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Italy: blockchain and fintech included in the program of the coalition government contract

31 May 2018 00:00, UTC
Italy: blockchain and fintech included in the program of the coalition government contract
By Vsevolod Gnetii

The 57-page contract on the formation of a coalition government composed of representatives of the Five Star Movement and the League contains a clause on the introduction of a blockchain into the banking sector. The program states: "It is necessary to invest in the development of innovative technologies to provide financial services and products (blockchain and fintech), as well as to guarantee greater transparency of financial transactions."

The creator and ideological inspirer of the Five Star Movement, comedian Beppe Grillo, has repeatedly stated publicly that he is genuinely interested in the blockchain believing that this tool will reduce the role of the banking sector as the main lending institution in the lives of ordinary citizens. The Five Star Movement positions itself as the main political force with a declared interest in the technology of blockchain, so the Italian media have already dubbed it as "Coin Movement". The Millennials are the main owners and holders of cryptocurrency in the world, and they are the main electorate of the Five Star Movement in Italy.

Beppe Grillo and his partner in the field of Internet technologies Davide Casaleggio are promoting the idea of ​​creating a national cryptocurrency in Italy. The idea was concretized in the form of minimal short-term state obligations (BOT) of small denomination, in the equivalent of 100 euros. The goal is to bypass the restrictions set by the ECB. In fact, it is the case of the introduction of a new currency parallel to the euro.

According to some experts, at a certain moment, the minimum government short-term obligations (BOT) can be converted into a cryptocurrency, that is, in the digital currency, an alternative to euro that will circulate on the whole territory of Italy.

The ideologue for the introduction of minimum government short-term obligations (BOT) as an alternative to the euro was economics professor Paolo Savona, whom allies in the coalition, the Five Star Movement and the League, have proposed for the appointment as the minister of economy, which shocked the European Commission.

Under the pressure of the German government, represented by Wolfgang Schäuble, the former finance minister and "crisis manager of Europe", Italian President Sergio Mattarella vetoed Savona's nomination, foiling the formation of the coalition government. The proposed technical government, led by Carlo Cottarelli, with a short-term appointment until the new early general parliamentary electionsб did not find support for parliamentarians.

In this stalemate, the Five Star Movement and the League reproposed as a compromise solution Paolo Savona as a member of the government, but not as Minister of Economy.

Until very recently, Paolo Savona was president of the Euklid fintech hedge fund, with headquarters in London, at Canary Wharf. He resigned from presidency in view of the possible appointment to the Italian government.

In the event that the Five Star Movement and the League manage to force the candidacy of Paolo Savona as a member of the government, this will mean a radical shift towards the blockchain and the fintech.

Moreover, the EU will have the first national government ready for a real transition to a digital economy, based on cryptocurrency technology.

UPD: According to information from well-informed sources, the President of Italy has already given an informal consent to the inclusion of Professor Paolo Savona in the government and over the next few days a new government can be formed.

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