Maltese Prime Minister Mentions Stablecoins As The Way to Move Ahead in the Space
Malta is one of the most important crypto and blockchain hubs in the world. The island has been attracting different companies and projects that required banking support and a clear regulatory environment to operate. In order to keep the country growing, the Maltese Prime Minister, Joseph Muscat, said that stablecoins are the way for cryptocurrencies on the island to move ahead.
The Chinese news site CNgold.org published a report in which it mentions that things are not going as expected in Malta. Joseph Muscat has always been supporting the space, but banks seem to be reluctant to offer the necessary support to cryptos. Additionally, Muscat mentioned that it might be a good idea for crypto businesses to shift towards stablecoins.
About it, he mentioned:
“We’re obviously not going to intervene in banking policies because they have to deal with issues such as correspondent banking and risk assessments. Our job as a government is to create this new market and not allow a vacuum to form within it.”
He has also mentioned that the government is working in order to create this new market. Furthermore, he said that new sectors, such as stablecoins, are being viewed as more secure for the space.
Muscat commented as well that when people come to Malta to do business, he recommends them to maintain their previous banking arrangements. The comments given by Muscat come a few days after MFSA chief executive Joseph Cuschieri that promised to take action against the conservative approach that banks were taking.
Cuschieri explained that banks need to participate in the development of the economy and in the fintech and cryptocurrency sector. He stated that he is not happy about the decisions that were taken by some companies on some fronts. Additionally, he noted that the next year they will address this challenge.
“Our banking strategy and policy review to be published next year will address this challenge in a holistic fashion and we will consult with all stakeholders before any decisions are taken,” he stated.
Malta has been working in order to welcome new companies and firms to the island. Additionally, it has been focused on building a strong ecosystem to be friendly towards these new technologies. This is why Malta is now known as the ‘blockchain or crypto island.’
Back in July 2018, the Maltese parliament took the decision to pass three bills and set a regulatory framework to increase innovation in the country. The decision was taken in order to attract important firms to the island. And indeed, two large cryptocurrency exchanges such as Binance and Bitbay.
Banking support for this revolution that the government is trying to drive will be a key factor for the future of the crypto space in the island.