South Africa’s government is well aware of technological developments regarding virtual or crypto money and has already created an interministerial working group that monitors it in conjunction with private sector experts with a view to possible regulation.
It appears from written questions by adv. Anton Alberts, chairman of the FF Plus, to the Minister of Finance, Malusi Gigaba.
The questions asked, was what the government’s position regarding the developing market for crypto currencies, and whether the government intends to regulate the market?
The answer acknowledges that virtual money is currently unregulated and the public is warned to be aware of the risks associated with the use of virtual currencies for transactions or investments.
Adv. Alberts said it is important that there should be a balance between innovation and consumer and investor protection.
He said the phenomenon of financial technology is currently in its infancy and is currently being conducted by volatile developmental stages similar to the Internet in its initial phase, but in the end, it will probably start a stable phase of the successful virtual currencies next to national fiat currencies.
“There is also a lot of potential in the use of underlying blocking technology for purposes other than creating virtual money. Blocking technology is a cheap, efficient and increasingly secure way of doing transactions and transferring money from one person to another.”
“The FF Plus also takes note of the Orania initiative to convert its money into virtual money. The project will be a real test for using the local virtual money.”
“Virtual money and blocking technology has the ability to decentralise the financial sector globally and to eradicate or renounce ordinary banks and other financial institutions like us. The implications for governments are even greater because technology allows taxpayers to receive salaries and trade in currencies that are not traceable or visible within new virtual economic systems.”
“The implications for governments – in this case the ANC – are that there will soon be legitimate means of payment and economic ecosystems that will be beyond the control of SARS and that the vast wish of most taxpayers not to give a cent to the corrupt ANC, May be possible.”
“The investigation currently under way by the ANC government into the possible virtual money regulation may ultimately reveal powerless legislation because no law will be able to control the virtual system that is global and anonymous.”
Therefore, if the technology realizes the potential it is capable of, it will not only make banks unnecessary, but it may also cause governments to fall, “said Adv. Alberts.