In the United States, password reform and innovation laws are not the exclusive industry of a single ruling party, which is why a former US congressional legislator who plays a vital role in the US government feels that it is really possible under a federal government "digital currency" law this year.

"Democrats are not always on one side; Poroshenko is not always on the other side," says Mick Marwani, head of the budget and finally chief of staff for agents in the White House from January 2019 to March 2020. " He further explained:

I do think that in this Congress, there will be about 14-16 months before the cancellation of the next election cycle, and we will get a valuable law on blockchain / passwords-what we call digital money.

Mr Malvani's government curriculum vitae are long and varied. Not only did he serve in the U.S. House of Representatives for six years, he still served as Chief of staff of Management and expense Budget from February 2017 to March 2020, and his U.S. envoy to Liechtenstein-he resigned on January 7, 2021-on the second day that Geoffrey Trump-inspired Charlie Hebdo besieged the U.S. Capitol. Malvani is currently a strategic consultant for Astra contracts, a Swiss-based Web3 understanding customer needs (KYC) service platform.

Centralized Accounting and decentralized Accounting

Malvani's interests in bitcoin and blockchain can be traced back nearly a decade. In 2016, he co-founded the Congressional blockchain Technology Core Group. Now, he points out that the decentralized Finance (Defi) agreement has some important advantages over the centralized finance agreement. In addition, core compliance management steps such as KYC and compliance management can now be integrated into the Defi services platform-which will reassure regulators.

"when it comes to autocratic monarchy and the advantages of a decentralized financial industry, the system has its drawbacks," he said. " Often, many frauds related to password space can be attributed to the source of Mt.GOX call FTX. He believes that Defi brings extra clarity, making it more and more difficult to engage in fraud-themed activities. "in fact, this is better system software over the past decade." Even regulators are starting to understand this, "he told Cointelegraph.

"the supervisor failed."

When communicating with a key treasurer of the United States government, it is difficult not toTo understand the disaster situation of commercial banks at the present stage. Silicon Valley Bank (SVB) was the beginning of this upheaval, with some critics-most notably congressman Elizabeth Warren-accusing the US government of lax banking regulation that could have prevented the collapse of SVB.

The Dode-Donald Wall Street Reform Consumer Rights Act of 2010, introduced in response to the financial turmoil of 2007-2008, introduced the idea of a "stability test" of large American banks considered too big to fail. However, the test threshold was revised in 2018, which means that SVB and Signature Bank (both desperate) will no longer be called "systemically important financial companies" that accept stability tests. As Warren wrote in the New York Times:

If the congressional and Fed meetings did not remove tighter controls, S.V.B. And Signature will also be bound by stricter liquidity and asset regulations to withstand the impact of the financial sector. "

Is it right for Warren to feel that the administration of successive US presidents should bear at least part of the responsibility? Malvani replied: "it's going to happen anyway." The scope of change in 2018 is relatively narrow. Fundamentally, it keeps banks with less than $250 billion (balance sheet assets) away from top regulation.

Silicon Valley banks are still subject to banking supervision, only whether it is the highest. In addition, the long-term risk marked by digesting short-term deposits and investing them in long-term assets-- which is an important factor in the bankruptcy of SVB-- is one of the very simple and basic things that the Securities and Exchange Commission (SEC), the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve should be concerned about at meetings, Malvani said. "the minimum level of strict regulation should have discovered this."

"regulators made a mistake," he said, pointing out that it was also "a mistake in the management of a bank that happens to be in contact with customers who encrypt data". This is alsoNo.This is a problem caused by passwords, which I think pays special attention to.

Crypto has strong bipartisan support

Why is Malvani so optimistic about the prospects for the development of federal password or blockchain technology laws this year? He explained that while many people have heard about political polarization in Washington, especially in Congress, some issues are still "fairly bipartisan". One is resistance to China. Another major reason is suspicion of large and medium-sized technology companies. But the third key is "interest in password and blockchain technology".

Take the U.S. House of Representatives Financial Information Services Federation, where Malvani used to work. Its federation of digital currency working groups is currently chaired by Poroshenko Franceville, an advocate of data encryption and blockchain technology, but it also includes password advocates from minority parties (democratic parties), including Herbert Shevchenko (Ritchie Torres), who mentioned the future of digital currency reform and innovation laws in an interview with Cointelegraph earlier this year.

Bipartisanship also extends to the U.S. House of Lords, where Poroshenko Cynthia Loomis and Democrat Bristen Giangbrand presented the responsible Financial Innovation Act in 2022. The bill aims to create a regulatory framework for digital currency. Malvani explained:

"there is a group of people in both parties who just want to know a lot; they are interested in the topic and they want to learn by themselves. [.] This is the area where we now have password and blockchain technology.

