Malta Bankers' Association's newly appointed chairperson Marcel Cessar have stated while addressing newsmen stated that the blockchain technology is like the dream of every banker. He went further to state that the blockchain technology and cryptocurrencies, in general, are here to stay. In the course of addressing newsmen, Cessar stated that the traditional banking system should endeavor to keep up with the ever-evolving digital world, he even compared it to the rush hour gridlock that traps Formula 1 cars. Cessar further revealed that although the blockchain technology is one of the most innovative technologies of the 21st century and that it is a game changer as well as the dream of any banker, and this is because of the authentic, reliable and secure nature of the technology. He revealed that although all these mentioned above are true, that it the technology would and cannot be implemented right away, he stated that it would be a gradual adoption process.
Image Source : https://pixabay.com/
He stated that if we are to go by the experience of technological advancements and innovations, that the adoption and use of the blockchain technology to advance the financial industry, businesses and the government as well would still take time as many barriers that presently stand on its way would have to fall. Interestingly, Cessar is of the opinion that the blockchain technology is not a disruptive technology that it is a foundational technology that is capable of creating new and advanced platforms for social and economic infrastructures.
Cessar went further to differentiate between a payment technology and a currency. He noted that the payment technologies are the "how" while the currencies are the "what". He further revealed that payment systems or technologies are separate entities and that the cryptocurrencies are the means of payment. He went further to answer one of the unanswered questions sorrounding cryptocurrencies. He stated that he personally does not see cryptocurrencies as a threat to fiat currencies or even banks in short and medium terms. He said that the emergence and interest that has been shown in cryptocurrencies would challenge the traditional roles of banks as payment intermediaries and that if banks do not act properly they might become obsolete in the long run.
Although he thinks that cryptocurrencies are risky and have a strong connection to the fraudulent act of money laundering, he still believes that these cryptos are here to stay, adding that if the regulations of various countries are less strict, that some cryptos would definitely reap the first mover advantage.
The Malta island has been referred to as a "blockchain island" and this is because of its warm welcome to some of the world's largest exchanges like; BitBay, OKEx and Binance. The Malta island has been called "crypto trailblazer" and this is as a result of some of its crypto favorable tax laws and also the signing into law of three new crypto bills in April 2018.
This move by Malta is a welcome development.