directorate for financial and enterprise Affairs Organization for economic cooperation and development (OECD), recently stated the need for «an international discussion on the issue of cryptocurrencies», and called the technology of the blockchain «new technological revolution».
During an interview at the G20 summit, the Brazilian edition Criptomoedas Fácil Medcraft noted that in the industry of cryptocurrency, there are several problems that need to be addressed. One of them refers to the initial placement of tokens (ICO), as there is no international regulation of this method of fundraising and the rules for investors. Because cryptocurrency is a global phenomenon, Medcraft argues that the necessary international cooperation to regulate the industry.
Director of the OECD highlighted the problems associated with money laundering. He also noted that it is necessary to pay attention to the protection of investors and customers, as fraudsters often fraudulently bilking people out of money, and the projects in industry often do not reveal even basic information about yourself.
On the blockchain
As for the blockchain, Medcraft said that he sees «new technological revolution» and its stunning features. He said
«I think the technology of distributed registry revolutionary. With its widespread use, it will be possible to create a cheap, quick and the best products for investors and consumers.»
According to him, the greatest economic benefit from this technology will get the government, financial service providers and global supply chains. For example, governments can use the blockchain to improve the voting system and in other directions. Director of the OECD noted that the technology has three key advantages: it provides a safe exchange of money, safe exchange of data and the best cybersecurity. The latter, in his opinion, has not been studied properly. He believes that technology will change the global economy.
According to Medcraft, the future is a hybrid of public and private blockchains, because the exchange values need to be tracked to prevent money laundering and the financing of terrorism. He noted, however, that anonymity should not be sacrificed to the track, but that «law enforcement agencies should be able to identify the source of funds.»
On the state cryptocurrency
In respect of public cryptocurrency Venezuela the Petro Medcraft noticed that in the future will be able to work different types of cryptocurrencies. Among them are crypto-currencies issued by Central banks. Central Bank will issue currency similar to Petro, which are secured by any asset.
The tokens provided by the state, may be promising depending on where the reserve is. Ideally, it would be possible to convert the token into an asset that supports it. According to him, cryptocurrency such as bitcoin and ether, unsecured and are only based on the «algorithm of supply and demand», which may lose popularity in the future.
About the scaling problem
In an interview with Medcraft also expressed his opinion about the technology of the Lightning Network. According to him, bitcoin brought to the world the possibility of implementing money transfers in real time, however, these transactions cannot be performed fast and cheap. Medcraft believes that bitcoin has issues with scaling, and that its production consumes too much power. One of the potential solutions to these problems can become Lightning Network, but its implementation would not resolve «the problems with lack of transparency» of the network.
However, he noted that Stellar, which recently announced
about the introduction of a Lightning Network, has a very big potential. He argues that the technology of this cryptocurrency may even surpass the speed of transaction Visa, and he carefully examines it. Medcraft concluded that it is very interesting to watch the development of the cryptocurrency industry and what he’s fascinated by the progress that has already reached the market.