Part 2: How can crypto become the finance of the future?
New technology often evokes fear in people, especially if they can’t understand it. Today, we stand at the frontier of a new technology that could profoundly change our way of life. For many, choosing to embrace cryptocurrency or ignore it will depend on the answers to some key issues. Here we will examine two of the most polarising issues: regulation and sustainability.
Safety, Security, and Regulation
Many of us have fallen victim to identity fraud, but with a quick phone call, our financial losses are repaid within a few days. That is one of the advantages of having a central authority manage our finances. But what of crypto? It is autonomous, decentralized, and trust-less by its very nature, so when something goes wrong there is no one to bail you out. That is a big concern, but change is on the horizon.
There are over 100 different countries looking at ways to regulate cryptocurrency. The UK treasury has announced plans to regulate some cryptocurrencies including stablecoins later this year but has stopped short of confirming which ones specifically, and U.S. President Joe Biden recently signed an executive order to develop plans for regulating crypto. Although there are no definitive details, it’s likely to include cracking down on criminal activities like money laundering, which saw a 30% increase in 2021 from the previous 12 months.
The International Monetary Fund has also called for global digital asset regulation to defend against the risk of financial destabilization, including licensing and authorizing crypto asset service providers and separating regulation for crypto investments and crypto payments.
There is an outcry from purists about what the implications of regulation would be to cryptocurrency, especially the market value, but when regulation does come it could be a milestone moment for mainstream adoption.
Sustainability is no longer just a buzzword. Organizations and governments the world over are prioritizing it in their plans and business models. Bitcoin mining consumes a huge amount of electricity, approximately 150 TWh per year, and those who (read more)…
Check out our latest articles at coinpass Blog.
Visit our official social media accounts:
Start your crypto journey here.
Get your crypto rewards here.
#BTC #bitcoin #crypto #finance #coinpass