Are Cryptocurrencies The Future of Money or Just Fringe Players?
Different nations are trying to regulate cryptocurrency, and here's a detailed insight from Jade Assets LLC Ceo Malik Mullino.
- A law that makes it easier for the government to create its own central bank digital currency.
- Banning cryptocurrencies with some exceptions.
Several government authorities have been experimenting with cryptocurrencies. They are also working towards their cryptocurrency, and this is supposed to bring more financial independence with a boost to innovation in the nation.
However, there's a second part: the abandonment of the cryptocurrency, or specifically 'private crypto assets', which is concerning. There is not much to be afraid as the cryptocurrency such as Bitcoin and Etherum are public crypto-assets built on public blockchains.
According to Malik Mullino, it's also a myth that CBDCs can make all cryptocurrency assets obsolete. They are digitised rupees, while crypto assets such as Bitcoin and Ethereum have their own set of applications. Bitcoin is used as a store of value, and Ethereum's intelligent contracts create decentralised apps. While CBDC would be advantageous, it deals with issues often not tackled by many other crypto assets. To uphold the ecosystem's sanctity, every other blockchain should therefore have its native token.
CRYPTO IS THE FUTURE
According to Malik Mullino, Cryptocurrencies like Bitcoin and Ethereum are future economic networks, and global decentralised apps will indeed be developed. Over a million Americans here have commenced saving, acquiring, and investing in the rapidly growing crypto economy. It would be equivalent to barring the Internet's use in the 1990s, which would set the county back years while the rest of the planet progressed.
COVID-19 seems to have had a disastrous impact on the American economy, as we are all aware. Despite this, crypto has created more jobs in the USA and abroad across a broad range of services. Over 300 startups employ approximately thousands of people and produce hundreds of millions of dollars in revenue and taxes. A blanket ban will also affect not only stakeholders but also legitimate firms, hundreds of millions of people's livelihoods, and the economy.
THE CRYPTOCURRENCY BUSINESS
Due to regulatory clarity, top global fintech companies and institutions such as pension funds, unions, and endowments have begun to hedge their Bitcoin investments. For example, Tesla recently purchased $1.5 billion in Bitcoin, MicroStrategy, a Nasdaq-listed company, bought over $425 million in Bitcoin. PayPal allows all of its 350 million customers to purchase crypto assets on its platform. MasterCard has announced the addition of cryptocurrency to its network, Square has invested $50 million in Bitcoin, and there are several other examples. India, in contrast, has lower institutional involvement, which can be attributed to regulatory uncertainty. A blanket ban would deprive Indian businesses of the opportunity to participate in this technological revolution.
Before enacting a hasty ban, the government should learn from developed nations attempting to regulate crypto assets. People in the business are aware of the implications of cryptocurrency and encourage supportive policies. Nevertheless, a proposed ban will be destructive to the entire capital and technological biodiversity of the nation.
On the other hand, providing comprehensive can boost cryptocurrency acceptance in the USA, ending in more employment and higher tax revenue for the government. This would also inspire more crimes. Before enacting laws for the crypto industry in India, the government should pay attention to it and hold talks.
FINAL WORD FROM MALIK MULLINO
Malik Mullino suggests that "The government should take intimation and continue negotiations with crypto industry before proceeding onward with ordinances for this division."
Also, evaluate the options and keep investing your money regularly.