The U.S. Securities and Exchange Commission (SEC) officially approved Bitcoin spot ETFs today, much to the anticipation of the public. Former Premier Chen Chun expressed his thoughts, stating that cryptocurrencies are like indestructible cockroaches, and the government should promptly establish the regulatory authority for digital assets (including NFTs) and strengthen the legal framework.
In the wake of this news, former Premier Chen Chun, who is also the Chairman of the New Generation Financial Foundation, wrote an article describing cryptocurrencies as invincible cockroaches that cannot be avoided. He urged the government of our country to swiftly establish the rule of law.
Chen Chun expressed his thoughts, stating that since the launch of cryptocurrencies in 2009, financial experts have always been skeptical and even disdainful. One of the most blunt comments came from the President of the Bank for International Settlements (BIS), who described Bitcoin as a combination of a bubble, a Ponzi scheme, and an environmental disaster. There have been numerous similar accusations, indicating the widespread criticism.
The article mentioned that recently, The Economist published a special edition for the year 2023, which included a short commentary titled “The Cockroach Theory.” Although it was less than a page long, it sparked heated discussions among global netizens because it directly targeted digital assets, particularly cryptocurrencies that have been prominent in the news in recent years. Coincidentally, issues with VASP were also reported after the Chinese New Year, causing much confusion.
However, Chen Chun stated that cryptocurrencies have remained active and resilient despite the fluctuations in their prices, from the time when one Bitcoin could only buy two pizzas in 2010 to the current price of $46,924 as of January 8th this year.
Promoting the establishment of a regulatory authority for digital assets
In Chen Chun’s view, the financial experts easily overlook the fact that the new generation, which has no role in the financial game dominated by the old generation, exacerbates the wealth gap. The digital assets of the digital era are an opportunity for the new generation to leverage their advantages. The psychological factor of class struggle arising from unequal wealth distribution should not be ignored by any country’s governing body.
Chen Chun stated that although a revolution may not occur, there will come a day when the new generation gradually takes over. If Bitcoin remains popular at that time, cryptocurrencies will not be ordinary cockroaches but superorganisms like those in the “Men in Black” movie!
The Economist believes that the popularity of cryptocurrencies stems from the speculation on the widespread future applications of new technology, which seems reasonable.
Chen Chun emphasized that whether cryptocurrencies are like cockroaches is not important. The SEC has already announced the approval of Bitcoin ETFs, and the rise of digital assets is inevitable. The urgent task for our country is to promptly establish the regulatory authority for digital assets (including NFTs) and strengthen its legal framework.
Previously, Chen Chun called for Taiwan to not solely rely on self-regulation by VASP (Virtual Asset Service Providers) for managing virtual currency platforms and trading businesses. Instead, virtual assets should enter the era of legal order; otherwise, it will be a disaster.
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Former Premier Chen Chun: Taiwan’s lack of virtual asset-specific laws will lead to major issues relying solely on VASP self-regulation!
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