In Buenos Aires, Argentina, Juan Cuattromo, President of Banco Provincia, spoke about the need to regulate cryptocurrencies. This was reported by El Economista on May 16.
According to this medium Cuattromo said the investment boom in cryptocurrencies and decentralized finance requires government regulation in Argentina. It believed that protecting the rights of those users who have less information in unfavorable scenarios is necessary. He also talked about the importance of preventing systemic risks from developing. However, he made it clear that this should not have any impact on innovation and that its development needs to be monitored.
Regarding cryptocurrencies, he said that they are products that very few people understand in their nature. and that “they operate in totally unregulated markets”.
“There is a whole universe in which there is a regulatory agenda that cannot be left out” he added.
On the other hand, he pointed out, “The risk of cryptocurrencies is what happens in bad scenarios, because that’s where we will turn to demand answers from the state, it’s what always happens.”
“Experience shows us that regulation plays a role in protecting rights and users in bad scenarios,” he said.
For the head of Banco Provincia, investing in crypto assets requires “a different pedagogy in sectors that have no knowledge of the products purchased”.
In this context, he said: “It is important that we assume the guardianship and protection of the rights of users of financial services. The state needs to have a regulatory agenda that doesn’t have to kill innovation, but to accompany and understand them, but to protect those who have less information and knowledge and are more exposed to an adverse scenario.
The bank’s president later added: One way is to put any company that wants to be a gateway into regulatory orbit. The danger is whether this company has a problem and creates a systemic problem because financial systems operate on a network and, if not properly internalized, can affect the whole.
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