As part of the Blockchain Summit Global, the “Financial System and Blockchain” panel took place, in which experts analyzed the current situation and prospects in Latin America.
On the panel Participants: Fernando Arriola (Chairman for Blockchain, Paraguayan FinTech Chamber), Diego Amarillo (Head of Business Financial Crime Risk at HSBC), Javier Borkenztain (Co-Founder and CEO of Fiter, Financial Technologies Revolution) and Eloisa Cadenas (CEO of CryptoFintech). The moderator was Nicolás de Marco (Master in Blockchain, Smart Contracts Cryptoeconomy, MBA).
Nicolás de Marco started the conversation with a focus on possible future scenarios regarding the introduction of blockchain in the financial system, on payment platforms, etc. In this sense, stated that there are at least three situations to consider:
1) Blockchain to improve the infrastructure of banks and payment systems
2) Fintech and nontraditional actors joining and connecting with banks and payment systems to improve services.
3) Cryptocurrencies with a range of options, naming stablecoins, the prototype of the scale, digital currencies issued by central banks. And also cryptocurrencies with a larger leadership role.
How do you think the sector will develop?
Javier Borkenztain said it was necessary to see how it evolved and did an analysis of the technologies. “”Everything that is technology always ends with a previous stepHe commented.
“Blockchain and Bitcoin were not created from scratch. There was the internet and other systems. Things are created on layers. Interesting to see where we are going and what happened to the above. The internet has managed to transform industries like e-commerce, information, advertising, etc., ”he added.
In this sense he said: “Blockchain started on another level, several orders of magnitude later. The first killer app in this sense was Bitcoin, linked to money. And money is a state dominated industry. It’s not private, it’s public. One of its functions is to help people share talent and time. And this industry is worth 1000 times more than media, advertising and e-commerce”.
In addition, he explained that The possibilities are enormous because the market on which blockchain disrupts is gigantic. And he assured that a number of possibilities will arise from this.
Fernando Arriola from Paraguay pointed to fundamental problems facing Latin Americans. And he said blockchain would help with the anti-corruption vision. “In countries’ budget deficits, it is difficult to see where the money is going,” he said.
On the other hand, he also spoke about fintech and the regulatory framework: “It is not fintech that will help. There has to be a government opening. You have to let fintechs innovate. Fintech companies want to do it, but the state won’t let us because there aren’t any regulations that confirm our business itself. “
Regarding the crypto ecosystem, he said that the laws in Paraguay are relatively broad. but that there is ignorance about it. “There is an openness, but there are know-how problems,” he said.
Then, Diego Amarillo spoke of blockchain as something that clearly interests the traditional financial system. “H.There are different aspects from which advantages can be achieved with blockchain. For example, banks are one of the most regulated industries in the world. This leads to an impressive bureaucracy. This results in a service that we all complain about due to the slowness of the processes. One can imagine integrating smart contracts and simple rules to solve bureaucratic problems in a simpler and more agile way. “he pointed out.
Then he added, “You can’t replace people with smart contracts. The human factor is very important. Smart contracts can be a substitute in small cases. “
Regarding how cryptocurrencies can be integrated into the traditional system, he referred to the custody examples and also highlighted regulatory issues.
“You have to regulate, but not with excessive control, but with something so that everyone can coexist. Synergies need to be found to provide solutions between the traditional and the emerging system. Great progress is being made “
In addition, he noted: “You need to demystify this obscure view of bitcoin and cryptocurrencies as something that is used for money laundering.” And he noted, “What is used most for washing is the money from the traditional system.”
The final round was Eloisa Cadenas from Mexico, who spoke about financial inclusion.
“It is important that the concept of financial inclusion is very well defined. This means that people and businesses have access to useful and accessible financial products and services that meet their needs”He explained. Then he reiterated that there is a significant delay in Latin America.
He also said that Mexico may have some of the most expensive financial services in the world, creating an important void. ”
“”It is very important that institutions and governments do not recognize this factor just by providing technology. but also make suggestions. It’s not just a technological problem, it needs to be seen how governments and institutions create scalability, ”he said.
He also spoke about the regulatory environment and said that it is important, but should not diminish or dampen the spirit of innovation.
“We have to think about the extent to which empowerment creates better opportunities. We need a systemic and multidisciplinary approach. It takes a lot of education, ”he reflected.
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