On the 5th of September 2017, Gur Huberman, Jacob Leshno and Ciamac Moallemi, respected Finnish Central Bank Research economists released a report into Bitcoin technology.
The report claimed that the virtual currency’s infrastructure provides a degree of protection against manipulation by bad actors through its protocol-layer dynamics.
The three stated that:
Bitcoin is a monopoly run by a protocol, not by a managing organization. Familiar monopolies are run by managing organizations with discretion to determine and then change prices, offerings and rules. Monopolies are often regulated to prevent or at least mitigate their abuse of power.
Due to the fact that Bitcoin runs a protocol, it has no need for government regulation. This is due to the fact that the network will always enforce Bitcoin’s code and because the users will determine fees according to the required transaction time.
A Forward Thinking Finland?
It is worth noting that the Economists do not speak for the Bank of Finland. Yet, they are official researchers in the Bank’s research arm and as such will probably have an receptive ears from the regulators.
This is not the first time that the Finnish central bank has opened up academic opinions on the blockchain and Bitcoin. In 2016, the bank hosted a seminar on blockchain technology which was attended by regulators, academics and companies.
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