The source and usage of cryptocurrency is once again making headlines. When Facebook executives announced the plans for Libra, their own cryptocurrency platform, criticism and praise quickly went viral. Facebook and other large corporate entities are taking notice and incorporating crytpocurrency into their business platforms. These organizational decisions are creating a bipolar relationship with cryptocurrency and the national public.
Within a few days of bitcoin virtually taking over the currency trading markets this week, cryptocurrency in general receives backlash from government bodies. It seems everyone has an opinion, and some of the reactions were visceral. Those who support the platform are investing heavily in hopes of receiving a huge payout. Groups and individuals who oppose cryptocurrency believe the international financial market is at risk of an impending and devastating collapse.
The truth most likely lies somewhere in the middle. Understanding how cryptocurrency was designed will help alleviate the concerns of most critics. This is a world where hacking, identity theft, and other forms of computer based fraud crimes are consistently on the rise. Enabling digital currency options may be a viable solution implemented to protect consumer banking and financial information.
Federal regulation is of course a major concern. These currencies have to be governed and there is some controversy over which agency is best suited for the task. If they are going to be publicly traded, the Security and Exchange Commission should assign a quasi-governmental regulatory body. Independent and pass thru options, such as the proposed Libra created by Facebook, fall into a unique category. This creates murky waters when it comes to legislation and lawmakers are at an impasse. The slothful drawl of government approval is no match for the fast paced rate of technological advances.
If the tried and true reputations of Bitcoin and similar virtual currencies are any indication, this is the future of online financial transactions. Currency trading platforms like Forex are supporting the change, provided checkpoints are installed. Sustainable growth opportunities mean increased wealth and trading options for many developing nations that previously had no credible voice in the affairs of the international monetary system. How these controversial issues will play out on the international stage remains to be seen. However, it is certain that the global marketplace has experienced a change that cannot be undone. This introduction is indicative of something larger looming on the horizon.