John Todorov from dagx.live: Crypto Can’t Beat Banks–But it Can Make them Better
John Todorov senior trader at dagx.live crypo trading platform speaks on how the cryptocurrency industry is affecting global banking and financial regulations.
Companies that have been operating within the cryptocurrency space have been calling on regulators to pay more attention to the industry for years, and with limited success. Even when Bitcoin was at its peak and the ICO sphere was booming, totally unregulated, it was months before many regulators uttered a single word on the matter.
All of that suddenly changed last week after Facebook released the whitepaper of Libra, its global stablecoin project. Some US regulators have even gone so far as to request that the company place a moratorium on the project’s development until they have a better sense of what the project is and what it will be capable of.
In short, things are changing fast–and the companies that have been in the space for several years are gunning for what may be the end to the lack of clarity that has characterized crypto regulations since Bitcoin was invented.
Recently, our reporter Lana Morrison spoke to John Todorov, dagx.live's senior trader, about how his company has been working with regulators since it was founded, as well as the future of cryptocurrency regulations.
Long before Facebook announced the Libra project, Todorov said that Bitcoin and other cryptocurrencies were already having a major effect on the status quo of the financial world.
Speaking as “someone who was always interested in financial systems and financial procedures,” Todorov said that “you always feel like financial systems are much less efficient than they could be.”
And he sees crypto as a possible catalyst for an increase in efficiency. “If you look at history,” major internal progress didn’t happen “unless there was an external force that gave the push over the edge.”
“By definition, up until Bitcoin, there wasn’t anything that was really external to financial systems. As a company, you have to be connected to the financial systems–if you want to pay salaries, if you want to accept payments.”
“And all of a sudden, something here can really make a difference,” he continued, adding that “I’m not on the Libertarian side, I don’t think that banks, or for that matter, governments are going to go away. But I do think that given the proper shift in balance, we can see something.”
“Even if the crypto industry just pushes the banking industry to be 100x or 1000x cheaper, more efficient, and open for inside competition…and if it actually brings financial systems to people around the world, then I’ll be satisfied.”
Todorov explained that his company’s position in all of this is to “enabling easier access to people who want to get into the crypto world.”
According to its website, dagx.live operates with the goal “to eliminate inherent online payment risk and make online commerce safe for all.” The company runs “a secure escrow service for large fiat-to-crypto transactions,” and payment processing platform that “enables merchants worldwide to accept diverse payment methods, including credit card deposits and purchases, with zero exposure to chargeback risk.”
“Credit card fraud is the cause of the theft of tens of billions of dollars per year,” Todorov explained, and “when we started dagx.live one year ago…[the purchase of crypto with a credit card] is something that was considered impossible to provide.”
But now, dagx.live enables users around the globe to “buy and deposit funds in crypto exchanges while benefiting from a familiar e-commerce experience.”
Essentially, the company makes it possible to buy and sell crypto with a credit or debit card without giving the card’s bank much say in the matter. “The fact is that it’s not going through a bank,” Todorov explained–if you withdraw fiat from an exchange using dagx.live, dagx.live puts the withdrawal as a positive balance on your credit card; “if it’s a debit card, it moves to your debit account.”
“Dagx is a licensed crypto trading platform,” Todorov said. “We do transact, hold, or process crypto transactions, per se.” Essentially, “we keep on finding a way between the raindrops… finding a way that we can act without breaking any regulations.”