The British Virgin Islands are trying to take over the monetary space by establishing their own cryptocurrency. The asset would serve as the region’s national form of fiat, but how valid is the plan?
British Virgin Islands Constitute High Levels of Crypto Activity
China is a huge country with more than a billion people. While the region has had a relatively mixed relationship with crypto in the past, regulators appear to be growing more open-minded when it comes to the ideas of banking digitally, and a new law has passed making it easier for the country to establish a digital form of the yuan.
Facebook, on the other hand, is not a country, but rather a mega-corporation. The Libra project, as it’s come to be called, has looked to establish relationships in Switzerland so that it can build its banking presence and has been the topic of hot debate since it was first announced last June.
While many appear to be split right down the middle on the issue, the currency is on track for a 2020 debut, though Mark Zuckerberg – head of Facebook – has said that his company will be forced to leave the Libra Association granted it does not garner full regulatory approval.
What’s the difference between China, Facebook and the British Virgin Islands? Size, that’s what. China and Facebook are very big. A big country and a big company. The Virgin Island territories, however, are relatively small. They are comprised of a population of ex-patriots who have sought to go into crypto, though the region is widely underbanked, so perhaps the Islands have some sort of advantage in developing personal space within the crypto industry in that there’s lots of room to grow.
The Islands are situated within the Caribbean, which is home to a growing crypto arena. Among those who now call the Caribbean home is antivirus mogul John McAfee, who has made serious headway in the cryptocurrency industry by claiming that bitcoin will reach $1 million in the year 2020.
Establishing a Newfound Presence
Considering 2020 is right around the corner, it doesn’t look like this prediction is about to come true anytime soon, but who knows? 12 long months comprise 2020, meaning McAfee has 12 months to show us all why we should listen. Furthermore, 2020 is a leap year, suggesting he has one extra day to prove himself.
Approximately 50 separate territories make up the British Virgin Islands. The region has shown a heavy reliance on the U.S. dollar over the years, though according to Coin Shares, the Islands constitute one of the largest cryptocurrency markets by “dollar volume.”