As per June 17 interview with native news outlet The Malta Independent, the newly declared chairperson of the Malta Bankers Association stated that crypto currencies are “here to stay,” and it’s a banker’s dream. Due to its authentic and reliable transactions with complete security, authentic validation and untampered feature makes this technology unique and a new revolution in itself.
Cassar mentions in an interview that the banking industry has to keep up with the fast-changing digital world, making the comparison of the present environment to “rush-hour gridlock trapping a Formula 1 car.” He believes that blockchain is a wonderful innovation– it can be a total game-changer technology but it’ll take some time to extensively impact the global community immediately. He says “But going by our experience of technological innovation, a blockchain revolution of business and government could still be years away because many barriers would need to fall in the meantime. It has established its founding stone for our economic and social infrastructure.”
Further, he differentiates fiat currency and virtual currency payment system — “the currency is the ‘what’ while the payment technology is the ‘how’- marking that cryptocurrencies are the medium of exchange, while the payment system is a separate entity. He alludes to the questions on the grounds of defining cryptocurrencies and their regulation, considering that he appreciates them as no threat in “the short or medium term:”
Cassar expresses on the introduction of the crypto exchanges to Malta as being considered “blockchain island” and ushering of several large crypto exchanges to the country, including Binance, OKEx, and BitBay. But He also indicated that “this is an area of unknown and unprecedented compliance risk for our banks:”
“We need to be sure of what enhanced risk management and compliance capabilities the banks are putting in place because there are also other important linkages that need to be protected, among others our correspondent banking networks which still see these technologies as new and susceptible to the risk of criminal abuse.”