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The Prime Minister of Malta, Joseph Muscat, stated that cryptocurrencies are “the inevitable future of money” because it is more transparent technology. He made this argument in front of the audience of the United Nations (UN), during his speech on September 27.

The Maltese head of government took advantage of his participation in the general debate of the 73rd UN General Assembly to refer to the potential of Distributed Ledger Technology (DLT) and cryptoassets to ensure a more transparent and equitable society.

Muscat believes that new technologies can solve problems that have troubled us for decades and prepare the world for the transition to a digital society. In his opinion, “those who are able to pair the digital economy with a new state, the digital state, will be better prepared for future tests” at the social level.

In his speech, the Prime Minister pointed out that Malta has decided to become a “blockchain island.” In this sense, he stated that they are the first jurisdiction in the world to create legislation for this new technology, which until now was in a “legal vacuum.”

He noted that:

“Blockchain makes cryptocurrencies the inevitable future of money, more transparent, as it helps filter good business from bad business. However, these distributed ledger technologies can do much more.”

Muscat listed some of the cases of use of DLT, such as health, where he could guarantee patients the real ownership of their medical records or verify that humanitarian aid reaches its destination. He also said this technology has the potential to ensure that no one is deprived of legitimate ownership because of compromised data and that corporations are more accountable to their shareholders.

He acknowledged that technological advances such as blockchain and cryptocurrencies could encounter “antagonistic” views. Muscat emphasized that this resistance to change is as “short-sighted” as that of those who “advocate that horse-drawn carriages not be replaced by automobiles.”

Disruptive Island

In early July, Malta became the first country to pass comprehensive legislation for cryptocurrencies and DLT with the enactment of three draft laws on the subject. The self-proclaimed “blockchain island” has this year become the headquarters of operations of large companies in the industry, such as the Binance and OKEx crypto exchange.

Another island country, like Bermuda, is also making progress in creating legislation favorable to investment in cryptoasset technology. In May, Bermuda launched a public consultation on its regulatory plan for transactions with cryptocurrencies, Initial Coin Offering (ICO) and Fintech businesses.