Class Is in Session: Fabian Schär Schools Us on Crypto Regulation and Moving From “The Old Ways”

Fabian Schar Intro – 0:00:10

Fabian Schär is Professor for Distributed Ledger Technology and Fintech at the University of Basel. He has a PhD in crypto, co-authored the bestselling book “Bitcoin, Blockchain and Cryptoassets”, published by MIT Press, and has published many academic papers, including one on DeFi on the St Louis Federal Reserve Review. He is an encyclopedia of blockchain based information and a forward thinking voice amid academics and regulatos. So what’s Fabian’s journey been like?

• Professor for Distributed Ledger Technology and Fintech at the University of Basel.
• Co-Authored “Bitcoin, Blockchain and Cryptoassets”
• Multiple published papers including the St Louis Federal Reserve Review.

13:45 Policy makers and regulators around the world are making moves into crypto. It is a delicate high wire act we are walking when looking at CBDC’s and government interference. But what does it all mean? Are governments about to launch blockchain based currencies, without available alternatives? How does Fabian feel when looking at this potential future?

• Policy makers and regulators have entered the world of crypto.
• Introduction of CBDC’s and governmental interference are cause for concern.
• What is this future? Blockchain based government currencies without alternatives?

36:48 One of the fundamental goals of any regulator is to stop money laundering, and a public blockchain is completely transparent and immutable. And yet we still see regulators using and trying to fit the “old” ways to control this, KYC AML being a prime example. But is this the best way? Does fabian think regulators are walking down the wrong path?

• Regulators strive to derail money laundering.
• Public blockchains can accommodate this, being transparent and immutable.
• Regulators still utilize the “older” models such as KYC AML
• Are they walking the wrong path?

49:41 One of Fabian’s latest papers discusses a creeping complexity within the space of wrapping and re-wrapping of tokens on chain. In 2019 the only players were Maker, Ave and Compound and it has grown beyond belief into a huge complex area of innovation. But does that innovation mean imminent risks? And what overall effect does it have on the market?

• Wrapping and re-wrapping of tokens on chain is growing in complexity.
• In 2019, there were only 3 major players
• This has rapidly grown into a complex area for innovation
• Does that innovation open the gates to high risk?