We’re all in agreement that it’s going to be a big year for cryptocurrency. Looking back 2 years ago, most people probably thought crypto was dead. But they are stronger than ever meaning we should expect some sought of Cryptocurrency Regulation to take effect soon.
To be fair nothing that falls by 80% in a year is shouting longevity but here we’re. So, what bitcoin hasn’t gone to the ridiculous value it had before nosediving.
It’s proved itself and its climbing back slowly. Great news for the crypto world, and if that wasn’t enough, Facebook arguably the biggest tech company in the world, the controller of all what we like, search and see on the internet decides to join the game.
Regulators and legislators panic. On comes the regulations. Here are a few of the themes to look out for in 2020.
Cryptocurrencies May Kill the Current Money System
After Facebook announced libra, many fed chiefs are worried. The fact that unregulated currency is being used.
Traditional money is heavily regulated. By Cryptocurrency Regulation I mean people sit in a room and decide what is to be done. Governments are worried they might lose control and that crypto may run wild and bring down economies.
To be fair however the financial industry was doing this pretty well on their own before crypto was born. The 2008 financial crisis happened because of poor policy by the same regulators. So, the idea that crypto may lead to the fall of the money system doesn’t hold much water.
Cryptocurrency Regulation: Cryptocurrencies May Sponsor Illegal Activity
This has been a big hurdle for crypto to overcome. The fact that it’s untraceable means it’s attractive to those who are eager to scrutiny from the law. In practical, sense if you were to do anything dodgy and had to use a mode of currency and had a decent brain, bets are you’re using crypto.
Because of this many ‘traditional money people’ unfairly judge crypto. Yes, we can all agree that terrorism, human trafficking and all other vile behaviors are absolutely intolerable. I do agree that more could be done to eliminate this through Cryptocurrency Regulation. But certainly traditional banks have a bigger case to answer.
Cryptocurrencies Are A Danger to The Economy
Crypto re under high scrutiny from everybody. People are watching and waiting. Many invested and the bubble burst. If a lot of people had jumped on the bandwagon then.
We’d be looking at a real financial crisis. This is what has governments on edge. Because it would mean that money would be decentralized and the monopoly by central banks would be no more.
Cryptocurrencies Are Untraceable
Governments are worried about this and also due to the nature of the technology and how private it is. This further goes to enhance the propaganda been peddled about illegal activity. Regulators will want to tighten the noose on his fact.
But the majority of users use crypto due to its private nature. This is a fight many crypto companies will fight. The argument would be that paper currency is also quite hard to trace as well. If you manage to not go through a bank, traditional currency can also be a tool to illegal activities as well.
The Bigger Picture
In all honesty, cryptocurrency has a long way to go to overtake its traditional counterpart. But if you really look deep into all these regulations there’s a war shaping up.
The traditionalists and the futurists. Governments and central banks feel like they’re under siege. Finally, an opponent worthy enough to rival money, the commodity they have used to wild all the power they have. Hence crypto will face strong opposition to those trying to cling on to this. but with Cryptocurrency Regulation we can hope that it will be more embarrassed.