Governments, Step Up Your Cryptocurrency Support, or Get Left Behind
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August 03, 2019
It’s time for governments around the world to no longer stay in the shadows, observing the cryptocurrency landscape from afar and simply do nothing. Government and anti-crypto media have for a long time primarily associated cryptocurrencies with criminals, computer nerds, and Silk Road. But that approach is not going to work anymore, crypto is not going anywhere.
“It is akin to the Luddites. They are in fact saying, ‘we will not tolerate progress.’ It will set them back 40 years. Imagine if they did this with the internet?”
This is the words of billionaire venture capitalist and long-time Bitcoin fan, Tim Draper had to say about a recently published draft submitted by the India governments inter-ministerial committee. In the draft, it states that “No person shall mine, generate, hold, sell, deal in, issue, transfer, dispose of or use Cryptocurrency in the territory of India.”
India has for a long time been a vocal anti-crypto nation, and their stance doesn’t seem to have changed in recent times. Although they seem to be more supportive of the technology behind it, blockchain technology.
Saying “No” to Crypto But Giving a Thumb Up to Blockchain Doesn’t Make Sense
There is a new approach taken by countries like India and others. Which is supporting the technology known as blockchain, or a distributed (decentralized) ledger, but at the same time being very anti-cryptocurrencies? And that approach seems very confusing and anti-innovation. The era of taking an anti-approach and just closing shop will never again be the winning tactic.
We understand that some governments are scared. They have been scared by the tactics employed by certain media houses and financial institutes. Which have for a long-time painted cryptocurrency in a very bad light. And we can understand that they are scared of giving away their control, especially for a decentralized technology where the power lies in the hand of the citizens.
But this approach to governing, and to restricting new technologies has never been a smart one. With an accepting approach to both technologies, there would be plenty in rewards to reap in. With a positive tech climate and supporting businesses you would get increased employment rates, attracting many new investors, and opening up the doors for your younger generations. We have seen the positive effects of this in the past, such as in countries like Sweden, Denmark and the Netherlands who often top EU’s Innovation Scoreboard.
And we have seen less positive examples of this, recently with the outflow of talent and businesses from London and the UK due to the uncertainties of Brexit.
Banning will not work. And banning one half of the technology but allowing for the other half to be allowed is just going to confuse investors to companies and employees alike.
Governments that show clarity and embrace will be the real winners. Because no one wants to work in an environment where they are unsure about what they can and can’t do. Or work in an environment where they are constantly unsure about the security of their employments.
Government Closing the Door to Crypto are Also Closing the Door to Their Younger Generations
The problem is that a lot of government seems to lack a clear understanding of the technology but also the needs, and wishes of its citizens.
In recent years both across Europe but also the U.S, we’ve seen the rise of new political parties and figures, many associated with the anti-expert movements. Where people have become tired of politics and the lack of transparency this has brought.
This strikes me as yet again as something similar to the old guard trying to protect itself and its interests from technologies. But more often than not they end up restricting their growth and losing their power.
When asked if they would prefer to invest in stocks or cryptocurrencies, younger generations made it clear that they would prefer to invest in cryptocurrencies. And up to 70% would invest if it were easier to do so today with existing services and products. That tells me there is a huge interest in new technologies, and for cryptocurrencies.
The Countries Embracing Crypto Now Will Be the Real Winners
Therefore, it’s so great to see the news that San Marino together with DNV-GL and VeChain are working on a blockchain and cryptocurrency-based technology concept together. A perfect merge where the two technologies come together with a country that wants to progress and not regress. San Marino will more likely than not be a future reference example of a country done things right in the coming years.
This initiative goes under the name of “San Marino Low Carbon Ecosystem“. And it is aimed to help the state and its citizens work together on reducing their carbon footprints and CO2 emissions. And connecting this whole initiative is a new token created on the VeChain blockchain named the San Marino Innovation Token. Which will be given out to its citizens on a reward basis for reducing their carbon footprints.
We’ve seen Malta being another country to have embraced the new technology and the finances it brings with it. With cryptocurrency exchanges like Binance and many other exchanges to companies alike moving their businesses to the new economy friendly Mediterranean island nation. Malta knows from its previous strong connection to the iGaming industry that with new technology often new money also comes.
But for other nations around the world, they need to understand the potentials that come by embracing new technologies and fostering an entrepreneurial culture. There is not just one way you can do that for cryptocurrencies or blockchain.
Find your path, try to experiment with cryptocurrency and blockchain companies on your terms. There is a clear need for citizens to use and embrace new technologies, blockchain and cryptocurrencies are nothing different.
One thing is for sure, if someone expects that a ban will solve their problems then they are probably very off-target, and as Tim Draper said will be left behind.