Digital assets and cryptocurrencies։ What is the future of financial technology? Interview with the head of Fastex

Recently, the cryptocurrency industry has not been experiencing the best of times: the collapse of the famous FTX crypto exchange has shaken the confidence of many investors and ordinary people in this sector. However, today there are many specialists who are sure that the future of financial technology belongs to cryptocurrency and digital currency anyway.

Vakhtang Abrahamyan, executive director of Fastex company, said in an interview with NEWS.am Tech that today it is not so important for an ordinary citizen which technology works under his financial transactions. What matters for the citizen is that these transactions are convenient, reliable and affordable. Modern digital technologies can provide all these conditions.

"Instead of digital cryptocurrency, it would be correct to use a digital asset, because it is a slightly broader concept. As for the crypto-asset, the Central Bank's digital currency agenda is imperative at the state level, almost all countries must have that agenda in one way or another. It has already been launched in many countries, for example, China, the European Union is already implementing pilot programs, there is a digital dollar project in the USA," the specialist noted.

According to him, eventually we will all witness the transition to the use of new technologies in the financial sector.

"An ordinary citizen makes a payment by phone. What kind of technology works under his electronic wallet, is it digital currency or electronic money? I think it is a secondary question for an ordinary citizen," said Abrahamyan.

Speaking about the cryptocurrency industry, the specialist noted that the collapse of FTX really undermined people's confidence in this industry. A number of other factors have also contributed to the undermining of cryptocurrency's reputation, such as issues related to the quality of corporate governance, lack of proper oversight and regulation; because of all this, centralized crypto exchanges have found themselves in a rather difficult situation, because if there is no regulatory body to dictate the rules of the game, everyone will be guided by their own knowledge, experience and desires.

However, the problems that arose against the backdrop of the collapse of FTX, according to Abrahamyan, drew the attention of many countries to this sector, and many countries somehow started trying to regulate this sector somehow, as traditional financial systems are regulated, but taking into account modern financial systems. According to the expert, the countries that will be the first to make the necessary adjustments in the field of regulation of cryptocurrencies and digital assets will ultimately benefit.

"In Hong Kong, a new law has recently come into force, in which it is written in a simple, understandable language for the businessmen, what crypto exchange is, crypto activity, what does it mean to trade in cryptocurrencies and digital assets in general, how can you work in this field in this country. We, at Fastex, are also interested in working in Hong Kong and are already working on opening a representative office in Hong Kong and obtaining licenses," said Abrahamyan.