The Bitcoin revolution is here. Even though the Bitcoin adoption and usage is growing each day, the Bitcoin and cryptocurrency world is still stuck in a limbo as far as the regulations are concerned. Except for a handful of countries, none of the other countries have passed any definitive regulations regarding cryptocurrencies.
There are a few theories making rounds that explains the possible reasons for why the governments and central banks in these countries are maintaining silence with regards to Bitcoin regulations. Some of these theories say that
- The governments are still not sure how to deal with decentralized digital currencies like Bitcoin, so they are still in the process of understanding it to draft the regulations
- They are waiting for other countries to implement first, so that they can follow suit
- Bitcoin is being used as a guinea pig by the governments. They are observing the evolution of Bitcoin without interfering, so that they can learn about its lifecycle, advantages, disadvantages and challenges involved. This information will help them create the digital version of their fiat currencies in the future.
All the three theories seems plausible and as a Bitcoin enthusiast I wouldn’t want the governments to implement unrealistic draconian regulations that might hamper the growth of the Bitcoin industry. I would prefer that the governments across the world to consult with its people, regular Bitcoin users, Bitcoin businesses, experts in cryptocurrency and computers, economists and financial institutions to thoroughly understand the concept of Bitcoin and digital currencies, and its benefits to people and the country as a whole before implementing any regulations.
Also with respect to governments and regulatory bodies, blindly copying the regulations framed and implemented by other countries is not a good idea. Every country has its own requirements and challenges. It is not advisable to replicate any laws or regulations of other countries without making necessary changes. These changes should accommodate and address the issues facing the country, while keeping in mind the benefits for the country’s economy and population.
Countries introducing their own versions of digital currencies is a good thing, it will help the governments retain control over the currency, just like fiat currency in the present while offering the benefits of Bitcoin in terms of the speed of money transfer. It will also result in reduction in resources required to maintain the financial system, eventually reducing the costs of money transfer as well. On the other hand, it might result in the demise of Bitcoin.
Bitcoin has opened our eyes to how the future of the global economy should look like. Now that we know it, we will get there… with or without Bitcoin