Cryptocurrency has been around for years, but due to the coronavirus pandemic, many countries are finally seeing the advantages of digital currencies. The problem is, there are differing views on the subject. Some governments have embraced this new technology, whilst others believe it to be a risk.
Cryptocurrency uses ‘blockchain’ technology to move it around. Blockchain is a decentralised technology spread across many computer-based networks that manage and records transactions. This means all transactions are a matter of accessible public record to those with the knowledge of how to find them. This also means that transactions are not controlled by any central authority such as a bank, yet. Cryptocurrency is therefore currently largely immune to government control and interference, making it a controversial subject.
There are over 2,200 different cryptocurrencies traded, the main ones being Bitcoin, Litecoin, Ripple, and Ethereum. There are many online merchants that accept Bitcoin as a form of payment, whilst other smaller currencies are not as widely accepted. An example of a popular brands using cryptocurrencies is Apple who has authorised at least 10 different cryptocurrencies as a form of payment on the App Store. In addition, Paypal has adopted cryptocurrency as a form of payment.
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Cryptocurrency and government approach
Due to the decentralised nature and blockchain technology, when cryptocurrencies began to increase in popularity many central banks were quick to issue statements that they did not support cryptocurrencies. Some governments went a step further to ban cryptocurrencies altogether. We are now seeing an increase in the acceptance and use of digital currency. Many countries are creating virtual sandboxes to allow further development and observance. Importantly, we are seeing both the appearance and in some cases increase in regulation of cryptocurrency by way of legislation.
Cryptoregulation tracker
In order to track the different approaches, we have created our Cryptocurrency Regulation Tracker. This new facility looks at each country and their approach to cryptocurrency, any legislation or warnings on its use, and their overall approach. We also expanded this to include a U.S. Cryptocurrency Regulation Tracker, so you can now look at the way different US states have approached cryptocurrency.
Take a look at our tracker using the button below, you may be surprised at some of the differing approaches!
