Three recent events have occurred in the cryptocurrency market of which Dominican Republic must take several readings:
The first is the scandal generated by the sudden rise, at 1,300%, which in a matter of hours had the cryptocurrency $ Libra, driven by a message from the Argentine President Javier Milei that attracted some 40.00 investors, and then, in a matter of seconds, collapse. Although the president defends himself alleging that he spread the emergence of the crypto, he did not promote it. However, what happened reveals that the risk of scams in this market is high.
The second is what has happened in El Salvador, where to meet a requirement of the IMF that forced to mitigate the risks for the treasury of cryptoactives within the framework of a financing granted to that country of 1.4 billion dollars, Congress modified at the end of January the pioneer legislation approved in September 2021 on cryptocurrencies. With the modification they ceased to be official currencies and their use was relegated to exchanges between citizens and private companies, while their acceptance went from mandatory to voluntary.
After the signing of the agreement, the Government made purchases of Bitcoins that put in doubt the fulfillment of the agreed, although the Government tried to dispel them by stating that it had informed the international body that these purchases “are consistent” with the agreement. However, the fact still reveals regulation and control is not safe and approaches the Dubitative.
And the third is what just happened in the United States. The intention of President Donald Trump to convert his country into the capital of the cryptomendas has begun to take body in fact: he has just created, through an executive order, the strategic reserve of Bitcóin, and has said that it will be “as a virtual fortnx to house digital gold in the US treasury.”
It is appropriate to note that, unlike countries such as El Salvador, to which the IMF puts conditions in exchange for granting financing, the United States does not have those ties because by not receiving loans, its role is limited to supervising the US economy, it does not insist or impose rules or regulations.
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To this is added that, contrary to the outgoing president of the SEC, Gary Gensler, who before leaving office advocated intensifying his regulations on cryptoactive ones, the current president of the regulatory body, Mark Uyeda, has anticipated a greater containment in the regulatory activity of the agency he directs after the “excessively ambitious” years of the Biden era. “My way of seeing financial regulation is that we are not a motor boat,” he said.
Starting from the weight of the United States economy, the creation of that strategic reserve and the regulation of the cryptocurrency market to guide it to take advantage of the benefits of innovative technology and not only to defend against risks and threats, they predict that we are facing a market that came to grow and multiply.
Obviously, the country should not be just a spectator, it must regulate that market to protect investors of good faith, preventing regulation from being so weak that the crypto ecosystem turns into a “wild west” or that they are so excessively strong that innovation matches.
