Cryptocurrency is gradually going towards the mainstream and the fight to bring them under global control
Since the birth of cryptocurrencies in the form of bitcoin, blockchain technology has become the most profound applied science. Mainstream financial organisations are gradually accepting and adopting this decentralized financial system and the underlying blockchain technology.
The first institution to be part of this change is JP Morgan. They have announced stating they are going to create and release JP Morgan Coin or, in short, JPM Coin. This is the first instance when an international bank has issued its own crypto coin. To protect the volatility of their coin from the likes of bitcoin, the JPM coins were exchanged for one US dollar in the trial periods.
One of the main reasons this international bank launched its own coins was to facilitate the real-time transfer of funds for their corporate clients. This new system can potentially replace the existing interbank money transferring network named SWIFT. Because sometimes, it takes a whole day to transfer payment through this method.
After JP Morgan’s announcement, the IMP and World Bank together announced, they are going to launch something called a Learning coin. It is a quas digital coin within a private blockchain network designed to help them study the blockchain technology more profusely. Later Facebook had announced that they, with several other corporate giants, such as Uber, Vodafone, Visa and Mastercard, are going to launch a cryptocurrency named Libra.
Where is the catch?
This whole online decentralised platform is the most attractive space for those who want to get rid of the US-dominated financial system. In response to the US’s threat of disconnecting Iran and Russia from the SWIFT payment system, they are already preparing to launch a state-backed crypto coin. With this move, they will be able to easily access other blockchain-based payment platforms and moreover, it also has the capacity to weaken the international payment mechanism.
Fraudulent activities and hacks are also increasing on this platform. The UN had accused North Korea of looting around the US 571 million dollars. With all these international activities, the observers are very concerned about the current market situation. Although cryptocurrency is still at the beginning stage of its growth, nevertheless it is a rapidly growing market. The Based Committee, which is the supervisor of international banking services, had warned banks to be aware of direct and indirect exposure and protect themselves from any harm.
The grey area in between the system
The regulations of crypto coins remain to be a very grey area for the existing financial system. The crypto coins and similar assets are traded in two types of platforms: centralised and decentralised.
Countries are divided by their stands. France, Ireland, Japan, China, Turkey are the countries that are taking strict measures against cryptocurrencies, but there are others who are welcoming digital coins with delight. The US has stated that crypto coins will directly fall under the asset and are taxable. There is a growing tendency to adapt digital coins and their underlying blockchain technology.