Gustavo Rivas, president of Basa Capital, maintains that the fall that cryptocurrencies are currently suffering, especially after the bankruptcy of FTX, is something that was seen coming. The lack of regulation and extreme volatility are some of what he considers to be the main risks.
In an interview with HOY/Nación Media, Rivas analyzed the situation of the world of cryptocurrencies and claims that the current crisis was something that many analysts had been talking about for quite some time, considering the alerts that were jumping.
“this was coming. The truth is that when you exceed beyond normal parameters what happened happens,” he said.
In addition to the volatility of cryptocurrencies itselfanother factor that adds is the formation of a bubble in price levelsGoing to a stage of market riskhe assured, emphasizing price fluctuations between crypto assets.
One of the main drawbacks, in his opinion, has to do with the lack of regulation by an entity. When you have an asset that does not have a backing or cannot be widely recognized Because of the market in general, this type of thing normally happens”.
About, argues that cryptocurrencies, like other types of legal circulation currencies, must be controlled and regulated by a central bank, despite the fact that they were originally conceived under another business model.
Rivas argues that a currency – whatever it may be – must circulate under a regulatory scopewith a regulatory framework Y conditions that give predictability for its operation, as is the case with the banknotes of each country.
In the event of the closure of the FTX platformthat was declared bankrupt a few days ago, had as a consequence that thousands of users who invested large sums of money in cryptocurrencies Now they are left with nothing. “The people who are suffering the losses have no one to cry toThat is the reality,” lamented Rivas.
In Paraguay, there is a significant number of people who decided to invest money in cryptocurrencies or in cryptoactive mining.and probably after this crash have serious financial problems.
“As the percentages of profitability were very high and spread by word of mouth, that made people get fully involved, without having knowledge of trading to understand the parameters to start dealing with virtual assets”, he stated.
Also read: Abdo vetoes the law on incentives for the production of cryptocurrencies
With respect to Bill that seeks to regulate crypto assets in Paraguaythe president of Basa Capital considers that The decision of the Executive to veto the project was correcteven more considering that the presentation had an economic interest but not a broad view of the real impact in the financial field.
In view of this, he believes that to establish regulations on cryptocurrencies in our country should be involved Central Bank of Paraguay (BCP) and the National Securities Commission as regulators of the local financial system.
“It is worth having a virtual currency, the market is evolvingbut always there must be a regulatory framework behind. Without having that to give security to the actors who are going to transact, that is where the problem begins ”, he declared.
