The U.S. Securities and Exchange Commission (SEC) officially approved Bitcoin spot ETFs today, meeting the expectations of the public. Former Premier Chen Chun expressed his thoughts and urged the government of Taiwan to promptly establish a regulatory authority for digital assets (including NFTs) and strengthen the legal framework, comparing cryptocurrencies to indestructible cockroaches.
Former Premier Chen Chun stated that since the launch of cryptocurrencies in 2009, they have been viewed unfavorably by financial experts and even faced criticism. One of the most explicit comments came from the President of the Bank for International Settlements (BIS), who referred to Bitcoin as a combination of a bubble, a Ponzi scheme, and an environmental disaster. Similar accusations have been abundant. Recently, The Economist published a special issue on the closure of 2023, which included a short comment titled “The Cockroach Theory.” Although it was just a page long, it sparked a global discussion due to its ambiguous stance towards digital assets, especially cryptocurrencies that have been prominent in the news and recently faced issues with VASP.
Chen Chun mentioned that despite the price volatility, with Bitcoin’s price reaching $46,924 as of January 8th this year, it has remained active and resilient. He emphasized the need for the establishment of a regulatory authority for digital assets, as financial experts often overlook the role of the new generation in the financial game dominated by the old generation. The wealth gap is widening, and digital assets in the digital era provide an opportunity for the new generation to turn the tables. This psychological aspect of class struggle arising from unequal wealth distribution should not be ignored by any governing body.
Chen Chun suggested that although a revolution might not happen, the new generation will gradually take over. If cryptocurrencies like Bitcoin remain popular, they will not be ordinary cockroaches but superorganisms like those depicted in the Men in Black movie. The Economist believes that the popularity of cryptocurrencies is a bet on the widespread future application of new technologies, which seems reasonable.
Chen Chun concluded by emphasizing the importance of promptly determining the regulatory authority for digital assets (including NFTs) and establishing a robust legal framework. He previously called for Taiwan to not solely rely on self-regulation by VASP (Virtual Asset Service Providers) but to bring virtual assets into the era of legal order; otherwise, it will eventually lead to a disaster.
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