Expert: “There is a risk of a “black market” related to the purchase and sale of cryptocurrencies”

Expert: “There is a risk of a “black market” related to the purchase and sale of cryptocurrencies”

The new generation of population in Azerbaijan is more optimistic about the use of blockchain technologies, including cryptocurrencies. But there are “black market” risks associated with buying and selling digital currencies.

“Report” informs that this was done by Vusal Khalilov, the chief technology officer of one of the Azerbaijani banks, with the support of “Azerbaijan Banks Association” (ABA) Public Union, CBA, Center for Analysis and Communication of Economic Reforms, in cooperation with “Mastercard” international payment system, the VI International Banking held in Baku. He said in the forum.

According to him, experienced people see those risks: “There can be cases of tax evasion, as well as low-quality products and services. On the other hand, uncontrolled financial flows can lay the foundation for larger-scale problems. I think that control is very important in this field. We can divide the control into two parts. The first is the control of some centralized organizations, Central Banks and other institutions, and the second can be control at the legal level,” he said.

“If we look at the statistics, we will see that the amount lost and stolen on “Bitcoin exchange” alone is 140 billion US dollars. This amount may increase or decrease depending on the price of “Bitcoin”, but even if we halve this amount, it is quite high. In these cases, the Central Banks and or other banks don’t have a counterparty to act on, and that has its own risks. On the other hand, we see that decentralization is seen as a very strong factor in many crypto projects. Of course, there are positive aspects to this, but while this process is centralized, that is, if there is any bank or organization behind it, the interests of the clients are protected,” added the expert.

The bank official noted that when crypto projects are not centralized, the customer’s responsibility increases and protection against cyber attacks on their interests depends on their knowledge in this field: “Today, we see that when a customer transfers money to another customer, when there is a delay or shortage, their application There are several instances to do this. But in decentralized exchanges and other markets with uncontrolled financial flows, there is no body to turn to if something goes wrong. I think the biggest risks are that these customers lose their digital assets and buy poor quality products and services. So there are two constants there is an important factor. It is impossible to prevent technological innovation. On the other hand, each of us must increase our knowledge and skills in this field. Both the Central Bank and other banks should hold trainings and inform about this, so that citizens can increase their knowledge.”

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