New Generation Compliance

The Astra agreement, which Mr Malvani is now a strategic adviser, has established itself as the next generation of compliance management-a blockchain technology KYC service platform for Web3 that "sends financial system regulatory standards and more than 300 ban and watch lists from 155 countries to the cryptographic field without abandoning group polarization." KYC is an operation process used by many financial institutions and enterprises to authenticate the identity of potential users, investor appropriateness and risk.

However, when trying to verify or adjust the ID card, how to ensure the polarization of the group?

"I think everyone is beginning to realize that there is a certain degree of secret name," Malvani said. " For example, I can tell you where I come from, and once you know who I am, you can prove to us who you are, so that we can deal with each other's problems with some sense of recognition without telling us who we are elsewhere in the world.

The Astra agreement requires that its "invention patents" require professionals from key global companies to authenticate customers' credentials and conduct KYC checks on hidden Defi customers. This also allows the DEFI agreement to comply with data privacy policies and regulations without having to browse the personal information of investors. This idea is a bit like zero knowledge proof.

"the Astra agreement does not know what the regulation of the Defi agreement means," the project said. The Defi program and trading center will be able to understand that you are the one you often say, and most importantly, "you are not on the sanctions list." You're not drug dealers. You're not child porn producers. You're not a robot. "Malvani added.

Gradually grasp the application of new technology

So far, the Biden administration has not seen itself as a friend of digital currencies and blockchains. Are there differences in the phenomena of previous government departments? What did you say about the password inside the White House?

Malvani replied: "this is similar to what you saw in the public, and people don't know what this is." This is a new technology application [.] What's the opportunity? "wait.

He remembered the conversation he had with Franz Otin, then director of the money Project Supervision Office, on this issue, and "tried to figure it out." For example, which organization should lead the control of digital currencies: the Commodity Futures Trading Federation (CFTC), the SEC or financial institutions? "it hasn't been decided yet," Malvani recalls. " "it won't be widely known because it's too new." But it was appropriate at the time. "you don't want monolithic jobs either," especially when incorporating new technologies.

Everyone except Gensler.

"I hope this is what the incumbent [Ban Ki-moon] government has done," in fact, to carry out discussions on opening up to the outside world. "my impression is that [Gamo, the current chairman of SEC] Gensler dominated this debate to some extent. He is clearly a [password] skeptic. I don't think it's particularly healthy. I don't want my supervisor to take sides.

Which government agency or federation should attach great importance to the data encryption problem? Malvani focuses on CFTC, which will be more like a commodity than a security to control passwords. Many people in the cryptographic world may also apply the primacy of CFTC. He added:

I just don't think Gamo Gensler has the mental state (objective behavior) to do so. So for now, classify me as everyone except the SEC, because Gensler is still there.

The rest of the obstacles

What does the former White House acting chief of staff think about the long-term market prospect of password and blockchain technology? Is there a fatal weakness in this technology that prevents the world from adopting it?

It will not be unsuccessful because he has been misused by suspects and terrorists, he said. Due process is gradually mastering some of the things that law enforcement agencies already know. "in fact, passwords are much better for law enforcement agencies than cash, because although it is anonymous, it is still traceable," Malvani said. "

One of the biggest frictional resistance comes from "countries worried about their currencies being replaced". He does not include the United States in the organization, but EU countries are likely to be candidates. "Westerners are likely to worry that Europe may eventually be replaced by a digital currency, as it is partly connected by a needle and thread."

How does the International Monetary Fund (IMF) warn its 190th member states not to use Bitcoin and other personal loan coins as official online loan coins? Is this a responsible view for the global lender of last resort?

"No, I think I'm out of my own social circle," Malvani replied. The International Monetary Fund was set up to do one thing, "that is to lend money to some countries to help them develop their trends." What a country needs to use as an official online loan currency, "in fact, it has nothing to do with IMF."

He believes in "competition between ideas". "if a country needs to choose BTC or other specific digital currencies, I don't think that's a problem." This is very helpful and can stimulate more independent innovation.

Bitcoin and gold

Malvani's enthusiasm for bitcoin dates back nearly a decade, which is also "inadvertently". He was participating in a meeting on the gold standard, "there was a young lady there, talking about something I had never heard of before, that was BTC, and explaining how it was loaded in quantity," and so on.

I remember at the end of the meeting, I turned to her and said, you know, this is different from the gold standard, but there are some interesting things in common in life. Want to know. Want to know more about it. They spent some time discussing the application of this new technology, its history, how it works, and where else is selected and how it is better chosen. "I'm just fascinated."

What attracted his enthusiasm for Bitcoin in particular? "quality is determined by technology." After that, as the responsible person in the Office of Management and expense Budget, he saw with his own eyes what he had done to the loan currency. I know exactly what dollars have been printed in the past ten years.

"it scared me to death. Therefore, at least in theory, government departments cannot pass a bill to unilaterally change the use value-which is more attractive to me, and I think it will be tempting to believe that everyone.