At the Blockchain Summit Latam 2023, Diego Herrera spoke about the current state of cryptoassets in Latin America and the Caribbean.
On October 4, the Blockchain Summit Latam 2023 began with the outstanding participation of Diego Herrera, a finance expert at the Inter-American Development Bank, who delved into the cryptoasset system.
Within the framework of Business Day, a special day of the Summit dedicated to strengthening alliances and strategies in the crypto world, Herrera, in collaboration with the University of Cambridge, presented a study that analyzes in depth the cryptoasset system in the region.
The research, carried out with Cambridge, addresses crucial topics such as financial inclusion and the custody of digital securities, highlighting the notable segmentation in America, with a special mention to Brazil for its market uniqueness.
Blockchain Summit Latam 2023: Crypto Asset Ecosystem in the Region
Diego Herrera emphasized the significant relevance of the cryptoasset ecosystem, noting that its detailed analysis reveals crucial information to understand its impact and potential.
On the other hand, FintechRegMap was presented, a detailed map that addresses the vertical regulations of cryptoassets in all countries in the region. Herrera highlighted that one of the main obstacles is the lack of understanding by regulators about these assets. On many occasions, he mentioned, they are not perceived as legitimate assets, which leads to a lack of interest in their adequate regulation.
Diego Herrera, after addressing the regulatory aspect, delved into the situation of the entrepreneurial and private sector. He highlighted an evident trend in the region: investment in crypto assets. This inclination, according to Herrera, is due to the fact that there are currently no other areas of significant interest in the industry for investors and users.
This outlook could reveal an early stage in the development of cryptoassets, which, over time, could evolve into a flourishing industry where more than 40% of trading volume is not limited to exchanges alone.
According to the research findings, most participants expressed their desire for clear regulations. Although some ecosystem advocates view regulation with skepticism, companies and entrepreneurs long for clarity in the rules of the game.
Public Policy Observations
To conclude, Herrera, based on the research, mentioned three key points of public policies, as well as reasons why regulating what he considers are key aspects for the development of the industry:
- Regulation of activities because of violations of consumer rights.
- Systemic risks.
- Violation of competition, concurrence and transparency.
For many, these factors only attract unwanted attention to the crypto asset system. However, for the healthy development and massification of services, it is necessary to avoid incidents, systemic risks and even more so, abuse by large market players.
Related News: Ethereum Colombia Community Present at Business Day
The Ethereum Colombia community was present during the BSL 2023 Business Day. Its representatives highlighted the fundamental points of this decentralized autonomous organization (DAO) and its future projections.
Those in charge of speaking about this DAO were Juan Carlos Bell and Jhon Tejada, both belonging to that community. The speakers reviewed the history of the organization, which dates back to 2020, but became official this year in 2023.
Likewise, they emphasized that they were part of the management of the Devcon 2022 event. They explain that it is a project that is booming and is just now taking giant steps in terms of growth.
By Audy Castaneda
