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A new bill presented in Spain by the Popular Party (PP) aims to foster digital transformation by describing possible innovations, how they work, who has the right to develop them and the entities that should oversee and regulate these developments and activities.
The bill, however, is effectively bitcoin blind and instead focuses on blockchain and cryptocurrency – a misunderstanding of Satoshi Nakamoto’s true innovation that could prevent both the country and its people from a true flourishing. long-term.
A focus on cryptocurrency
For example, Article 48 of Chapter Seven sets out the intended guidelines for the use of “cryptocurrency” in the country. The bill would allow individuals to deal with it to meet private obligations, for example under private contracts. This would likely include bitcoin, however, so that’s a positive thing. The fact that people are contracting BTC promotes its use as a medium of exchange in Spain, legitimizing it for this purpose. But the bill explicitly states that such arrangements should not threaten the country’s current legal tender regulations – meaning bitcoin would not be as legitimized as in El Salvador, for example.
In addition, all bitcoin transactions would follow the same tax and tax rules as ordinary currency transactions in Spain. Throughout the bill, the enforcement of tax laws is emphasized as a primary objective, above all else. Therefore, it says bitcoin and cryptocurrency trading and custody providers in the country would be required to deploy extended know-your-customer (KYC) procedures to identify all of their customers. This aims to indirectly empower the Spanish public administration, which, according to the bill, will apply all measures in its power to control and monitor all business activities – often by requesting information from service providers.
In contrast, the bill states that citizens who transact with cryptocurrency for financial purposes will be assured of their rights to the data, as well as the power to request such information from service providers or the administration. public. However, it is not clear whether they could request the deletion of information. Yet given the nature of the bill and the regulatory tone in taxation and record keeping, one can assume that this would not be possible.
The “National Council of Crypto-Assets”, real estate and banking
Article 50 of the bill introduces the creation of an administrative entity for the cryptocurrency sector, the Consejo Nacional de Criptoactivos (CNC – National Cryptoassets Council). It would be made up of representatives of the General Directorate of the Treasury, the National Securities Market Commission and the Bank of Spain.
The main functions of the council would be to study and analyze the implications of the use of cryptocurrency in the country, assess whether blockchain technology would be useful for public services and establish mechanisms to detect and prevent fraud, terrorism and capital flight.
The bill further states that the real estate industry would be allowed to create its own cryptocurrency and use it in its investments in mortgage groups. Homeowners, on the other hand, would be able to pay off their mortgage with their own cryptocurrency. Additionally, the bill would allow banks to use blockchain technology to manage mortgage and insurance services and contracts on an exclusive basis. This is probably where PP exhibits the highest level of misunderstanding regarding Bitcoin and its true innovation.
Bitcoin, not Blockchain
Contrary to popular assumptions, blockchain technology is not the breakthrough innovation Satoshi Nakamoto brought to the world. Without bitcoin, the currency, the blockchain is rendered useless – especially if it is used on autonomous development systems by central authorities, as the Spanish bill often says. As Parker Lewis explains, innovation is Bitcoin, not blockchain.
“Ultimately, a blockchain is only useful in the application of money because it relies on a native currency for security,” Lewis wrote. “Bitcoin is the most secure blockchain by order of magnitude. Because all other blockchains compete for the same fundamental use case of money and because Bitcoin’s network effects only increase its advantage. security and liquidity in the field, no other digital currency can compete with bitcoin. Liquidity breeds liquidity and monetary systems tend to use a single medium as a derivative function. Bitcoin’s security and liquidity have made it all other cryptocurrencies obsolete before they leave the proverbial gates. “
It is Bitcoin’s Proof of Work (PoW) system, along with the immutable ledger, cryptography, and its unauthorized nature, that enables suspicious parties to reach an unstoppable and irrevocable consensus. In other ‘cryptocurrency’ and ‘blockchain’ systems, managed by a specific team of people in a proprietary manner, the ledger is often not set in stone and the parties must rely on a certain level of trust. to each other.
These systems are ultimately doomed to failure because, like the Spanish bill, they confuse bitcoin and blockchain. This is not surprising, however, as governments tend to seek control. Spain, in particular, has shown some totalitarian inclinations with a recent bill that would allow the government to seize private property in “times of crisis”. It wouldn’t be hard to imagine the same being accomplished in fragile proprietary systems that seek to mimic bitcoin.
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Sources 2/ https://bitcoinmagazine.com/business/spanish-bill-bitcoin-blind The mention sources can contact us to remove/changing this article |
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