What Is The Politics Of Bitcoin?

politics of Bitcoin political support vs nations banning cryptocurrency use

It is not easy to find a common ground between cryptocurrency and politics when the decentralization of assets is related to the system. Regulators often find the necessity to add the digital currency or guide for bitcoin in the global economy but the general public being more knowledgeable about cryptocurrency finds the exact voice of reasons against this centralization. Central authorities must consider this as a part of governance and bend the rules around it. Legal frameworks which seem to be set up by the right wing parties in power are not quite conducive to buying and selling cryptocurrency. As more and more G20 nations are ready to support the entire scheme of cryptocurrency, the two spheres are entwined to their very roots. 

Right now, politics and cryptocurrency need a common ground that can incorporate the digitalization of personal belongings. There are politicians who advocate Bitcoins and there are opposing parties as well. Hopping into these details, one will get to know the views of either side. 

On Advocating Crypto And Bitcoin 

Most countries lack the machinery in the legal system which can declare digital currency to be legal. Bitcoins are a hush-hush topic in most countries because of the controversies around them. The leading political voices which advocate the use of Bitcoins include Benjamin Netanyahu, the prime minister of Israel. He is seconded by the Minister of Science and IT in South Korea, Yoo Young-min. The reputable parliaments like the UK, the US, and Sweden have also declared their open support to the digital economy. Even communist Russia’s Vladimir Putin expressed his interest in bitcoins. He has gone as far as asking the lawmakers to stop disrupting the flow of technology as Bitcoin mining expands in Siberia. India on the other hand is very anti-cryptocurrency and is borderline banning it altogether. 

However, it must be noted that these voices cannot be the sole advocates of Bitcoin. It is not quite supported by the right wing leaders and the ex-president of the US, Donald Trump was a prolific speaker against the use of Bitcoins and the current U.S. Secretary Of The Treasury Janet Yellen is anti-cryptocurrency as well. The relationship between cryptocurrency and politics is long embittered. It will take several years for these fields to come to the same page. 

Dislike For Cryptocurrency 

Digital coins are decentralized. It is not possible to provide such assets for the people as the government tends to keep a very sharp eye on the overall belongings. It is hard to regulate and control the assets when they are in digital form. What will be the tax implications? What will be the Tariffs? How will the traditional economic system relate to this change? These are the questions every government has to answer when cryptocurrencies are related. 

Governments often dislike the system of bitcoins as it reduces their control over the assets of people. This is often treated as the behavior of right wing extremists. The left wing advocates believe in the sharing of assets. Still, it will take a long time for politics to endorse the use of bitcoins. 

FATF Standards For Bitcoins 

The Financial Action Task Force or FATF is the system that deals with the threats related to large-scale money laundering and terrorist funding. The organization is quite well informed about the overall situation of the global economy. It has jotted down some regulations that can be considered as ideal cryptocurrency standards for the G2O nations. Every nation does not have a stand about FAFT. Most organizations are worried about crypto adoption because it can lead to greater financial fraud in society. 

Facebook Libra 

The impact of Facebook Libra cryptocurrency states some negative thoughts of the financial leaders about cryptocurrency. German regulators have raised questions against the overall system of digital currency. The EU politicians have asked for more control over the social media platform as well to clearly differentiate the line between cryptocurrency and politics. 

Final Thoughts On The Politics Of Cryptocurrency

There are only two ways which can understand the overall relation between cryptocurrency and politics. BTC and crypto either have to be regulated or they have to be prohibited. Encouragement of the system will come only if the measures of security are very stringent. Cryptocurrency is way different than the traditional currency system. It is natural to see that the politicians are unable to agree with this new and not obsolete system of currency. 

Regulations of bitcoins are extremely essential to heal this rift. It will be better if politics accept cryptocurrency with open hands rather than trying to block the advancement of technology.

Bootstrap Business Blog Newest Posts From Mike Schiemer, Partners, And News Outlets