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Implications of Governmental Adoption of Cryptocurrency

A year ago, it would have been difficult to believe that major governments throughout the world would delve into the world of cryptocurrency. However, with last summer’s price explosion, nations worldwide have begun to approach cryptocurrency from a number of angles. While cryptocurrency was first conceived as a tool to arm citizens against financial institutions and governments, the space has evolved into one that has caught the curiosity and desires of select nations throughout the world.

Isle of Man, the tiny British Crown dependency situated between England and Ireland, was perhaps the first nation to embrace cryptocurrency. Its welcoming approach to crypto dates back to 2014, and represents perhaps the first location in the world to have enabled individuals to carry out their daily duties fiat-free, as a number of businesses across the island welcomed the use of Bitcoin. However, with last year’s explosion, the small island saw itself overshadowed by much larger counterparts.

The Race to Become a Blockchain Hub

Now, countries worldwide, led by Malta, France, and Switzerland, are vying to become global hubs for blockchain tech and cryptocurrency. All three have taken measures to cut cryptocurrency tax rates and create favorable regulatory environments for prospective businesses to move operations within their borders.

Malta seems to be leading the way, as it has won arguably the top business within the cryptocurrency space, Binance. The year-old startup, which eclipsed a valuation of US$1 billion in mere months, is in the process of moving its headquarters from Hong Kong to the gaming capital of the world. This move is poised to generate an immediate double-digit increase in the GDP of the Mediterranean island, and the long-term effects could be far greater.

Switzerland’s approach is also promising, as it’s already seen hundreds of cryptocurrency businesses flock to an area they are calling “Crypto Valley”. Banking constitutes a massive portion of the Swiss economy, and, as the banking sector is becoming increasingly threatened, the European nation is seeking to reinforce its economy with massive crypto activity. As a country that already operates largely as a cashless society, a future transition to cryptocurrency should be relatively seamless.

Compared to the other two, France still has progress to make. Recently, the nation slashed cryptocurrency tax rates by almost 60%. Additionally, the head of France’s ministry of finance declared “full and resolute” support for cryptocurrency. The French Tech Ticket, a funding grant and incubation system for tech startups, recently named its 70 recipients, many of which were blockchain-centric startups. By incubating promising initiatives, France is trying to build its cryptocurrency sector from the ground up.

Other initiatives

Venezuela’s Petro is perhaps the most interesting approach taken by a government thus far. The state-owned cryptocurrency, which held a sale for private investors last quarter, is an oil-backed stablecoin, with each Petro representing one barrel of oil. Petro is meant to allow Venezuela to bypass US sanctions in order to trade its oil with other nations and private firms through the exchange of Petro. Internally, it provides a medium of exchange for citizens that is not subject to Venezuela’s disastrous hyperinflation. However, Venezuela (at least openly) has not yet begun exchanging Petro with other entities.

There are a number of applications and components of cryptocurrency that enable activities not previously possible. It will be interesting to see whether cryptocurrency plays a symbiotic or adversarial role vis-à-vis governmental bodies worldwide.

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“Bitcoin (BTC) Prices Yet To Hit Rock Bottom”: Bitcoin (BTC) Technical Analysis (June 18, 2018)

With every slide in the cryptocurrency market, Bitcoin dominance increases. As a matter of fact, Bitcoin ball park control stands at 40 percent in the last seven days or so. That’s when bears took more than $30 billion despite supportive news from the SEC. Going forward, it could be worse for cryptocurrency portfolios because any break below $6,000 and we might see BTC valuation dropping 85 percent from its ATHs to $3,000. Let’s have a look at these charts: From the News It is attack after attack but in the case of BitGrail, ordinary account holders are set to suffer. A while back, this Italian exchange was hit by hackers who made away with $187 million worth of Nano coin. Even though the operations of the exchange took a hit, they resumed normal services a few days later. However, with formal announcement by the exchange that they were not in a position to reimburse user funds because they strongly believe hackers took advantage of Nano’s blockchain weakness, the Nano Foundation refutes these claims. We have temporarily disabled the BitGrail exchange pending further notice. — BitGrail Exchange (@BitGrail) May 2, 2018 This inevitably means the court is the only center of arbitration and now through the orders of a Florence Court, where bankruptcy petition for BitGrail is on-going, BitGrail’s digital assets are under state custody. We cannot make solid conclusion as the hearing continues. 3000 users of the #BitGrail fiasco have filed a petition asking an Italian court to declare the entities that operated the Bitgrail exchange bankrupt.https://t.co/x3wfor4qe1 — DeusExMachina (@d1rtydan) April 27, 2018 Then again the CEO of BitGrail has been clear that there is nothing since the exchange is following court orders. Regardless, it’s clear that the exchange is in a poor financial situation and probably won’t repay victims. As litigation continues in Italy, authorities in South Korea are planning on creating a special economic zone for blockchain companies in the city of Busan. “We need a place to concentrate on the cryptographic industry in Korea like the Crypto Valley in Switzerland” This comes at the back drop of the country’s initial steps of totally banning ICOs and fostering an environment that isn’t supportive for crypto traders in general. #SouthKorea intends to launch a #blockchain center in Busan city to incubate companies and projects working in the sector. Modeled as “#Crypto Beach,” the development is reportedly inspired by Switzerland’s “Crypto Valley” in Zug.#Bitcoin #btc $btc $bitcoin #ETH #EOS #ICX — Hitman (@Hitman637) June 17, 2018 Because of this, most blockchain start-ups in South Korea offer their ICOs in other countries. So, to prevent loss, the only approach is to thaw their regulatory grip by creating such blockchain friendly zones. Of course, all things constant, this is positive for Bitcoin in the long haul. Bitcoin (BTC) Technical Analysis Weekly Chart Bitcoin Weekly Chart by Trading View Talking of Bitcoin hitting $3,000 may be pessimistic but here is the thing: Any break below $6,000 this week or within the next month and it would be catastrophic for coin holders in general. The web might even spread considering the positive correlation between Bitcoin prices and altcoins as we have been seeing in the last couple of days. Besides, even Trustory CEO thinks BTC prices are yet to bottom out and unwind the effect of Q3 and 4 2017 Tether pump. Price wise, it’s clear that BTC prices are trending around a key inflection point, a double bottom as the weekly chart shows. Overly, bears are in charge and we can draw a simple trend line between Q1 and recent Q2 highs to demonstrate that. In our previous projections, any up-thrust that lifts BTC prices above $8,000 will mean bulls are in charge and buying in line with the new shift of trend is practical. Conversely, it will be a journey back to $3,000 if sellers break below $6,000 as we have mentioned before. Daily Chart Bitcoin Daily Chart by Trading View Announcement by the SEC on June 14 was by all means timely. As we can see from the daily chart, that’s right at the main support line and initial bear targets at $6,500. Now, our trade plan based on these new events proposes buying but only when buyers push prices ideally past $7,000 and for conservatives at $7,800. Of course, with the past three candlesticks moving within tight trading ranges, patience would be an asset and would mean buying only once our trade conditions are met. On the reverse side where sellers drive below $6,000 and it would be a slide to $3,000. The post “Bitcoin (BTC) Prices Yet To Hit Rock Bottom”: Bitcoin (BTC) Technical Analysis (June 18, 2018) appeared first on NewsBTC.

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