“Satoshi Nakamoto’s true intentions are still unknown, but we believe we understand his intentions regarding decentralization,” the expert says.

Within the framework of the Latam Blockchain Summit, Jack Garzon, CEO of Street Group, presented a Comprehensive analysis of central bank cryptocurrencies (CBDC), a topic of great importance in today’s industry. Garzón began by addressing the origin of Blockchain technology and its evolution over time.

Garzón contextualizes the creation of Blockchain technology, which was originally designed to decentralize operations and create decentralized digital money. but, It was stated that the true intentions of its creator Satoshi Nakamoto remain unknown, giving rise to various theories..

In this regard, he pointed out that: “Blockchain technology was literally created for a purpose, or at least that is what we believe, because in the end we do not know who Satoshi Nakamoto is, and we do not know who is the creator behind Bitcoin.” . But we think we understand his intentions about decentralization, we think he wanted to create a movement, we think we understand he wanted to create digital money, we think he wanted to create decentralized money, but in reality we don’t know, We do not know who he is or what his intention was.“.

He also pointed out that: “Satoshi, literally a genius, created a technological advance that governments today, 14 years after seeing it from the sidewalk in front of him, have decided on how to take advantage of this technology and benefit from its bounties.” But it is clear that not everything is in favor of governments.”

Central Bank Cryptocurrencies (CBDC), Opportunities and Challenges

By focusing on the analysis of central bank digital currencies, Garzon highlighted their importance Potential advantages such as instant payments and lower commissions, as well as a reduction in illicit activities due to traceability.

however, He warned of the possibility of full traceability and programming of funds, aspects that raise concerns about privacy and government control. Jacques Garzon analyzed the opportunities these books provide, as well as the challenges they pose to the future of the global financial system.

Opportunities

Garzón highlighted several opportunities that digital currencies could offer to central banks:

• Instant payments and accessibility: “Central bank digital currencies (CBDCs) allow for instant payments that can be accessed 24/7. You will not have to wait several days to make a bank transferHe stated that this speed in transactions could transform efficiency in the movement of funds.
• Lower commissions and less criminal activity: With full traceability, central bank digital currencies can reduce cash-related criminal activity. “Less cash means fewer opportunities for illicit activitiesGarzon confirmed.
• Competence in the digital economy: Central bank digital currencies can be easily adapted to the existing digital ecosystem, facilitating the transition to a more digital economy.

Challenges

However, Garzón also highlighted several critical challenges associated with implementing CBDCs:

• Loss of financial privacy: The implementation of central bank digital currencies (CBDC) involves a higher level of tracking and control by authorities. “Full traceability and programmable funds can put financial privacy at risk“to caution.
• Dependence on government: “Depending on your governor and the country you are located in, your access and use of central bank digital currencies (CBDCs) may be limited.“This raises questions about financial independence,” Garzón highlighted.
• Possibility of centralization and monopoly: If not handled properly, Central Bank Digital Currency (CBDC) will be implemented. It can lead to the centralization of the financial system in the hands of dominant governments or financial institutionsThis contradicts the principle of decentralization in Bitcoin.
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Emerging regulations and evolving standards

Jack Garzon has done an in-depth analysis of the evolution of regulations and standards in the world of cryptocurrencies and CBDCs. This aspect is necessary to understand the future of these technologies and their integration into the global financial system.

In this regard, Garzón highlighted at the conference that regulations are constantly changing and adapting. “It is important to understand that the regulatory environment is evolving rapidly, and that the rules of the game can change at any time“This dynamic requires market players to stay informed and adjust their strategies accordingly,” he warned.

In the same way, he spoke about the role of governments, and in this regard he noted that: “Governments play an essential role in determining regulations for cryptocurrencies and central bank digital currenciesHe explained that governments seek to achieve a balance between innovation and technological development while protecting investors and financial stability.

He also pointed out ISO 20022 standard and its impact on the industry. Garzon noted that the ISO 20022 standard is a key element in the evolution of systems. “This standard is essential for interoperability and coordination in the global financial ecosystemHe stressed that widespread adoption of this standard has the potential to facilitate the effective integration of central bank digital currencies into the traditional financial system.

Challenges on the horizon

In addition, the speaker noted upcoming challenges related to regulations, including:

1. Lack of global uniformity: “Lack of uniformity in global regulations can complicate cross-border operations“, noted Garzón. International coordination and standardization are crucial to facilitating the creation of a more efficient global financial ecosystem.

2. Definition of categories: “Clearly defining the categories of digital assets and CBDCs is essential for implementing appropriate regulationsHe cautioned that creating precise classifications would help avoid misunderstandings and ensure a coherent regulatory framework.

Future prospects

Garzon stressed this The future of regulations and standards for cryptocurrencies and central bank digital currencies will depend on how governments, financial institutions and the global community collaborate: “AndWe expect to see a greater focus on regulatory harmonization and widespread adoption of standards to facilitate the effective integration of these technologies into the global financial system.“.

Jack Garzon too He emphasized the scarcity and finiteness of Bitcoin as its most valuable attribute in a world where fiat currencies are increasingly being issued. He explained that although Bitcoin can be a means of payment, Its true value lies in its function as a digital asset similar to gold, providing stability and protecting value amidst uncontrolled inflation and the shift towards a new global financial system based on blockchain technology..

He also added that: “Central bank digital currencies are a reality whether we like it or not, even in some countries they are at a fairly advanced stage“, so consider it Even when there is opposition from the cryptocurrency community, governments will do everything in their power to make CBDCs an inevitable reality.

The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information provided here should not be considered as financial advice or investment recommendation. All investments and business transactions involve risks and it is every person’s responsibility to conduct due research before making an investment decision.

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