Today’s financial system and the modern money economy give confidence in money. How did money come to be so powerful in the first place? It is because of this confidence that a currency can survive in the long term. But there are breaches of trust in history. Examples of this are the various financial crises, such as the dot.com bubble in 2000 or the financial crisis in 2008 and the euro crisis. You can read the article about the financial crises here.
More confidence in Kyptro currencies
Many market participants have found new confidence in the so-called crypto currencies. The probably best known crypto currency is the Bitcoin. The first completely dezentrale payment system was Bitcoin. The name for this technological basis is the blockchain technology. New developments and new types of currencies are only trusted if they offer great advantages for their users. The new function must be superior to the old currency system.
However, such a calculation is not always so simple. The various crypto currencies still have a lot to catch up in terms of crypto currency as a means of payment, means of preserving value, arithmetic unit, etc. They also do not represent a legally permitted means of payment.
Regulation of crypto currencies
In order for crypto currencies to be more trusted in the future and to assume a function as an official means of payment, the BaFin, as well as other European regulatory authorities, need to use and focus on regulation and consumer protection in order to ensure stability on the financial markets. The regulation thus offers the possibility to integrate new technologies, such as blockchain and crypto currencies, into our existing financial system in a meaningful way and to make them usable for all of us.
If these new technologies have a legal foundation, then they not only have great potential to bring about new positive developments in the financial market. The new technology can also have a positive impact on many other areas of our everyday lives. How do you feel about the idea of regulating crypto currencies? – Maxim Bederov
The source of this article can be found here.