The World’s View of Cryptocurrency and Blockchain Is Rapidly Changing – Times of India

Over the past few years, cryptocurrencies such as Bitcoin have been the subject of much debate among regulators around the world. While a few critics of the technology have long held the position that cryptocurrency cannot compete with fiat currencies due to their decentralized and distributed nature, many are now realizing its sheer potential in use-cases such as cross-border trade and global financial inclusion. Governments are no exception to this, with many now suggesting, and even already developing, state-backed digital currencies to compete with the likes of Bitcoin.

Governments Take a Positive Stance on Cryptocurrencies

China famously termed initial coin offerings illegal in September 2017 and proceeded to clamp down on cryptocurrency exchanges operating in the region. Prior to the ban, the Chinese Yuan accounted for almost 90% of global cryptocurrency trades. In 2018, however, The Peoples Bank of China (PBOC) announced that the Yuan was being used in a mere 1% of Bitcoin transactions. Since then, however, several rumors surrounding the PBOCs plan to launch a state-backed digital currency have emerged. The central bank digital currency (CBDC) will likely be backed by the Chinese renminbi fiat currency and may even replace notes and coins in the future.

Countries like Japan, France, and Portugal, on the other hand, have made cryptocurrency trading much more attractive and accessible to the general public. Japan, for one, was the first nation to allow cryptocurrency to be used as a payment method and has since regulated the ecosystem to curb rampant fraud and hacks at various exchanges operating in the region. France and Portugal, meanwhile, have announced that crypto-to-crypto trades will not trigger a taxable event. The latters government has even exempted cryptocurrency from capital gains taxation.

Banks Embrace Blockchain, Tokenized Future

Even at the institutional level, banks, hedge fund management firms, and individual investors have reversed their cynical approach to the cryptocurrency market and are now actively embracing the technology.

On several occasions, JPMorgan Chase CEO, Jamie Dimon, claimed that cryptocurrencies, including Bitcoin, were fraudulent schemes that would eventually blow up. Dimon even went as far as stating that he would personally fire any JPMorgan trader who was trading Bitcoin. A few short months later, however, Dimon backpedaled in an interview with Fox Business, stating that he regretted making those comments and that he was aware of the potential implications of blockchain technology and the cryptocurrency ecosystem.

In 2019, JPMorgan Chase announced that it was developing its own digital currency called JPM Coin. Each token will reportedly be pegged to the value of one US dollar. In its JPM Coin announcement post, the bank echoed Dimons sentiment by stating, We have always believed in the potential of blockchain technology and we are supportive of cryptocurrencies as long as they are properly controlled and regulated.

Bitcoin: A Hedge Against Geopolitical Turbulence

Individual traders that typically deal with stocks, precious metals, and other traditional asset classes have also taken a keen interest in the crypto market. American investor, Anthony Pompliano, has repeatedly voiced support for Bitcoin, stating that 100% exposure to fiat assets is a bad idea due to the risk of hyperinflation or central bank failure. Given that countries like Greece, Zimbabwe, and Venezuela have experienced significant financial turmoil over the past few years alone, many believe that Bitcoin serves as the perfect diversification tool.

Due to the US-China trade war, many institutional investors are moving their funds away from the stock market into more stable asset classes. Founder and CEO of Digital Currency Group, Barry Silbert, said, Its certainly interesting that that price [of Bitcoin] started its acceleration, moving up and to the right, when the trade discussions broke down.

Adoption and interest in the cryptocurrency market has also been sparked by decentralized applications like Alluva that offer the ability to participate in the digital currency ecosystem without any investment. Alluva, for one, is building the worlds largest analyst network by incentivizing individual investors for accurately predicting the price potential of various cryptoassets, and providing institutional investors the data they need to boost transparency in investment within the sector.

As the cryptocurrency and blockchain ecosystem continues to grow, it remains to be seen if the next ten years will be just as influential and positive as the past. One thing is certain, however - governments and institutions have finally realized the true potential of decentralization.

Disclaimer: This article has been Produced on behalf of Alluva by Times internets Brandwire team.

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The World's View of Cryptocurrency and Blockchain Is Rapidly Changing - Times of India