Prime Minister Joseph Muscat said he believed that cryptocurrencies are “the inevitable future of money”, just days after cryptocurrency exchange giant Binance confirmed its move to Malta.
“The concept of cryptocurrencies excites me as it strikes at the heart of a key philosophical element that economy students are taught at the beginning of their course,” Dr Muscat said in a political speech in Mqabba.
“Have any of you ever thought about what gives paper money its value when it’s ultimately just pieces of paper? It is because society attributes value to it. Now some people, who in my opinion are geniuses, are arguing that that value can similarly be attributed to virtual currencies.”
"The concept sounds confusing right now, but I have no doubt that it will form the base of a new economy in the future. Just as we attribute value to pieces of paper, so too will future generations attribute value to electronic storage systems."
Last month, the government laid out its plans to become the first country in the world to fully regulate companies which operate on blockchain - the technology that underpins cryptocurrencies. One of the three bills in the pipeline is a Virtual Currency Bill that will provide a legal framework for initial coin offerings and regulate crypto wallet providers, cryptocurrency exchanges and asset managers.
“These blockchain operating companies don’t care about our taxation system but are coming to Malta, because of our innovative regulatory structure that will certainly be the first, and I think also the best, in the world,” Dr Muscat said.
TRON Foundation founder Justin Sun tweeted his support for this vision, praising Dr Muscat's great foresight. Binance is one of the top exchange platforms for TRON with $127.09 million worth trading volume.