March 25, 2022
By Anjali Kochhar
Covid is not the only wave that has brought the world together. It’s the cryptocurrency wave that countries across the world are joining these days despite the volatility of the market.
Shivam Thakral, chief executive of Indian exchange BuyUcoin believes that western countries are far ahead when it comes to bringing crypto into their daily lives.
“No one can stop an idea whose time has come and crypto is that idea. However, the pace of crypto adoption will depend on regulatory support and a crypto-friendly business environment,” Thakral told Blockchain Asset Review when asked about the global adoption of cryptocurrencies.
Most recently, Malaysia has dropped signals that the country is keen on adopting cryptos. Datuk Zahidi Zainul Abidin, the deputy communications and multimedia minister of Malaysia, has urged regulators to legalise certain use cases of cryptos and NFTs.
“We hope the government can allow this,” the deputy communications and multimedia minister of Malaysia said in Parliament on Monday when responding to a question about the government’s take on NFT marketplaces.
“We are trying to see how we can legalise this so that we can develop youth participation in crypto and assist them.”
In Arab countries, Qatar’s central bank has also hinted on plans to digitize most of its products and potentially develop and launch a CBDC, or central bank digital currency, joining the list of countries globally going digital. The central bank also plans to issue digital bank licenses.
Australia has also pushed crypto laws that may include breach reporting obligations, compliance with anti-money laundering laws and a strategy to classify crypto assets.
The list is becoming longer every day as countries around the world are showing a crypto-positive stance be it the Swiss city of Lugano adopting Bitcoin as legal tender or Indian government bringing them under the umbrella of regulations, especially with the new tax bill that was approved by the parliament on Thursday.
“As some of the most influential nations continue to acknowledge the importance and role of digital assets in today’s financial landscape, such regulatory policies will likely strengthen the industry — preventing illegal activities and injecting greater legitimacy and trust amongst mainstream and traditional investors, further cementing crypto’s position in finance,” CoinDCX Research Team told Blockchain Asset Review.
While this is a positive sign, another perspective could be–Will cryptos replace traditional currencies over time?
It’s an ongoing debate and many reports have been surfaced that predict both pros and cons of cryptos replacing fiat currency in the future.
A report by Futurism highlights that cryptos cannot be manipulated quite as easily as fiat currency, due to their decentralized and unregulated status. Besides, these could better support the concept of a universal basic income than fiat currencies would. On the other hand, the report also notes that the other scenario could be where we would be left with a world where everything will have to start from scratch if cryptos completely overtake the fiat currency.
Blockchain Asset Review spoke to several experts on the issue.
Jay Hao, chief executive of global crypto exchange OKX.com said, “It’s very natural for a technology to become obsolete and make space for the new and emerging tech. I feel traditional currencies will continue to exist in their digital version to keep pace with the fast-changing world.”
On this Thakral said, “Traditional rupee and digital currencies can co-exist and we should let the users decide which form of currency they want to use in their daily lives.”
This is about crypto’s long-term future. In the near term, the only hurdle for the larger adoption of cryptos could be the stringent government regulations.
While regulation is necessary for cryptos to exist, over-regulation of cryptos could throttle the innovation of digital assets.
“The regulatory hurdles pose the biggest challenge to the mass adoption of cryptos. I think central banks need to understand that crypto and blockchain are here to improve the global financial system and create a better experience for the end-user,” Thakral said.
Talking about the short-term challenges, Hao said, “I think the lack of blockchain infrastructure and lack of clarity on the regulation of digital assets will be temporary hurdles.”
At the time of writing, the global crypto market cap was up 2.16% at $1.96 trillion. Barring Terra LUNA and USD Coin, all of the top 10 cryptos were trading higher.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.