Is Crypto the Future? Cryptocurrencies are today one of the hottest segments in the market. The crypto market has already crossed the 3 trillion market cap. However, there is some confusion among crypto traders about the future of Cryptocurrency. Many Crypto traders are concerned about the Crypto bans by their governments.
Another side is that the Crypto market is emerging day by day. Crypto assets are widely accepted by millions around the world. While there are many countries that have imposed a complete ban on crypto trading, including China which was known as one the best countries for crypto-based startups with an established Blockchain infrastructure.
Why governments are not positive about Cryptos?
There are many countries that are working to develop an infrastructure for the Blockchain ecosystem and regulate the crypto market. However, some governments and central banks have still fear the Cryptos.
The unethical use of cryptocurrencies was always an important concern of Governments. Now other concerns are the security of crypto-assets and their circulation as an alternative currency. Usually, governments never allow the establishment of an entity that works as an alternative to Fiat Currencies.
According to some government institutions and the executives of central banks, cryptocurrencies can damage the economy in the upcoming years. However, the ground reality looks different if we analyze the cycle of crypto trading.
Why do banks need to support Cryptos?
As per the data of CoinMarketCap, today Crypto assets have surpassed almost 3 trillion market cap which is similar to the market cap of Apple Inc. and Microsoft Corporation. Some Crypto startups’ market cap has surpassed the total market cap of some big names in the tech industry.
As the crypto sector is emerging the cash flow is also emerging due to heavy transactions. Now the institutional investors are fueling billions in Bitcoin and other cryptos. Today, Crypto investments are not just increasing the cash flow of banks but also boosting the economy. Practically it’s not true that Cryptos are damaging banking institutions.
The account opening process with Crypto trading platforms also follows the same regulations as we face with banks. Crypto exchanges do not just ask for KYC or PAN records but also follow proper documentation to enable crypto trading.
As we can see the digital assets are gaining the trust of the market and they will grow continuously. El Salvador has recently announced to accept Bitcoin as a legal tender. In the upcoming years, some more countries can join El Salvador.
Is Crypto the Future?
Decentralization of payment services can solve many problems of the world. People must not suffer because of the political moves of their governments. In some countries, where the international payment system is not working, cryptos can solve their issue in an efficient way.
According to some market experts, Cryptos are the future of money transfer. As cryptos don’t need any intermediary during payments, people can send and receive money from any location in the world. By using a crypto exchange anyone can make international payments easily in seconds.
Cryptos are not just an easy financial framework but also an environment-friendly payment system. As cryptos don’t need any paperwork and their all process comes with digitalization. Cryptos have already proved how a financial ecosystem can run on just the trust of the people without any authority.
Is it possible to ban Cryptos completely?
Cryptos can’t be controlled or banned by any authority. Also known as the original Crypto, Bitcoin was invented to keep the authorities out from the payment transfers. In the age of the internet, technically it’s not possible to ban cryptos completely. Even if the government bans, there are many ways to trade in cryptos.
Governments just can ban centralized crypto exchanges like Binance, Coinbase, Huobi Global, or Kraken, that are registered with a government authority, not cryptos. As all cryptos work on a smart contract without registering with any government authority. The decentralized exchanges also follow the same framework that can’t be controlled or banned.
What to do if Government bans the Crypto?
As we have noticed in China where crypto trading is completely banned by the government but still Chinese crypto traders are trading in cryptos regularly. Chinese crypto exchanges are also working with the same energy. They have just moved their offices to Singapore and other Crypto friendly countries.
As per the report of Financial Times, after the crackdown on centralized crypto exchanges, now the Chinese crypto traders have moved to the DeFi (Decentralized Exchanges) which can’t be controlled by any authority. To continue their trade, the Chinese crypto traders have also opened their accounts with overseas banks.
If any government bans the crypto, the crypto exchanges don’t face big trouble, as we have already seen in China. The Crypto exchanges just move their offices to another country that supports blockchain startups like UAE, Singapore, or Cayman Island. The users can trade in cryptos by using VPN and overseas bank accounts.
Another way is decentralized exchanges that have made it possible to trade in cryptos, even if any country bans the crypto. You just need to open an account with a Decentralized exchange like Uniswap, Pancakeswap, or Binance Dex. After following the signup process you can start trading in crypto or can also move your existing crypto assets.
How does Crypto Ban damage an Economy?
There are many crypto investors who are living in other countries but using their local bank accounts to trade in cryptos. If any country bans the crypto they will simply add their overseas bank accounts with the trading platform. It will clearly reduce the cash flow of a bank.
Today, it’s not hard to open a bank account with an overseas bank even if you’re living in another country. Even with a tourist visa, now people can open a savings bank account in any country. It will be a direct harm to the local banks, as well as the startup ecosystem of the country.
Today crypto is a 3 trillion industry and in the future, it can be doubled. In the USA, many crypto startups are working with Unicorn tag. Crypto startups are not just paying taxes and other charges but also creating jobs for the masses. In the digitalization of the economy, crypto startups are playing an important role.
Crypto is the future of financial technology. It’s time to support and accept the revolution of blockchain technology. Banning crypto will not just damage the economy but also lead to the brain drain. As we have seen with China, all blockchain startups moved to overseas locations, as well as their skilled manpower.