Virtual coins are the future of money transmission systems because their underpinning technology, the blockchain, makes these financial instruments more transparent than traditional currencies, Malta’s Prime Minister Joseph Muscat said at the United Nations (UN) on Thursday.
Speaking during the 73rd Session of the UN General Assembly at New York, Muscat noted that the world is in exciting technological times as innovation like cryptocurrencies, the blockchain, and artificial intelligence (AI) offer endless opportunities.
“I passionately believe technology revolutionizes and improves systems. This is why in Malta, we have launched ourselves as the blockchain island. By being the first jurisdiction worldwide to regulate this new technology that previously existed in a legal vacuum. Blockchain makes cryptocurrencies inevitable future of money, more transparent since it helps filter good business from bad business,” Malta’s PM told attendees.
Blockchain, developed as a distributed ledger technology (DLT), can resolve some existing major global problems such as transparency deficiencies in various sectors, Muscat said. For example, DLT solutions can make corporations more accountable to their shareholders, and can bring back citizens’ confidence in state institutions by guaranteeing the proper handling of personal data. By implementing the new technologies in these ways, authorities will be able to counter “regressive and reactionary” political ideas, Muscat outlined.
“Blockchain can provide solutions to health care systems where patients have real ownership of their medical records. Emissions trading systems can be taken to the next level. We can help verify that humanitarian assistance is reaching its intended destination. We can make sure that nobody is deprived of their legitimate property because of compromised data,” Prime Minister said.
Malta has recently revealed three DLT and virtual coin laws with the aim to become “blockchain island,” a move that has prompted several of the largest cryptocurrency players like Binance and OKEx, to announce plans for operations in the country.
As part of the European Union (EU), the bloc’s policies towards cryptos are in force in Malta like the EU virtual coin CFD limit and several anti-money laundering (AML) provisions for crypto-to-fiat exchanges.