It expected that the world financial authorities would offer strict regulation of the Crypto-currency at their G20 meeting this week. Instead, they surprised investors with cryptocurrency, doing virtually nothing. There is an obstacle they will face if they are too zealous to control the crypt.
New and More Important Calls
They are too busy dealing with the inevitable trade war. Therefore, they removed crypto-regulation from the agenda and postponed it until the next G20 meeting in July.
Moreover, sooner or later they will also have to deal with the growing unrest of the global conflict between East and West the still hiding instability of the global financial system, their dependence on the ever-growing accumulation of debt, the undercapitalized banks in Europe, and much more.
The joint efforts of most countries are needed
Cryptocurrency has no borders. Thus, as long as the regulation not efficiently coordinated among all countries, it will be meaningless.
The fact is that it is already quite difficult for one government – be it Washington, London, Brussels or Tokyo – to reach a consensus on what to do with the cryptocurrency. It will be even more difficult for the global community to unite.
Consider, for example, China’s attempt to “ban the crypto” in September 2017.
China said “No” to the original coin offerings (ICO), and they said “NO” to the crypto exchange. Result? The business moved to the offshore. Most large Chinese exchanges packed their bags and transferred their operations to other, more friendly jurisdictions.
Of course, the initial reaction was panic, and the markets began to fall.
HOWEVER THROUGH SEVERAL WEEKS AFTER THE CHINA’S PROHIBITION HAS ADVISED, CRYPTO ALREADY HAS NEW RECORD MAXIMUMS. BETWEEN THEM, THE ICO TEMPTS DO NOT SLEEP ON THE IOTA
Can you think that China was just a third-party observer and did not matter much? But this is not so! Before the ban, the country owned a considerable market share, more than even the US. Even today, despite the ban, there are reasons to believe that everything is as it is now.
There will always be countries that will benefit from the crypto.
Even the coordinated efforts of all the leading nations will not stop the crypto. Middle-sized many nations, especially those who feel themselves out of the elite clubs G7 and G20, are much more susceptible to accepting cryptocurrency. Therefore, even if it was physically possible to prohibit cryptography or impose a rigid regulatory regime in some parts of the world, it is impossible to do this everywhere.
CRYPTO IS MUCH MORE THAN MONEY. THAT IS SCIENCE AND TECHNOLOGY. AND WITH WHAT IT IS IT POSSIBLE FOR ANY CENTRAL ORGANS TO HOLD THE PROGRESS OF SCIENCE OR THE EVOLUTION OF TECHNOLOGIES?
Known that they tried to do it from time to time! Roger Bacon, Girolamo Cardano, and Galileo Galilei are just three goals that come to mind. But after that, they very soon failed.
You see, the very concept of “cryptocurrency” is wrong. Instead, we should treat it as a distributed database technology (Distributed Ledger Technology), which shared between different players and institutions.
These technologies represent a new, scalable way to reach billions of people in a consensus. They will change the processes of making collective decisions that underlie civilization.
The consensus is necessary to ensure that laws are observed and respected to determine and recognize the borders of the country, to establish and accept the powers of the government and for money that must be valued and exchanged for goods and services.
Money, power, nations, laws, hierarchy, responsibility are all based on different manifestations of consensus.
Now, the technology of Distributed Ledger Technology provides an entirely new, more efficient, more universal and more democratic way of achieving this consensus. Thus, it is altogether constructive and fundamentally destroys the way societies make a broad, comprehensive agreement.
If these concepts seem abstract, this is because this technology is perhaps the most profound change that we have seen since 1800 BC. It was then that the Hammurabi Code created the basis for Sumerian law in the first state known to humanity.
The technology and its consequences for the development of society are not fully understood
Even among cryptographic visionaries, it’s too early to predict how all this will work. For officials, it is still more confused.
On the one hand, some individuals in governments still treat the crypto as a speculative bubble. They turn a blind eye to the technology that lies beneath its surface.
On the other hand, some of them want to learn how to take, form or use this megatrend.
Most of them are somewhere in between, beginning to realize the potential of the Distributed Ledger technology.
BUT THEY CHOOSE THE CAUTION APPROACH “WAIT,” AS THEY TRY TO UNDERSTAND HOW THIS TECHNOLOGY MAY INFLUENCE THE SOCIETY. THAT was AN UNBELIEVABLE REASON WHEN THE G20 POSTPONED THE CONSIDERATION OF THE QUESTION
Unlike the authorities of feudal times, they understand that prohibition or excessive regulation will merely disable innovation. Few will enthusiastically continue this impasse. And those who do this will be immediately left behind by countries that can do this or just allow this to happen.
A big, glaring exception to all this: unregistered ICOs, in which there is both a need and a clear path of regulation.