Steem Crypto Challenge Month #4 : The Future of Cryptocurrency

Hello Friends , It's @besticofinder here. I thought of writing a more detailed review on the future of crypto currency of my country Sri Lanka. I'm going to discuss this topic under following sub topics.

Content

1. Is awareness of cryptocurrencies increasing in Sri Lanka ?
2. How is the response of Sri Lankan government to crypto currencies ?
3. Are new laws and regulations being introduced ? How they affect the growth of cryptocurrencies in Sri Lanka?
   3.1 Crypto currency legal status in Sri Lanka
4. Positive and Negative facts about future of crypto currencies ?
5. How crypto currencies will support the future society?

1. Is awareness of cryptocurrencies increasing in Sri Lanka ?

Source

The public awareness of crypto currencies or digital currencies is really positive in Sri Lanka. We can clearly identify that Central Bank of Sri Lanka (CBSL) is with a positive attitude on crypto currencies when considering the recent actions and statements. We all have a general idea about what is a crypto currency. It’s a virtually created / digitally created form of money where the value is defined by developers and used in their own ecosystem. We can give more common examples such as Bitcoin , Ethereum, Ripple , Steem etc. These digital currencies use a decentralized architecture with P2P transactions. There is not central authority to regulate or control the transactions and no one knows who did them. The network is fully anonymous and decentralized. The values of these currencies are not controlled by any assets or authority and no regulatory framework. The only concern Sri lankan government and people have is these crypto currencies are used for illegal activities. One such recent example is Easter Attack on Sri Lanka by ISIS. So they had used bitcoins for their transactions. Other than that government and people are full positive and with knowledge of this crypto currency and block chain technology.

2. How is the response of Sri Lankan government to crypto currencies ?

According to my point of view, Sri Lankan government have a positive view on crypto currencies. In 2017, The Central Bank of Sri Lanka (CBSL) appointed two different research committees to find the potential of crypto currencies and blockchain technology in Sri Lanka and how they will affect the country. The two reports were positive and also they had highlighted the negative aspects of crypto currencies too. And Sri Lanka’s Information and Communication Technology Agency (ICTA) gave recommendations to sri lankan government to explore the capability of blockchain technology in security and personal data management. And at that time that was already used by some companies in Sri Lanka.
The officials stated that ..

Maybe the government should try it out it for secured data storage in verticals like healthcare and for storing legal records since it ensures high data protection .We should not wait till a stage where countries like Dubai and Singapore start adopting it in future and cryptos become like a US Dollar in the long run but be more proactive. If we do that then we will be starting to change regulations at that point and miss the bus

Reference 1

As a recommendation of the Blockchain committee, a Blockchain working committee has been established to present a blockchain strategy for Sri Lanka for selected areas of the economy. The Blockchain committee is also an inter-industry committee which includes several Sri Lankan companies that are already developing blockchain solutions at an international level. It is expected that this collaborative effort will reap positive and tangible results that will increase the speed, efficiency and security of digital transactions. - K. Ambagahawita, Director of the Payments and Settlements Department , Sri Lanka

Reference 2

So the government have positive view on crypto currencies and it's very clear that future of crypto currencies will be stable in sri lanka as it's gaining exposure day by day.

3. Are new laws and regulations being introduced ? How they affect the growth of cryptocurrencies in Sri Lanka?

3.1 Crypto currency legal status in Sri Lanka

Bitcoin or any other cryptocurrency is not defined by the Sri Lankan law. That’s mean there are no any legal regulations for any crypto currency in Sri Lanka. But there are general law to regulate financial actions for terrorism, pyramid algorithms (Multi-Level Marketing ) etc. As I mentioned above the CBL is supportive to crypto currencies. But they haven’t take any considerable action regarding that. They haven’t even tried to consider regulation them at least to some amount. Sri Lankan government considers it something in future. They do not expect this change in near future. But the peoples side is totally different. It’s well known that sri Lanka is a country with literacy rate of 96.3%. And mobile phone and internet usage is really high. People are well aware about bitcoin and other crypto currencies. I think the status of the country regarding the crypto industry will be changed before governments expectations

3.2 How they affect the growth of cryptocurrencies in Sri Lanka?

Source
As the Sri Lanka haven't defined any laws for crypto currencies, selling , buying , organizing ICO's are not against the law of Sri Lanka. I think this will affect very positive for the growth of crypto currencies in Sri Lanka. And currently there are lot of crypto related communities in Sri Lanka with a young crowd. People are gathering around this there is no any legal issue for this industry currently. Let's see how it goes..

4. Positive and Negative facts about future of crypto currencies ?

Positive Facts	Negative Facts
Cost effective. The fees for the transactions are really low. Most of the time it is less than .5%. No middle man	Risk of digital crimes or hacking. Annually lost of crypto currencies are lost due to hacking.
A very good alternative to fiat currency. Fast transactions and protects privacy	No one to regulate or support. The user have to take the full responsibility of his/her money
A crypto currency based system can't be controlled/restricted by a government or any authority. You have 100% freedom over your money.	Intermittent nature of prices - But this is not common for every crypto currency. There are stable coins now for the people who want only to use crypto for transactions.
Can do transactions globally without any country boarder restrictions , bank regulations or any authority	Inexperience is a huge disadvantage, when considering fiat money , it has used for centuries and every one is aware of using. But the story is totally opposite for crypto

5. How crypto currencies will support the future society?

Crypto currencies will change the whole world and disrupt lot of industries in the world such as banking industry , remittance industry , micro payments and whole financial system we use currently.