Erik Voorhees, CEO of ShapeShift, has been passionate about cryptocurrencies and blockchain technology since the time Bitcoin was as little as $5. When given the opportunity to share his insights of this new space with Bloomberg’s Caroline Hyde, he did not hold back.
He mostly gave his perspective on how cryptos and its technology can make a difference in the future, while stressing the fact that regulations need to be lowered.
— Erik Voorhees (@ErikVoorhees) June 9, 2018
Of the entire discussion, the notion of regulating cryptocurrencies seems to have been highlighted, as Voorhees believes that such intervention is not required. In particular, he stated that “a lot of it is hurtful, especially in the roam of finance,” which led him to say that, “money needs to be let loose and free.”
He further argued that the centralization is what cryptos are against, and their role is to bring alternatives to consumers, mentioning that, “competition is happening, which is a good thing.”
Competition was another facet of crypto that Voorhees seemed to have particular interest in because they too can compete now. When Hyde asked him about the versatility within the crypto space, Voorhees did agree that, “there are a lot of projects in the space, a lot of them are garbage, a lot of them are well intentioned, but will fail and some of them are actually going end up changing the world.”
Taking this point, Hyde asked Voorhees whether or not he believes regulations can help to pinpoint scams and red flags, to which he held his stance and said no. He believes that regulations should be in place to “prevent fraud and theft” and that it does not need to be done in “a thousand pages”.
In particular, he said:
“Most of the regulations have nothing to do with fraud or theft… they have to do with controlling the behaviour of consenting adults and some of that is highly problematic.”
An example of New York was discussed, where Voorhees blames a particular license that led many crypto companies to flee the city.
As for ShapeShift, Voorhees stated that it is a “system that protects consumers… without holding high amounts of risk.” The company’s emphasis on consumers is worth mentioning here as their goal to create a platform in which trading is done securely and quickly.
While he at some point did think of raising funds through Initial Coin Offerings (ICOs), he later decided not to as it would not provide the opportunity to put together a formal board nor will it result in partnerships with experts.
Lastly, Voorhees wraps up his discussion by mentioning the remaining confusions that need to be fixed and that is, “whether a token is a security or not”.
Image Credit: Bloomberg