Prince Michael of Liechtenstein: “There will certainly be a consolidation”

Do you think that the training of application cases separates the wheat from the chaff? Is this currently happening on the market?

I think that is already happening in part. But I also think that everything will take some time. New things will emerge again. I wouldn’t necessarily say that “the wheat separates from the chaff. There will be more successful and less successful [crypto currencies]. That doesn’t necessarily have anything to do with quality either. It can also be better acceptance on the market, better marketing and many other factors that play a role. But there will certainly be consolidation at some point.

Now comes a disappointment phase of the news spy

This can currently be observed especially with the news spy – they no longer have the news spy reputation. The “next big thing” being discussed in the Bitcoin ecosystem is security tokens. What do you think?

I think relatively much of both models. We need security tokens because there is a claim to assets, that’s quite clear. I think the problem with ICOs was that at the beginning you just expected too much of them. And now comes a period of disappointment. But I think it [the ICO financing model] still makes sense. Look at the financial system: To make money you have to be established and big. But there are a lot of others who also need financing. I think ICOs will be important for that. Procuring money on the stock exchange – medium-sized or small [entrepreneurs] cannot do that. Financing is also becoming more and more bureaucratic.

Monopolies have the quality of Bitcoin secret

In Liechtenstein, the subject of Bitcoin secret & Co. regulation is rather open to European comparison: In Germany there is currently the idea of finding regulation at the international level. Do you think this is realistic and sensible?

I think it is realistic. The other question, however, is whether I think it makes sense. I am a great supporter of regulatory competition. That ultimately forces regulation to become more efficient. If you have international regulation, you have a monopoly. And monopolies have the quality of becoming very static.

Liechtenstein has made itself attractive for crypto start-ups, above all through Frick Bank. What else does Liechtenstein offer crypto start-ups?

I think it is so: With the Financial Market Authority we first have a regulator that supports the [Bitcoin ecosystem]. We have support in know-how from universities. We are also a very stable and entrepreneur-friendly country. We also have relatively little bureaucracy. That’s a big advantage. We also have great security for companies. After all, we are one of the first countries to have regulation [for crypto start-ups].

Have the regulatory bases already had an impact? Has there already been any economic growth?

Yes, I don’t know exactly where it came from. But we have very strong growth. It’s probably a combination of several factors.