Regulators Working Their Way across the Globe to Avoid Illicit Use of CryptocurrenciesApril 24, 2019
Global cryptocurrency is the vision of those who like to avoid the intervention of the governments and the banks; however, that is something that will never happen. While it is true that governments will not allow such a thing to happen, the idea of a single global currency is impractical and economically unwise.
The financial health of a country is determined by the value of its currency. When the economy is working poorly, the government which is in control of its currency will be able to print more money. The currency becomes cheap, and therefore there will be an increase in tourism and foreign investment. In cases where the economy is doing well, the government can decrease the supply of the currency. Therefore, when the government has control of its currency, it will be able to manipulate the money supply to suit the economic conditions of the country.
If there will be one global currency, when there is an economic crisis for a particular nation, they will be having difficulties dealing with the situation without any kind of control over their monetary policy. Therefore, it is not practical to run the economy of all nations with just one global currency.
So, when it comes to cryptocurrency, it makes sense to have tokens like Bitcoin, Litecoin, Ethereum, Stellar Lumens, TCAT tokens and each one of them with their unique financial concepts and varied values.
Governments will begin to choose cryptocurrencies in order to help themselves. Particularly to save their own economies from failing completely. Venezuela is one such case. The Venezuelan Petro is real, and the citizens of the country are beginning to trade it. During the economic crisis of Venezuela, Bitcoin worked as a lifeline.
In Switzerland, Swiss lawmakers have included cryptocurrencies in an adapted form through a voting process. This was done in order to avoid the illicit use of cryptocurrencies.
The vote requested that “procedural instruments of the judicial and administrative authorities should be adjusted so that they can also be applied to cryptocurrencies.” Giovanni Merlini introduced this motion in the first place.
Switzerland has a cryptocurrency friendly jurisdiction. This country is where several cryptocurrencies and foundations are domiciled.
Thomas Lee stated, “Will the next alt-season be as strong as the past? Given there are probably the only ~50mm active wallets (vs. 5 billion Visa/MasterCard accts), we think crypto still early in the adoption curve. So it should be similar.”
There is a recent prediction that nearly 1.4 Billion population of China will be using cryptocurrency in nearly 20 years from now.