DAVOS, SWITZERLAND — Blockchain and Web 3 are the future and that the UAE’s strategic position globally and well-designed cities of Dubai and Abu Dhabi make them critical players in the industry, Anthony Scaramucci, founder of SkyBridge Capital and former White House Director of Communications, told TRENDS in an exclusive interview.
Expressing his opinion on the regulation of cryptocurrency in the US, Scaramucci said that the industry needs more regulation to prevent immoral and aberrant behavior.
He emphasized the importance of blockchain industry leaders and associated individuals working with public servants to regulate the market. He also suggested a need for a regulatory body similar to the Securities Exchange Commission to prevent scams and immoral behavior.
Excerpts:
What challenges do the GCC countries — especially the UAE and Bahrain — face in adopting blockchain and cryptocurrencies? How do you envision their future?
The blockchain and Web 3 are the future. Technology is designed to make our lives easier and more cost-efficient. The leaders in the UAE and policymakers recognize that they need to be part of Web 3 to replace many societal processes. The blockchain and Web 3 are delayering mechanisms that will eliminate intermediaries worldwide. The UAE is in a critical position globally, given its geopolitical position, trading ports, and well-designed and planned cities of Dubai and Abu Dhabi. These cities of the future will draw in other Arab cities and GCC countries into the space.
Given the recent issues with FTX and Binance, what is your opinion on the regulation of cryptocurrency in the US?
I believe that we lack sufficient regulation. The international entities that have less regulation or regulatory oversight are the ones that seem to be getting into trouble. While the blockchain does not require regulation as a permissionless technology, the people involved in the industry need to be regulated to prevent immoral and aberrant behavior. Blockchain industry leaders and associated individuals need to work with public servants to regulate the market. For example, in 1933, after the Great Depression, Franklin Roosevelt hired Joseph P. Kennedy, who knew all the tricks, to defend against the scams and immoral behavior in the Securities Exchange. We need to do something similar now, but it may take several years due to politicians’ caution.
Can you share your objectives for attending Davos this year?
I am here with a four and a half billion Multi Strat, as well as several US$ 100 million in cryptocurrencies and private equity. I have been attending the World Economic Forum for the past 16 years as I have many friends here, and I enjoy the experience. In December 2019, we held a conference in Abu Dhabi at the Emirates Palace hotel before the COVID-19 pandemic struck. Currently, I have a little over half a billion dollars in cryptocurrencies, but if you had asked me that question a year and a half ago, I could have said up to a billion.
What is your reaction to what happens at Davos?
In my experience, Davos serves as a good contrary indicator. When I first attended in 2007, people were optimistic about continued growth, and we entered the global financial crisis. When I returned in 2009, people were pessimistic, and we started the greatest bull market in global history. Similarly, in 2016, people thought Hillary Clinton would win the presidency, while in 2020, they believed that Donald Trump would be re-elected. When global elites come together, they tend to agree on a consensus view to avoid disappointing each other. Currently, the consensus here seems to be that Web 3 and cryptocurrency are dead. However, I take this as a contrary indicator and a good sign for the cryptocurrency industry. We are probably at or near the bottom, and if we speak again in 2024, I may have the opportunity to be proven right. But if not, I am prepared to be criticized like American journalists.
What are your major takeaways from Davos 2023?
The overall sentiment at Davos 2023 is pessimism, contraction, and anger towards wealth disparity and environmental havoc. However, I tend to leave Davos optimistic when the sentiment is pessimistic, as it serves as a good contrary indicator. If we were super optimistic, I would be concerned, as it would also indicate a contrary indicator.