[Economic View] If Charles VIII had advanced into the coin market

[Source] https://www.edaily.co.kr/news/read?newsId=01292326635776856&mediaCodeNo=257

 In early 1494, when Renaissance culture was at its peak, Charles VIII sent a letter to Pope Alexander VI claiming the right to succession to the throne of the Kingdom of Naples in southern Italy and threatening to invade Italy if he did not recognize it. However, the Pope did not admit it, and in early September of that year, Charles VIII began to move south across the Alps with 17,000 French troops and 8,000 Swiss mercenaries. After that, he occupied Florence in mid-November without any major battle, and entered Naples in February 1495, just six months after Rome on December 31, and Charles VIII became the king of Naples.

Then, the Pope and the Republic of Venice took the lead and formed an alliance against France. Charles VIII's Naples garrison won a major victory against the Allied forces in a battle at Porbono in July 1495, and even defeated the Spanish expeditionary force. However, despite numerous victories, the French army failed to achieve its goal of conquering Naples, exposing Italy's inability to defend itself. Eventually, Italy, the wealthiest region in Europe at the time, fell into endless war between various powers, and France lost its influence in Italy, bringing the Renaissance era to an end.

Charles VIII's expedition to Italy has two implications for both existing and new digital asset market operators ahead of the implementation of the Digital Asset User Protection Act.

First, technological superiority or better organizational capabilities do not guarantee goal achievement. Italy's defeat was caused by a coalition of various city-states, each with different interests, unable to establish a clear direction and concentrate their efforts. During the battle, they showed scattered movements, focusing on acquiring loot and neglecting to support other allies. The French army also relied heavily on Swiss mercenaries, but it moved in accordance with one goal set by Charles VIII and showed a formidable advance speed, winning every battle. 

Second, even with a clear goal, if fail to take consistent action, the opportunity will be lost. Charles VIII had occupied Rome before the escape of Pope Alexander VI, but was content with free passage to Naples, the appointment of two of his close relatives as cardinals, and the keeping of the Pope's son, Cesare Borgia, at his side as a hostage. He was unable to obtain approval from the Pope for his right to succeed to the throne of the Kingdom of Naples or for his plans for a crusade. In the end, as Charles VIII's army marched toward Naples, Cesare Borgia fled, and Charles VIII, fearing a supply cut due to the formation of an anti-French alliance by Alexander VI, had no choice but to withdraw.

There are two main implications that will apply to digital asset market operators after the implementation of the Digital Asset User Protection Act. First, it must be understood as a change in the business environment rather than a simple change in the institutional environment, and second, it is necessary to clearly determine which areas to focus on and which areas to give up.

The Framework Act on Digital Assets stipulates the concept of digital assets, the concept and business methods of digital asset business operators, and the regulation of unfair transactions, so it appears that market manipulation and unfair trading activities can be controlled to some extent. The interpretation is likely to refer to the interpretation of unfair trade practices regulations under the Capital Markets Act. In this case, digital asset market operators check whether they will be able to provide existing services smoothly, who will be the new customers who will enter due to changes in the legal system, and whether they will be competitive even if market participants with large capital and organizations enter and need to focus efforts on that area. 

For new entrants, entering an unfamiliar market may unexpectedly lead to more opportunities. However, we must not forget that Charles VIII also advanced to Naples and was isolated after receiving only recognition from the Pope and a promise to appoint a close relative cardinal, in addition to the original purpose of conquering Naples. If Charles VIII had focused on his initial objectives at the time - the right to succeed to the throne of Naples and planning a crusade - and received approval from the Pope, he would have been able to weaken the cause for the other powers to unite.

When large institutional changes occur, appropriate goal setting must be done in advance. We must remember that it is too late when changes are already felt and we will have to compete hard afterwards.

Copyright © 2023 Alchemic Investments Co., Ltd. All rights reserved.