Chairman of the Exchange Organization: Legislators determine the currency or assets, the existence of digital currencies
Majid Eshghi, the head of the Exchange Organization, has asked the legislature to specify the issue of currency or the existence of digital currencies in the law. He also said that securities may be offered as tokens in the financial markets in the coming years.
According to digital currency and to Quoted From Mehr News Agency, Majid Eshghi stated today at the 7th Islamic Financial Conference:
Regarding the discussion of cryptocurrencies, it should be emphasized that there are two perspectives on the discussion of cryptocurrencies. One is that cryptocurrencies can be discussed as a currency or as an asset; Well, if we consider crypto as a currency, it is usually a policy-making and how to use and develop it with the central bank, and the stock exchange organization does not have an entry regarding the currency according to the law. Recently, however, due to the rapid development of the cryptocurrency market, cryptocurrencies have been debated in the EU and other institutions that comment on the tools, so in terms of recognizing this phenomenon as an asset, in the field of regulatory oversight. The capital market is also located and it is possible to enter this field and regulate and use it.
Eshghi has said:
At the moment, we have to decide in several areas in the field of cryptocurrencies. One is the issue of its extraction, the other is the issue of transactions, platforms, the release of crypto in the domestic market by an official entity, which of course itself calls into question the decentralization inherent in crypto, and the issue of blockchain technology and similar technologies for Consensus algorithms are defined on which we must clarify our task.
He continued:
However, there is currently only a brief set of rules for mining, which is the responsibility of the Ministry of Industry, Mines and Trade; That is, the issue of licensing and setting up crypto mining centers. Regarding other cases, we do not yet have a clear position on the part of the legislator and the policy-maker, which, as a rule, should be prepared according to the religious and customary debates that are raised, so that a decision can be made on it.
Eshghi added:
The point I have to make about the second view is that the use of consensus algorithms, whether blockchain or other algorithms that are being developed, are opportunities that we must seize. In the not-too-distant future, in the last two to three years, we will have to use these technologies.
The head of the stock exchange organization further said:
We currently have serious problems with holding corporate meetings. Boards of companies formed with the direct investment of several million people, well, in practice, these boards can never reach the quorum required to form a board. This means that a company with five million direct shareholders can never form an assembly with a majority of votes, and we always have to form an assembly with a very small number of people. The experience of forming assemblies of provincial stock companies of justice was of this kind. Last year and earlier this year, the assemblies of these companies were formed with a presence of less than one tenth of a percent.
Eshghi explained:
One of the most serious solutions to this problem is the use of technologies that allow both the discussion of authentication and the possibility of wide participation of a wide range of people in an event. Another issue is the application of China Consensus and Blockchain algorithms in transaction logging. One of the ways in which financial markets move is to simplify trading; Although different institutions are involved in the chain of transactions, settlement and clearing of transactions, but we went to simplify these transactions in clearing and clearing in such a way that the investor does not feel the existence of these institutions and all easily and in the shortest time and Make transactions at the lowest cost.
The head of the stock exchange organization added:
Perhaps one of our tools for this purpose is to discuss the use of this technology. In terms of settlement, despite the number of actors and the need for simultaneous settlement, it can be said that one of the technologies that can help in this regard is the discussion of China’s consensus and blockchain technology. The same is true of the transfer of assets. In the next few years, we will probably have to turn both physical assets and securities into tokens that make them easier to transfer, and we will be able to carry out this transfer in a context that still has multiple actors.
He reminded:
When the capital market is formed with 100,000 people, it has different processes than when the capital market becomes 60 million people. We certainly can no longer work with the tools of the past and it does not work and what we saw last year happens. We even had a social crisis for authentication; We saw long queues of shareholders and applicants to get codes and authentication and receive services from financial institutions. This, of course, is for the financial institution, and this population will certainly do whatever it wants, it will definitely happen.
Eshghi stated:
Therefore, I would like to ask all my dear ones who are involved in research and academic debates, and even fintech industry actors, to work in areas that are related to the capital market, and in the cases that I mentioned and other cases that are definitely fintech companies and financial institutions. On it, they are concerned and have ideas and plans to expand their services, to accompany and help the capital market. The oversight body is ready to consider these issues. I believe that in the next two to three years we should move in the direction of using this technology because we have no other choice. Discussing providing services to this volume of people in a physical context and with previous tools is definitely not possible and will challenge everyone.
The head of the stock exchange organization stated:
We ask the jurisprudential committee, both in the Exchange Organization and in the Central Bank, to help determine the jurisprudential issues related to assets, the existence of these tools and how to convert current assets (physical assets and securities) into tokens and use these tokens in a technological environment. We can use it to facilitate transactions and clearing bills.
He mentioned:
Regarding cryptocurrencies, the issue of their existence is really a serious concern not only inside Iran but also in other countries in terms of money market and capital market regulators, which may hit crypto investors hard in the medium term. Another argument is that these cryptocurrencies, given the breadth and variety they have found and the variety that has been created and the actors that are distributed in this market, can seriously damage the cryptocurrency debate and the underlying debate in the long run. There is.