How and why the CONSOB of Savona beats on cryptocurrencies
Redazione Start Magazine
It’s not just cryptocurrencies. What has said the president of the Consob, Paolo Savona, in its speech for the traditional annual Encounter with the financial market
The speculation on cryptocurrency is now similar to that on subprime mortgages in 2008. To stem it requires international regulation.
It has asserted the president of the Consob Paolo Savona in the speech anniversary to the market.
According to the Commission’s report on the stock exchange and listed companies, the saving capacity of Italian households during the pandemic increased by 50%, but the return was close to zero. Moreover, said Savona, security “remains the uncovered flank” of the new digital finance and “it is therefore reasonable to consider cybersecurity a public good”.
All details on the speech of the Chairman of CONSOB for the annual meeting with the financial market.
CONTINUOUS MONITORING OF BORSA ITALIANA IN EURONEXT
CONSOB will continuously monitor the impact of the entry of Borsa spa into the Euronext group. It has emphasized president Savona indicating the activities of the commission in these first months of the year.” Was released the non-objection for the transfer of the Borsa Italiana Group from the London Stock Exchange Group to the Euronext Group, which will be followed by the continuous monitoring of Consob on the operational impacts of the operation in implementation of the Integration Plan and the Industrial Plan on a federal basis provided for by the partnership agreement”.
EXPORT AND SAVINGS AGAINST THE CRISIS
Italy has borne the burden of the crisis thanks to exports and savings and in these first months of 2021 “shows its will to face the unresolved problems, also making use of the change in attitude of fiscal policy of the European Union”.
IMPORTANT OCCASION FOR TAX REFORM
According to Paolo Savona, president of Consob and economist, “In order to continue the phase of relaunching productive activity, however, it is necessary to supplement the decisions taken so far to encourage venture capital by companies in order to improve their leverage and make them more willing to take new initiatives. It offers an important opportunity the tax reform urged for a long time and reiterated in the framework of the National Plan of Recovery and Resilience in implementation of the NGEU, if it is assigned to it the task of considering the productive instances on the same level as the ethical ones in the assessments of the distributive equity”.
NEW RULES FOR CRYPTOCURRENCIES
Cryptocurrency has become a threat to the protection of savings and it is urgent to address them with new rules. The president of the Consob Paolo Savona in the speech anniversary to the market launches the alarm but offers also the solution: to change the institutional architecture, made of norms and agencies, today to garrison the protection of the economy. Savona speaks of the “river now full of virtual tools” with the Internet that estimates from 4 to 5 thousand cryptocurrency in circulation and “If they are subject to the experience gained in a short time by CONSOB in obscuring in Italy hundreds of websites that illegally collected savings, the picture that results is worrying”.
PROBLEM OF BLOCKCHAIN OPACITY
The problem arises from the opacity of the technology that assists cryptocurrencies, the blockchain or decentralized accounting chain, which is impenetrable to the supervisory authorities.
OPEN CONSULTATION BETWEEN GOVERNING BODIES AND INDEPENDENT AUTHORITIES
Savona therefore proposes to intervene in Italy with “structures of formal consultation between organs of Government and independent authorities” to give a unitary direction to the choices in matter”.
Financial informatics is a prodigious lamp from which the Genius came out. The authorities will not be able to bring it back, because it acts in the immaterial sphere (or infosphere) controllable only by changing the protocol of information exchange”.
TO PREVENT MARKET CRISES
Finally, the president of CONSOB warns that “if the regulation were to confine itself to putting sand in the mechanism and, as widely discussed, to appear in taxing the gains obtained, the consequence could be the continuation of their spread that could lead to a new market crisis”. This is why we must not waste time and “impose the convergence of wills, overcoming fears and hesitations, towards an operational solution that does not suffer from too many compromises. Investors’ warnings about the risks they face when operating in cryptocurrency are no longer enough. The time for reflection is now over and we must move on to choices”.