Belarusian digital currency creator Denis Lavnikevich: “Cryptocurrency must be self-regulated”
The national cryptocurrency rate should be regulated by the market, and the market relations should not be regulated by the state, says the speaker of Blockchain & Bitcoin Conference Belarus, one of the creators of the first Belarusian cryptocurrency Thaler Denis Lavnikevich. We discussed the idea of introducing the national cryptocurrency into the economy of Belarus and regulation issues.
- Hello, Denis. The idea of creating a national cryptocurrency is not new. Countries that want to issue their own digital currencies consider rate issues differently. Some intend to link it to fiat money, others are going to let it float freely. In your opinion, what cryptocurrency rate should be in Belarus and why?
- The rate should be regulated exclusively by the market. Anyone who has studied economics and monetary theory understands that money is also a commodity, and its value is also determined by the market. A state regulation doesn’t end well, if you remember the USSR. In the end, there is such an expression: “Good money always replaces bad money”. And the cryptocurrency market is a great example.
- How do you interact with state structures on the introduction of Thaler into the Belarusian economy?
- We try to coordinate all our initiatives on Thaler integration with officials. We do not allow violations of laws by our partners. We submit our own proposals on changing legislation and cryptocurrency regulation to the authorities.
- Which existing cryptocurrency regulation could effectively blend in the Belarusian realities?
- I think none will fit. Cryptocurrency must initially be self-regulated. Any outside interference, including state intervention, is harmful. The blockchain technology and the first cryptocurrency bitcoin were created in 2009, following the crisis that demonstrated the untenability of the integrated banking system.
- How can the national cryptocurrency be beneficial for Belarus?
- The national cryptocurrency will allow creating an infrastructure focused on Belarusian needs and local business. The creators of the “global” cryptocurrency are unlikely to take into account Belarusian characteristics and the economic situation. And we consider.
- Why did you choose Litecoin as the basis for Thaler?
- It looked like the best option initially. After all, we had no experience in implementing such projects. But, as they say, you learn fast in the field. Less than two months after the launch of Thaler's system, we changed the algorithm used in Litecoin Scrypt to Lyra2z. It is improved and provide more opportunities to local miners.
- What was the most difficult when creating Thaler?
- Finding competent technical specialists. Because this is a new field for Belarusian IT experts as well. All participants of the project had to learn during the work.
Denis Lavnikevich will be the speaker at Blockchain & Bitcoin Conference Belarus on February 27. Register to get an opportunity to ask the Belarusian cryptocurrency creator your questions.