Cryptocurrencies Won't Succeed Until There's A Single Global Gov't - Kaspersky

Cryptocurrencies will not be successful until government authorities give up their bid to control them, or all countries are united under a single global government, Eugene Kaspersky, CEO of cybersecurity firm Kaspersky Lab told Arabian Business in an interview.

“Cryptocurrencies are a great idea, but the world is not ready for them yet. The world must be united if we want to have encrypted currencies. At the moment, governments will want to control them,” he said.

“I believe that in the future, perhaps in 100 years’ time, all the world’s governments will be one government. States will unite under the [Government of the Earth] and only then we will have one currency. Some other currencies may be available, but on a global scale the currency will be unified.

“I think that in the future the currencies will be digital rather than paper. Today’s digital currencies, such as Bitcoin, cannot replace the current financial system, but some of the ideas and techniques on which these currencies are based can be used in the future currency with little modification, leveraging blockchain technology,” he added.

Tough year

Bitcoin, the world’s most popular, had a tough year in 2018. Data from Refinitiv’s Eikon showed that Bitcoin lost 72.5 percent of its value against the American dollar last year, ending the year at $3,693.30, having reached previous peaks of as high as $19,187.70.

As Kaspersky calls for less control and more collaboration among governments, in order for cryptocurrencies to succeed, in January the United Arab Emirates and Saudi Arabia announced they were collaborating on a joint cryptocurrency.

The Executive Committee of the Saudi-Emirati Coordination Council agreed to work on developing a pilot cryptocurrency. The cross-border digital currency will be strictly targeted for banks at an experimental phase. The project will also determine the impact of a central currency on monetary policies.

Read Kaspersky’s full interview in Arabian Business, where he addresses a range of issues, such as recent allegations by Western media giants that his cybersecurity firm develops spy tools for Russian intelligence. He also discusses the early origins of his company, as well as the many cybersecurity challenges in the Middle East.