In the current hype over blockchain and cryptocurrency, it’s becoming increasingly difficult to have a conversation with someone who understands not only the technology but also its impact on the society.
The blockchain revolution, or the so-called 4th Industrial Revolution, will drastically change the dynamic of how we communicate and conduct business; not to mention an increase in trust level towards service providers.
To fully understand the impact of this disruptive force on Malta, we’ve met with JP Fabri, the Managing Director of ARQ Economic & Business Intelligence. As a former member of the Prime Minister Lawrence Gonzi’s secretariat and an alumnus of the London School of Economics, he certainly has a vast experience in assessing the impact of new technologies on country’s economy.
An economist by profession and an authority in small states jurisdiction, JP Fabri strongly believes the hype is changing into something tangible. In our interview, he explained how the new blockchain regulations would increase Malta’s visibility on an international level, but at the same time, he highlighted the pressing concerns around the blockchain ecosystem.
Blockchain and DLT Are The Next Industrial Revolution
One of the most important highlights of the interview was JP Fabri’s recognition of blockchain and DLT already being a part of our reality – we don’t realise it.
While the majority is focused on cryptocurrency prices fluctuating, the technology is already doing its good. From making the financial services more efficient to reducing fraud in almost all aspects of our lives:
“This is already the reality. DLT is changing and is addressing challenges that have never been addressed before.”
Although we are witnessing blockchain being already adopted in some businesses and the change is undoubtedly leading to something positive long-term, we must be careful of how the entire ecosystem is managed.
Creating sustainable regulations that will also be flexible enough to adapt to the ever-changing technology is the key to ensuring businesses can utilise the technology in the best possible way.
Taking Malta as an example:
“From the regulation point of view, we’re there, but we need supporting ecosystem to fuel it.”
This statement can relate to multiple aspects – securing a robust financial system that allows technology to operate; updating the education system and curriculum for students to be more dynamic in their chosen disciplines; and finally, attracting the right talent to the island that is already struggling with finding enough professionals.
Read more about Malta Cryptocurrency and Blockchain Regulations.
Malta Has The Experience In Creating Regulations
As a small island, Malta positioned itself as one of the most established regulatory bodies worldwide. From asset registration to financial industry, iGaming and blockchain-based platforms. The jurisdictional innovation has always been securing Malta’s economy and allowed the country to specialise in niches that majority is sceptical of Blockchain and cryptocurrency regulations will likely repeat that success and pave the way for establishing laws for Artificial Intelligence and Internet of Things, creating the same a safe space for these operators to function.
“As a small island state characterised by inherent vulnerabilities, Malta has managed to carve its economic success on the basis of an economic vision based on the power of regulation.” – JP Fabri
JP Fabri welcomed the government’s decision on regulating blockchain-based based services and described it as a step in the right direction for Malta to nurture its regulatory framework.
ARQ Economic & Business Intelligence is a boutique advisory that applies economics, market research and data analytics to consumer behaviour, firms and governments.
Forming part of ARQ Group, a leading mid-tier professional services firm, the company support clients in Investment migration, tax, corporate, fiduciary, accounting, business advisory, regulated industries and AML & Compliance.