Top Bitmex Representatives Discuss The People's Bank of China and Bitcoin's Future

Top Bitmex Representatives Discuss The People’s Bank of China and Bitcoin’s Future

In a recent interview published on Technode with CEO Arthur Hayes and COO Ben Delo, Bitmex’s co-founders discussed Bitmex’s growth, changes within the Chinese cryptocurrency landscape, and the future of the bitcoin and cryptocurrency industries.

Also Read: Researcher from China’s Central Bank Discusses an ICO Regulatory Sandbox

Bitmex Has Shown an Invulnerability to Recent Chinese Regulatory Crackdowns Upon Bitcoin Exchanges

Bitmex was co-founded in 2014 by CEO Arthur Hayes and COO Ben Delo, with CTO Samuel Reed having also been involved from the company’s inception. Within 3 years the exchange has grown to handle approximately $75 million USD worth of daily trade across the company’s products.

Top Bitmex Representatives Discuss The People's Bank of China and Bitcoin's Future

Bitmex has shown an invulnerability to recent Chinese regulatory crackdowns upon bitcoin exchanges, which has sought to bring cryptocurrency exchanges in-line with mainstream financial institutional practices. CEO Arthur Hayes described the perversely positive outcomes enjoyed by Bitmex as a result of the regulatory actions.“We are bitcoin only so we don’t take government issue fiat currency, so if a banking system gets shutdown it doesn’t really affect us because people can still move bitcoin in and out of the platform because it’s purely a tech protocol. If anything, China shutting down the exchanges helped increase our volume because if you want leverage trading… you probably can’t do it anymore in China”

COO Ben Delo also weighed in on the recent interference into Chinese bitcoin exchanges’ operations on the part of regulators. “I think the regulatory actions in China are not so much about bitcoin as they are about currency controls. They let you send RMB in and buy and sell bitcoin, you just can’t withdraw that bitcoin, you can’t take it out of China – it’s wanting to avoid the appearance of capital leaving the country by that mechanism.”

COO Ben Delo Highlighted Concerns That Bitcoin Speculation May Be Undermining Bitcoin’s Ability to Reach Its Full Potential

The Bitmex representatives expressed strong skepticism with regards to the People’s Bank of China considering issuing RMP via blockchain technology, articulating strong warning against the political ambitions that may be realized through such a project. “They want to get rid of cash.” said Delo. “They want to control it. Already people are using Alipay and WeChat pay to handle day-to-day transactions. They want to take it a step further. By introducing electronic RMB it may have certain blockchain elements but ultimately it will all be controlled by the government. They want to track every movement of every bit of cash”

Top Bitmex Representatives Discuss The People's Bank of China and Bitcoin's Future

When discussing what’s in store for the next generation of bitcoin businesses, COO Ben Delo highlighted concerns that bitcoin speculation may be undermining bitcoin’s ability to reach its full potential in terms of utility, and that future successful start-ups may seek to reconcile and circumvent said antagonism. “In some parts of Africa you’ve got some people using phone credit as a form of money. Tech like Bitcoin could provide the world with banking facilities without the need to actually setup infrastructure. At the moment you can’t do that because Bitcoin is a volatile, speculative currency. But once people build the next generation of cryptocurrency wallets, they will start offering something like a bitcoin-backed US dollar, that is worth a US dollar, and be transacted on a blockchain. Once you’ve got that you can start offering banking to the unbanked just on an app.” Only from this basis, Delo speculated, can products such as peer-to-peer finance, insurance, investments options, etc., be sustainably delivered via blockchain technology.

Do you think China will issue national currency via blockchain technology? Share your thoughts below!

Images courtesy of Shutterstock & Bitmex

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  • Global Services Ltda

    I knew it was simply a matter of time before the central bankers would figure out the block chain and achieve their “cashless society” where every cent spent may be traced back to the origin as well as identify every person who touched that penny between point A to point B.
    Greedy bankers and vulture career politicians are learning about crypto currencies and licking their lips with tax $$ signs in their eyes.
    Just imagine paying interest and commissions on every crypto cent you spend as though you were using a credit card for every purchase.
    Weeeeell, that is what our fearless elected representative leaders have in mind.
    The Chinese and Russians have already figured this out, the American and EU bankers have too but they are not as vocal, they love their surprise attacks.
    Next, the IRS and Wall St. will be in charge of crypto currencies with the Fed manipulating interest rates.
    Look for some new “internet privacy” legislation soon which will allow us about as much privacy as the Patriot Act inspired patriotism.
    BTW, one should read the Patriot Act just for laughs and to know the mentality of our protectors.

  • Dbt123

    Just curious…But is the author related to Alexander Haig?

  • Both hands in all of your pockets,even the hidden ones. You own nothing, the State allowance is all you will have. Communism, Socialism, Marxism are the first to feel the pain of a crypto world. My secrets vs no more secrets. Keep those idiots talking, they look and sound like criminals persuading a huge swindle.