Our industry committee is studying blockchain and there’s no question that the technology has important value. But is that true for cryptocurrencies? What’s the real world value and how can we best protect retail investors from destructive speculation?
When I sat on the privacy committee in a past parliament, we studied the KSI blockchain used by Estonia to support its digital ID. The effort is said to have saved 2% of GDP a year. Centrally backed blockchain tech can create trust and unlock significant real world value.
What is the real world value of the thousands of decentralized cryptocurrencies? And whatever that value is (beyond the rampant speculation in the space), how does it compare to the huge risks we’ve seen for retail investors, with the collapse of Terra as one example.
It was shocking to hear that Terra was known in the community to be less legitimate when it was traded on ostensibly legitimate exchanges. A serious conversation is warranted to understand what additional regulations might be necessary to protect retail investors in this space.
Related: I voted for C-249 at 2nd reading bc I thought it was worth an in depth committee study due to the considerations above re the value of blockchain and risks of cryptocurrencies. That said, the bill needed major changes and I wouldn’t have voted for same language at 3rd.