Regulation
“Bitcoin must be regulated in Brazil to be the digital gold of the iGaming sector”
GMB – How will the iGaming market look from a cryptocurrency perspective, given that there have been various guidelines and regulations regarding payment methods?
Fabio Tiberia – Cryptocurrencies are regulated around the world, including the United States and several Eastern countries. They are not yet regulated in Brazil, but in the near future cryptocurrencies will become the new currency and a form of transaction on sports betting sites.
Until then, what will the platforms currently offering crypto betting do? Should they stop offering it?
With the new regulation yes. The government has adopted a cautious strategy because cryptocurrencies are new currencies and need to be tracked and controlled. The government is studying the protocols that will be applied in the future. The new houses, without a license, will not be able to operate with cryptocurrencies when they are ready to operate.
Is this for now? Will this change in the future and will Brazil regulate the world of cryptocurrencies?
Exactly. Brazil is today one of the least banked countries. There are approximately 45 million people without a bank account. Therefore, with cryptocurrencies there will be a democratization of the financial system. This has already happened in several countries such as Nigeria and South Africa, where people use blockchain, Bitcoin and stablecoin protocols for financial transactions.
People ask: If I don’t have a bank account, how will I get a crypto account?
Because it is a decentralized system and control does not rest with a bank. Today, our financial system is centralized with one entity that determines whether you are eligible for a bank account. With cryptocurrencies it is possible to work with real money. The Brazilian system is sometimes cruel, with high interest rates for debts, in case of difficulty of the account holder, the bank will close your account. With cryptocurrencies this does not happen because it is a protocol focused on real money.
In the future, betting houses will be able to offer crypto betting, but where will these cryptocurrencies be? Will the user have an app where they will be stored?
Right. The concept is this. The money will be under the direct control of the user, without intermediaries, in a digital wallet, in a very simple way. It is similar to the Brazilian Pix, only in the concept of custody, which is not about a bank, but about me.
What is the future of Bitcoin, the best-known cryptocurrency in the world?
Bitcoin is considered digital gold and has shown significant growth, providing a form of transaction that is not dependent on intermediaries such as banks. In 2018 I predicted it would increase by 1,500%. Its price was $3,000 and today it is worth almost $70,000. It has grown a lot because it is a deflationary currency. Banks continue to print money, which is just paper, and loses value with inflation. Bitcoin does not suffer from this.
Will it continue to rise?
My prediction is that in three or four years it will reach $300,000 or $400,000. And it is not just my prediction, but that of many scholars. Bitcoin has recently been regulated in the United States, and individuals can conduct transactions and business operations with Bitcoin and other cryptocurrencies, with financial institutions increasing its acceptance and usage globally.
Source: GMB exclusive