The biggest bitcoin news is that the infamous coin is once again seeing a bullish turnaround, where other cryptocurrencies and Stablecoins are making a renewed impression. Entire countries are heavily considering, or have already implemented, their own digital currencies. Household names like Facebook are promoting their own cryptocurrencies, and just about everyone still seems thrilled with the capabilities of blockchain technologies.
Perhaps because of this continued adoption despite what mainstream media keeps plugging into bylines, governments worldwide are taking some swift action for bitcoin regulation and they’re using 2020 as their starting blocks. Keep up to date with all crypto news with huge websites like Bitcoin News, so you don´t miss out on any of these regulation updates.
Bitcoin News: Governments and Crypto
Global governments and legislative authorities are having trouble agreeing on seemingly everything these days, and bitcoin is definitely amongst the tumultuous rumblings. Where some countries fully embrace cryptocurrencies and their associated technologies, others outright ban them, with a vast majority of the world stuck somewhere between those two extremes.
Bitcoin and most other cryptocurrencies are designed in near direct juxtaposition to fiat currencies. Bitcoin cannot be artificially inflated, there is no centralized authority, and the ledgers are fully public. This means that the responsibility of the valuation of bitcoin is on bitcoin itself- which can pose a risk to the control that governments wield over their country’s finances.
One of the reasons that standard currency is so incredibly unstable is that governments can literally print money at their own discretion. They can increase interest rates and sway market values just about anytime they want. If you’re ever curious as to how unrealistic most stock values are, read up on Enron. Bitcoin and Stablecoins introduce a dangerous precedent to many agencies- a currency that cannot be manipulated, no matter the need.
Bitcoin News: Crypto and Criminality
Another legislative drive that most agencies cite as their main objective for tightly regulating bitcoin is the inherent criminal availability of anonymous currency systems. Noting concerns over the historic use of cryptocurrency and dark web illicit activities. However, fiat systems have also been historically used to support illicit crime and terrorism schemes, suggesting that criminals may just exploit any system they can reach.
The main problem with bitcoin isn’t that it’s impossible to stop criminals from using it, it’s that it’s a fairly complicated and new system that most people don’t understand- which means that gaining control through the contrived fear of criminality is one way for governments to shrug the onus of transparency off under the guise of public safety.
In countries like Algeria and Bolivia, cryptocurrencies have been outright banned due to the precarious nature of creating regulation. China heavily regulates its crypto scene and the US isn’t far behind, with most states treating bitcoin like an asset that requires disclosure and crypto businesses must be licensed and evaluated annually.
Bitcoin News: Asset or Currency?
Other countries are moving the ball altogether with places like Dubai, Venezuela, Sweden and Japan having their own national digital currency. Some aiming to go completely cashless in the future. Recent developments in crypto tech have created systems that don’t rely on miners to log transactions. Creating greener coins and fool-proof formats.
Concerns have been raised over the global marketability of these coins however, as crypto in and of itself is designed to be global and non-manipulable. Which could leave global power structures in a bit of a pickle. Embracing Stablecoins as a national currency could essentially have the same effect as the entire world going back to the gold standard. Leaving many current economic structures poised to crumble. Which might not actually be a bad thing.
Regardless of how any country is coiled to attack the cryptocurrency conundrum, you can bet green money that each legislative agency will have something to say about it this year. Every crypto user and enthusiast should keep two eyes firmly locked on any monetary policy that reaches out to bitcoin and make sure that scrutiny is employed with any proposed measures.