«Nobody Has A Clue»
His comments exemplify the jubilant mood at the first Swiss conference devoted to digital currencies. The confab in the sumptuous Suvretta House (lobby pictured below) precedes the better-known World Economic Forum in neighboring Davos, which is bracing for the arrival of U.S. President Donald Trump next Thursday.
Many attendees, like Masters, will take in both events. Some, like FBG Capital’s Richard Liu, are just here to network in the crypto scene. The Beijing-based hedge fund executive acknowledges a bubble in tokens, but says he is unworried. FBG just closed a crypto fund at $100 million, which goes live in March.
A fintech specialist who has advised a national regulator admitted that «nobody has clue» how to treat cryptocurrencies, while a partner at Switzerland’s best-known crypto law firm conceded the legal industry has «no answers» either.
«Analog Finance»
There are few contrasting voice: No bankers from «analog finance», as one participant calls traditional banking, are present. Liechtenstein, which is in the process of adopting a crypto-friendly stance, is the only national regulator in attendance. In the afternoon, Switzerland’s economics minister, Johann Schneider-Ammann, drops by to unveil plans for a government working group on blockchain and initial coin offerings.
The government is putting more muscle behind its recent vocal advocacy, setting Mark Branson on the case for Switzerland. The British-Swiss former UBS banker who runs the Swiss financial regulator will team with justice and finance officials and report to the government by year-end.
Tezos Spat
And what of Tezos, which has ensnared Switzerland in controversy? The cryptocurrency is mired in a bitter dispute between its founders, Arthur and Kathleen Breitman, and the head of their Swiss foundation, Johann Gevers. She and Gevers had been touted as a big conference draw, but media including finews.com were shut out of both her appearance and Gevers’ remarks.
Tezos is certainly on peoples’ minds, including one investor who said he plans to buttonhole Gevers about his $900,000 investment in the record-breaking July ICO. Both Breitmans declined to speak to finews.com at the conference, and Gevers didn't respond to a request for comment.
«Not Evil, Just Culture»
Many participants including Liu, the hedge fund executive, called for the industry to link up with regulators for the good of investors.
«In the financial sphere, regulation is what creates the dominant design, not technology. Nobody believes me but its true,» PWC’s Guenther Dobrauz says. Because they are part of a regulatory framework, banks are not dead as the fintech industry would lead you to believe, he adds.
The conference also offers odd nuggets of wisdom to newly-minted crypto millionaires: be wary of banks. The recent slide notwithstanding, many crypto entrepreneurs still hold huge stockpiles, which are worth a pretty penny in legal tender.
«Do have a way of getting the money out,» warned PWC’s Frederik Gregaard. «The financial system as it is right now is going to do everything they can to block that. It’s not an evil will, it’s just 600 years of culture.»
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