Despite the fact that over the eight years of their existence, cryptocurrency and blockchain technology regularly faced difficulties, they managed to evolve into a form that now poses a serious threat not only to the usual banking system, but to centralized control systems - payment systems, insurance companies, law firms and even governments.
It makes no sense for the modern world to close its eyes and hope that in a couple of years Bitcoin will burst like a soap bubble, recognizing its inability to long-term competition.
Cryptocurrency will remain, although it may take on a different form from the present. And governments should already prepare today for the recognition of digital money along with traditional ones, and here's why.
Most states are concerned about stabilizing the internal market
Many countries are not considering the idea of using blockchain technology for the global payment system, but are trying to apply it within the state. For example, the People's Bank of China is developing its state-owned cryptocurrency and hopes to become the first country in the world to have a government-approved digital coin.
The Netherlands have already created their own cryptocurrency for internal use in order to study the technology and its functioning in the real world.
USA has launched a pilot program based on Ethereum. European central banks are following a similar path, taking an interest in blockchain technology as a means of improving their internal infrastructure.
Political events cannot influence cryptocurrency
Central banks are still skeptical about the stability of digital money regarding its value, privacy, and protection against cyber fraud.
However, cryptocurrency continues to evolve. According to Coinmarketcap, the total ICO market is $ 150 billion , and bitcoin alone has grown by almost 400% in value since the beginning of the year, despite its tight cap in some countries. There is no doubt that sooner or later governments will have to develop clear policies aimed at using cryptocurrency, not banning it.
Blockchain is the perfect assistant for small businesses
Blockchain technology reduces the involvement of intermediaries, which include insurance agents, bank officers, lawyers, courts, and can significantly reduce operating costs, which greatly simplifies the conduct of the entire business.
A complete ban on cryptocurrency will not lead to its disappearance, but will only cause capital outflow from the country, which will ultimately destroy the economy and confirm its inability to keep up with the realities of the modern world.
The Topic of Article: Why cryptocurrency can no longer be ignored.