Interview: Central Banker Eugene Etsebeth Joins Crypto Exchange iCE3X
September 30, 2018 by Jon Southurst
The words “central banker” and “cryptocurrency” usually only come together in the investment and regulatory warnings these institutions issue from time to time. But like in the recording industry of the early 2000s, there are individuals holding senior positions who can see the future, and foresee the longer-term impact of new technology. One such person is Eugene Etsebeth, former technology lead for virtual currency and distributed ledger technologies at the South African Reserve Bank (SARB), who is about to join cryptocurrency exchange iCE3Xa as chief operating officer. Bitsonline spoke to Etsebeth about why he became fascinated with the topic even years before bitcoin appeared, his experiences at the central bank, the issues unique to South Africa and the region, and what he expects to accomplish in his new role.
Also see: WSJ Looks at Money Laundering in Crypto, ShapeShift CEO Pushes Back
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From ‘Cybercash’ to Cryptocurrency Exchange
Etsebeth, who has been tweeting about cryptocurrency issues for several years, said he encountered the concept of “cybercash” as far back as 1999, a time when only bankers and cypherpunks pondered what money actually is and how it could evolve.
Coupled with his experience at SARB and a realization that even nation state-free money would have to interface with the existing financial system somehow, Etsebeth embarked on a new course — with South Africa’s most prominent exchange, iCE3X (pronounced “ice cubed”). He starts officially on October 1st.
An announcement on the company’s blog stated: “At iCE3X, Etsebeth will actively seek business opportunities and partnerships, constantly engage and work with regulators and concentrate on expanding the business with comprehensive policies and processes.”
Interview: Eugene Etsebeth, iCE3X COO
Jon Southurst: You’ve been talking about cryptocurrencies/blockchain for a while now. When did you first become interested in it, and what aspect/s appealed to you?
Eugene Etsebeth: My first encounter with cryptocurrencies began in 1999. That may sound a little early for something that only gained notoriety in 2008/2009, however my encounter began with the reading of a book called “The Sovereign Individual”. The authors – James Dale Davidson and William Rees-Mogg – discussed a world where the internet would allow “cybercash” and cybercommerce. Here the authors presciently described a new form of digital money that will be “unique, anonymous and verifiable”. They went on to say that users will pay “for almost any transaction over the Net or World Wide Web at the same time you place it, using cybercash”.
It took me a few years to understand that bitcoin and other cryptocurrencies were in fact the phenomenon that the authors had described 20 years earlier. Once I got it I poured myself into any available material including “Mastering Bitcoin” by Andreas Antonopoulos.
The aspects that appealed to me included the pre-determined issuance or money supply (deflationary), the ability for an individual to hold value that is not linked to the economic performance of a nation state or decisions of politicians and bureaucrats. The global nature of these new digital assets and the explosion of innovation around this open-source digital money phenomenon also gets me excited.
I was also working in the National Payments System Department of the South African Reserve Bank (SARB) at the time. It became abundantly clear to me that I could help shape the central bank’s views on cryptocurrency.
JS: What unique challenges does South Africa (and Africa in general) face that cryptocurrency/blockchain could help with?
EE: I got a clear idea of how national and international payments worked at the central bank and in the existing financial market infrastructures. Almost every country in Africa no matter how large or small, rich or poor needs to have efficient and secure financial market infrastructure. To run these national payment systems is an onerous and expensive requirement which requires specialist expertise. Cryptocurrencies like bitcoin can help because they are digitally native and are open-source.
A lot of economies rely heavily on cash. Needing to do face to face transactions increases friction in trade. Carrying cash also makes the user susceptible to theft and violence. Cryptocurrencies can assist with these problems.
JS: In your new role as COO for iCE3X, what will be your top priorities?
EE: At iCE3X we are expanding and we are looking at getting talented staff and efficient processes in place to complement and support our growth. I will work alongside the CEO — Gareth Grobler — to help drive our growth strategy. Business opportunities and partnerships will be a focus of mine.
I’ll also be using my relationships with the regulators to keep them informed and work closely with them on this nascent growth market. Innovation in South Africa is a key growth driver in our economy and we plan to contribute positively.
JS: What advantages does iCE3X have in this market?
EE: iCE3X has been a trustworthy source for trading since 2013. Our knowledge of the local and international market is an advantage. This leads to key stakeholder relationships and business partnerships.
Our strong affiliation programme is a way to reward our users with lower fees.
Strong focus on our South African market allows us not to be distracted by being everything to everyone.
We also take data privacy very seriously, along with security and education. iCE3X succeeds by being open and available. We have a strong community.
JS: Some see cryptocurrency and the regulated economy as antithetical to each other (and even where they cooperate, may still be trying to subvert the other’s position). Is it possible to have a hybrid system where both can use their advantages equally?
EE: Ethical leadership in government is experiencing a dearth. Policies and institutions that encourage trade are keystones to our growth as a nation. Are we seeing ethical leadership, good policies and strong institutions? A lot of people who answer no to this question probably see crypto and regulation as being antithetical.
A hybrid system is already progressing. Perhaps crypto will allow citizens to claim a better social contract with bureaucrats and politicians in the near future. My bet is it will.
Launched in 2013, iCE3X is one of the best-known and busiest cryptocurrency exchanges in Africa. It supports bitcoin (BTC), bitcoin cash (BCH), ethereum (ETH), Cardano (ADA), DASH, dogecoin (DOGE), litecoin (LTC), monero (XMR) and zcash (ZEC) — as well as fiat currencies the South African rand (ZAR) and Nigerian naira (NGN).
Do you agree with Etsebeth’s positions? Feel free to sound off in the comments section.
Images via iCE3X, Pixabay
