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Blockchain, artificial Intelligence and cryptocurrency are the ones that are trending on almost every platform where the financial market is discussed. As the digital currency and its blockchains have exponentially become a major disruptive innovation in the financial space, It is not uncommon to think that perhaps the end of traditional fiat currency is in sight.
Cryptocurrency have done a good job thus far in challenging the centralised system of traditional banking, as the number of transactions is increasing not from year to year but on a daily basis.
Crypto banks now offer a more favourable interest savings rates (up to 12%) than traditional banks, and how transactions are made hassle free than the latter is a huge bonus. The options of crypto assets available for trading all over the world is not only a gift, but a curse, as it is unregulated exposure means high volatility.
The lack of a central regulated system is the reason the government and banks are afraid of the crypto market. Unlike the fiat currency that government regulate via it banking network using the monetary policy, Crypto is powered and controlled by its users.
Hence, some countries are doing everything in their power to delegitimize the use of Crypto as they introduce their own digital currency.
The most efficacious way the government are trying to destabilise crypto is linking the asset to criminal activity.
Many news of criminals accepting Bitcoin as ransom payment have been written and published, in an attempt to spin a negative light to the relentless crypto mania.
Perhaps it is a valid point to highlight, but its users and investors are smart enough to know that these news pop up because the government cannot control digital currency as they did with fiat.
The thought of crypto creating more wealth alarmingly faster (and without the lending red tape criteria) than the traditional banks, calls for concerns to the government.
Without traditional banks, many jobs will disappear, as does the tax revenue banks and their employees’ pay cheques generate. Money transfer business would also disappear in a virtual world. Nobody needs a Western Union or its competitors if everybody is using Bitcoin or Ethereum.
This means loss of tax dollars to the government, and I am sure no stones will be left unturned to see the demise of crypto.
Will they succeed? Only time will tell.