Cryptocurrency has seen an unparalleled growth in the past few years. Starting off with Bitcoin, the crypto world hasn’t kept itself limited to the single digital token but has led to an establishment of several other cryptocurrencies.
The sector has been growing robustly, owing to growing interests of natives to make easy profits in short-term, a rate which equities and other financial assets failed to provide all these years. While others see the industry as a revolution in the financial sphere that could lead on to cover the inefficiencies of fiat money and provide the world with newer opportunities to invest and grow mutually.
The other side of the cryptocurrency hasn’t been pleasant especially for governments. The rise in interest in cryptocurrencies have also attracted unwanted attention of criminals across the globe who could easily trade their illegal goods and services while remaining anonymous. Criminal activities haven’t been limited to sale of illegal goods and services but has also extended its hands to speculative frauds like scamming people by offering investment opportunities in digital coins online that could make them “easy money”.
In such a dynamic situation, it is not hard to estimate that the government’s involvement in chiselling the future of digital coins and other crypto asset has been sustainable.
However, it is noteworthy that the enforcement of regulations on cryptocurrencies wouldn’t considerably put its future in danger. The blockchain technology working behind the cryptocurrencies has been a game-changer in speeding up the transfer of money in a safe and secured manner.
One suggestive way of harnessing the benefits of cryptocurrencies while keeping its use in control is that the states or countries develop their own cryptocurrencies.
Recently, Seoul City unveiled S-coin, a city’s cryptocurrency that could be used in social and welfare programmes around its geographies.
Last year, the government of Dubai launched emCash currency, a blockchain based currency that could be used by public to buy everything starting from a cup of coffee to private jet using a near field communication.
Singapore’s central bank have announced that it would be studying the developments of cryptocurrencies- measuring its risk and risks.
The regulation is inevitable keeping in mind that the risks the new technology poses could easily outweigh the materialistic gains it tends to provide.
The future would see whether cryptocurrencies remain organisation-specific or region-specific.