Is Cryptocurrency a Threat to the Financial System?

Is Cryptocurrency a Threat to the Financial System?

Cryptocurrency Issue Approached Differently Across Globe

Cryptocurrencies are revolutionary. Since Bitcoin first came on the scene, each country has approached the cryptocurrency issue differently. There seems to be no consensus when it comes to how to handle cryptocurrencies. Of course, there are countries that do not support use of digital currency within their borders. For instance, China began a campaign against crypto last year. Since then, the country has broadened its efforts to clamp down on the cryptocurrency industry.

Crypto-related Events Forbidden in Guangzhou

According to media reports, China is even going after events promoting crypto-related activities. In fact, as The Star Online reports, the campaign is spreading beyond Beijing. The publication reveals that a special economic zone in Guangzhou will no longer allow crypto-related events. Interestingly, this area that is free from central government control. In essence, it is an “free” economic zone that caters to trending technologies regardless of the central government’s stance.

Unfortunate as that may be, that is the official position of the Chinese government regarding cryptocurrencies. However, many other governments have not come out explicitly to support or condemn crypto. For instance, in the USA, digital currencies are not illegal. In fact, majority of the leading cryptocurrency-related companies are American. What is different is that regulatory bodies are yet to decide how to regulate the cryptocurrencies.