We met with Johana Faliero, professor of Electronic Commerce and Contracting at the Faculty of Law of the University of Palermo, to understand a little more about cryptocurrencies, bitcoin and all these new concepts that appear daily in our lives and that affect the economy. Of the countries.
Cryptocurrencies represent a global challenge on several levels, so knowing more about them is essential.
Why is there so much talk about bitcoins in the media? What is its relevance?
Bitcoin is one of the most popular cryptocurrencies of recent times. Its infrastructure incorporates technological advances essential in its development, such as cryptography and proof of work. This is an example of an alternative system of private monetary issuance without intermediation based on the consensus of its peers. In turn, it is a deflationary currency, so unlike traditionally issued currencies, it appreciates over time, and its supply is finite and predetermined.
What is the future of cryptocurrencies?
It is a promising future in every way. They have come to respond to the needs posed by society regarding the monetary issue. Although there are multiple challenges from the regulatory point of view and its good approach, the scenario is characterized by its permanent innovation. From the social point of view, it serves as a unique empowerment tool.
The future will lie in finding a uniform regulation at an international level that embraces its characteristics without suffocating them and allows the maximum degree of guarantees to its users, enhancing its multiple social and economic benefits.
Why did they appear in the world?
They appeared as a result of the combination of two inventions, the advanced cryptographic techniques and the proofs of work that allow their issuance, and as a response to a clear need that was embodied in the money market: that of an economic environment without intermediation by the authorities, where the consensual choice of its users determines the characteristics of the ecosystem itself.
Cryptocurrencies are an advanced electronic means of payment. In the same way that the expansion and mass use of the credit card system was not imagined at the time, the emergence of cryptocurrencies is at the banking, financial, commercial, business and civil levels, among other areas, an irreversible fact that our right must study and contemplate.
How do they coexist with the currencies of the countries?
They do it in different ways. In the vast majority of countries, privately issued currencies are not recognized as legal tender since they compete directly with legal tender currencies that national central banks issue. The monetary problem by these authorities is, in legal terms, an extension of the sovereignty of the State, and its matter, in principle, collides with these ideas of a traditional nature.
What is the legal situation of cryptocurrencies in Argentina?
In Argentina, they are not considered legal tender, without prejudice to which there are regulations related to the prevention of money laundering and financing of terrorism and their tax consideration.
What are the challenges involved in the appearance of this type of currency at a legal level?
The main challenge is to propose an adequate level of legal protection that, without leaving its users unprotected, optimizes their social, economic and financial functions.
Johana Faliero is the author of the book “Cryptocurrencies: the new regulatory frontier of computer law” edited by AdHoc, where she provides the necessary theoretical background for understanding the economic and legal phenomenon that represents the emergence of cryptocurrencies and develops the underlying legal ideas that are born problems related to its use. She is a Commerce and Electronic Contracting professor at the Faculty of Law of the University of Palermo.