In a world of unstable currencies, cryptocurrencies are already proving helpful in countries where fluctuations in local currencies are prevalent.
In Venezuela where the currency devalued by 99.4%. Many people transferred their saving into Bitcoin which enabled them prevent losses and even make a profit.
Last time, the bank accounts of several cryptocurrency firms in Singapore were closed. This led to questions about the future of cryptocurrencies in the country. Indeed, the actions and rhetoric of key players sent mixed messages, which further complicates things.
The banks involved were reluctant to explain their move, while authorities said they were reluctant to interfere. There was, however, some speculation that the bank account closures were related to anti-money laundering legislation.
Cryptocurrency traders in Singapore were not necessarily affected, as many had trading accounts overseas.
So what we are now seeing is increased usability for Crypto Currencies. As new crypto currencies get set up with new ecosystems, it continues to open up new markets and new users to the power of crypto. CCRBI has a unique ecosystem connecting it with over 15,000 different merchants so that is really opening up the world of crypto to the retail world.
John Rainey the CFO of Pay Pal has said that it is very likely the crypto currencies will become a popular payment method in years to come with them moving into the main stream.
With institutional investors now moving into the world of cryptocurrency and ICO being viewed the same way that stock market flotations once were you can be 100% certain that the crypto market will only continue to get bigger. As the institutional investor move in they will also expose their infrastructure to cryptocurrencies which in turn legitimizes it even more.
What can safely be said right now is that we are only really at the beginning of the cryptocurrency evolution. Many of the largest crypto exchanges are in the US, and traders tend to flock to the largest exchanges. In fact, you don’t even need a Bitcoin wallet or an account on crypto exchange to trade Bitcoin. Retail traders can trade both Bitcoin and Ethereum by opening a forex trading account.
In Europe, Estonia has already expressed an interest in launching its own digital currency. Russia is also investigating a “Crypto Ruble”. In fact, Russia’s Minister of Communications recently said if they didn’t launch a digital currency, their neighbors would.
The Singapore Monetary Authority has stated that it may issue new rules to regulate cryptocurrencies.
Their main concern is money laundering and ICO scams. Regulating cryptocurrencies is easier said than done. The central premise of digital currencies is that they are anonymous and decentralized. And, the tougher the regulations are, the more chance there is that the industry will be driven underground.
They will, therefore, need to come up with regulations which all legitimate parties can agree to.
Another issue facing authorities is deciding what asset class Bitcoin falls under. Is it a currency, a commodity or an equity?
Digital assets have attributes of all three. A token represents an equity-like stake in a protocol, but it can also be used to transfer value like a currency and is scarce like a commodity.
It may make sense for governments to agree that Bitcoin belongs to a brand-new asset class and needs its own legal framework. Trying to bring down or deter the operations of cryptocurrencies in this present information and financial technology age will categorically not come to fruition; as the world and its various activities (of which money is a major factor) keep moving towards technological advancement.
If there is one thing you can be sure about is that, Cryptocurrency is here to stay.