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Without rules Bitcoin will only do damage. The (new) Savona alarm

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In a lectio magistralis at the University of Cagliari, the president of Consob returns to ask for certain and immediate rules on cryptoassets. The risk to be avoided is financial and monetary instability

It is not the first time that Paolo Savona, president of Consob, goes to the Bitcoin attack. Already on the occasion of the annual report to the market, last June, he had clarified the point of view of the Stock Exchange Commission: on cryptocurrencies you need rules, now and now. And today Savona has returned to thunder, hoping for the introduction of a serious and vertical regulation. States and authorities must make an effort to be able to integrate digital currencies into their institutional and regulatory framework, overcoming “the inadequacy of their knowledge”, warned the number one of Consob in a lectio magistralis at the University of Cagliari. Only in this way will it be possible to avoid “the guidance from the market, which would act ignoring the history of its failures and would risk generating imbalances that the man in the street will suffer”.

Savona in his speech recalled that, according to some calculations, there are today about six thousand cryptocurrencies in circulation, with a volume of transactions in the order of 2.200 trillion dollars equivalent. An impetuous growth, fueled by the attraction exercised on investors by the earnings recorded by Bitcoins, which has increased the concerns of the authorities about the systemic effects of cryptocurrencies.

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A situation “which urges the government authorities and those controlling the market to urgently equip themselves with new knowledge and tools to carry out their tasks, as well as to share them among all the institutions”. In short, according to Savona, it is time to raise awareness that an enormous dispute has been opened between large interests at stake that have already matured, “whose solution would require far-sightedness and a common will on the part of the owners of capital, labor and public institutions. Perhaps there is a lack of economists and legislators at the level of those who, in the course of the twentieth century, were able to transmit the results of their intuitions to politics ”.

Savona, on the day in which El Salvador, the first state in the world to have legal tender for Bitcoin, returned to hope for an international monetary conference of the type held in Bretton Woods, also focused on the future of banks. Fears in this regard are delaying the choices of public authorities. However, they are motivated fears. If the central banks recover the monopoly of crypto monetary creation, creating the Central Bank Digital Currenc (Cbdc), for Savona “the greater monetary instability could be solved, but an adaptation problem would arise for the institutions themselves, which” should devote themselves only to savings management by collecting it in appropriate forms “.

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